Capital Reserve

What is the definition of Capital Reserve in the hotel industry?
The term Capital Reserve refers to a story on a balance sheet comprising of capital set aside for specific situations. Any revenue that arises in a company in particular circumstances is called Capital Reserve. The capital in the Capital Reserve is destined for capital expenditures. It should thereby help get ready the corporation for any unexpected events like increase, unsteadiness, need to enlarge the business or to get into a new and urgent assignment.
The Capital Reserve is one of some types of reserve accounts that corporation keep in order to organize for future expenditures. It is formed by collecting capital surplus of a corporation. This happens when an asset is re-examined positively and its high value is reflected in its present market after its approval.

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