CapEx includes investments in long-term assets such as renovations, equipment, and
infrastructure that improve the hotel’s physical product.
Why it matters:
CapEx decisions shape guest experience, pricing potential, and long-term asset value.
Practical use:
Owners plan CapEx projects to support repositioning or brand upgrades.
Real-life examples:
Room renovations enable a permanent ADR increase and attract higher-paying segments..
CapEx (Capital Expenditures)
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