Capital Expenditure

Capital Expenditure, also called as Capex , points to all capital improvement prices of owning hotels over a possession’s life span, comprising such capital costs that prolong the economic life of the asset.. It is considered a capital expenditure when the asset is newly obtained or when money is used towards extending the useful life of an existing asset, such as repairing the roof. Capex thus includes all money spent by a corporate on acquiring, upholding or fixing assets such as land, buildings and paraphernalia. Thus, capital expenditures can include everything from repairing a rooftop to building, purchasing a piece of equipment or building a brand-new workshop. Capital expenditure is often required to undertake new projects or investments by the firm. This type of financial outlay is also made by companies to maintain or increase the scope of their hotel operations.