Traditional Culture Encyclopedia - Hotel franchise - Does the hotel loan affect the opening of the hotel?
Does the hotel loan affect the opening of the hotel?
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The loan interest incurred before the opening of the hotel can be included in the value of the built fixed assets and capitalized. For example, to build a hotel, the bank loan is 500 million yuan, with an annual interest rate of 10% and a maturity of 5 years. The sum of principal and interest for five years is 750 million yuan, and the total investment has increased from 500 million yuan to 750 million yuan. The loan interest after the opening of the hotel is directly included in the current profit and loss, and cannot be capitalized or expensed.
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