Chapter 1
1. Some of the factors that affect investors’ interests in foreign investment are the region of the world, the maturity of the hotel industry in that region, and the varied real estate and capital markets throughout the world. Among these, the first two are the ones most related to the host country.
2. Hotels are considered high-risk international investments because unlike the products of manufacturing companies, unsold hotel rooms cannot be stored for later use. In addition, real estate and construction costs constantly increase. Still, other risks include natural disasters, political instability, terrorist activities, fluctuations in exchange rate, and ...