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The average hotel guest today has matriculated into a very experienced, sophisticated, and demanding guest. This necessitates the most up-to-date facilities and amenities available. Furniture, fixture, and equipment leasing can accomplish this with a minimum impact on cash flow and a maximum impact on profits.
A lease is an agreement between the user of the equipment (the lessee) and the owner of the equipment (the lessor). It allows for the use of the equipment over a selected period of time (the term) for a predetermined monthly fee or rental. The lease is generally noncancelable and cannot be terminated early. The lessee chooses the equipment and the sources for that equipment. The lessor purchases the equipment from those sources. The monthly payment is calculated by multiplying the invoice amount of the equipment by a monthly rate factor. Because you are not borrowing money with a lease, there really is no interest, but there is a finance charge. The lessee is normally responsible for taxes (sales or use tax, personal property tax), insurance (fire, theft, liability), and maintenance.
There are two basic lease classifications-the...