Question

The term "Key Money" can be described as: A. A way of providing working capital to...

The term "Key Money" can be described as:

A.

A way of providing working capital to the owner.

B.

A way to finance a hotel project

C.

A way of providing working capital to the manager

D.

The value of the hotel divided by the total number of rooms.

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Answer #1

Answer is option B

B. A way to finance a hotel project

In hospitality industry, many times hospitality entities provide financing aids to hotel owners such as below-market financing or guaranteed financing from third parties. Such incentives in hospitality industry are referred to as key money payments.

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