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welcome this is lloyd lofton today were going to go through some examples of semi-fixed expenses in the hotel industry you know a fixed expense would be something like the cost of land if they leased it the lease amount and of course if they own it the fixed expense would be the property tax those expenses have to be paid no matter what thats why we refer to them as a fixed expense because no matter what they have to be paid so what is a semi-fixed expense well semi-fixed expense would be things that are veritable you still have to be paid but youre not sure what the amounts going to be what are those well utility utilities could include electric gas or water the cost might vary monthly but to operate the hotel those expenses have to be paid they may not be under you direct control the totals the amounts the monthly amounts but the fact that you have to pay it is under your control on those fixed expenses you cant control those those are fixed that means that they have to be paid
