Amortization: Difference between revisions
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{{General header}} | {{General header}} | ||
== What is amortization == | == What is amortization == | ||
Amortization in this case, is the gradual reduction of | Amortization in this case, is the gradual reduction of debt through repayments we agree upon with the lender. There is no overview in a balance sheet of the financial situation at the beginning or the end of the year. | ||
From the [[Operating review]] we know, that there | From the [[Operating review]] we know, that there are [[costs]] of interest, which are stated in one group, along with [[insurance]] costs. <br> | ||
Amortization is a key element, especially when using [[EBITDA]] as a measure of a | Amortization is a key element, especially when using [[EBITDA]] as a measure of a hotel's overall financial performance. | ||
== Your hotel == | == Your hotel == | ||
There is not much administration available, so far. In fact, the [[operating review]] is the only public financial statement we have. Also on | There is not much administration available, so far. In fact, the [[operating review]] is the only public financial statement we have. Also information on [[liquidity]] is lacking at the moment. So, in the Game there is, as you take over, no insights in [[liquidity]] or amortization; it seems this hasn't caused any problems so far. | ||
<br><hr> | <br><hr> | ||
''→ GO! [[#top|Top of this page]]'' | ''→ GO! [[#top|Top of this page]]'' | ||
<center><small>''Emerald Forest Hotel'' offer an <font color="green">'''emerald''' </font color="green">hotel experience! | <center><small>''Emerald Forest Hotel'' offer an <font color="green">'''emerald''' </font color="green">hotel experience! | ||
| Run your own hotel in this management simulation.</small></center> | | Run your own hotel in this management simulation.</small></center> | ||
Latest revision as of 14:25, 5 September 2023
What is amortization
Amortization in this case, is the gradual reduction of debt through repayments we agree upon with the lender. There is no overview in a balance sheet of the financial situation at the beginning or the end of the year.
From the Operating review we know, that there are costs of interest, which are stated in one group, along with insurance costs.
Amortization is a key element, especially when using EBITDA as a measure of a hotel's overall financial performance.
Your hotel
There is not much administration available, so far. In fact, the operating review is the only public financial statement we have. Also information on liquidity is lacking at the moment. So, in the Game there is, as you take over, no insights in liquidity or amortization; it seems this hasn't caused any problems so far.
→ GO! Top of this page
