Excuse me, does anyone know how the hotel's return on investment is calculated? Please enlighten me!

The rate of return involves the ratio of depreciation and amortization each year. Generally speaking, the depreciation and amortization of hotels are completed on average according to the expected return date. Therefore, if you invest for 7 years, your depreciation and amortization should be: initial investment of the hotel (such as investment of 7 million)/investment (7 years). (It can also be set to decrease or increase by amortization year by year)

Annual depreciation and amortization expense = 7 million /7 years =10 million/year.

So calculate the rate of return in the above way, that is:

Annual profit before tax = annual profit (for example, 2.4 million)-annual depreciation and amortization expense = 2.4-100 =10.4 million.

So your annual rate of return is: annual pre-tax profit/hotel upfront investment = 140/700 = 20%.

I hope it helps you.