The Lebanon express. (Lebanon, Linn County, Or.) 1887-1898, 1888-09-21
nav YoRk.s noTEls.
The Capital Invested In the Caravanseries
of the American Metropolis.


of the American Metropolis.
The amount Of money invested in
hotel property in New York is vari-
ously estimated, but according to a
fair allowance the land and buildings
are worth $l5,0OO, 900 - that Is, an
averaged valuation OF each piece Of
property at $241. .935.50. OF course
this amount would be largely in excess
of the value of more than half of the
regular hotels within the city limits,
but it is also away below the just as
sesslnent of nearly twenty of the big
hotels now in business. The furniture
in the hotels is estimated as having a
value OF 1000. 900, with an average
value of $50, 259, Several of the large
houses have expended $25o,o0 on
their interior decorations. and three
or four even more than this. All OF
these estimates are placed exceedingly
low. yet they show that simply to
build and furnish the good hotels it
required an outlay of S17 900. 600. This,
after all. is an exceedingly small in
vestment when compared with the
amount of money required to acc M
modate the guests.
At the legal rate OF interest this in
vestment should return $3.50, 600 year
1t does all this and much more. The
total income OF the number of hotels
mentioned is estimated by good au-
thorities as S14,750, 600 g year How
much of this is profit is figured out in
this way: There are accommodations
for nearly $4,000 person in the hotels
rated as respectable Th e are at
least two-thirds that number per-
sons who are counted upon as regular
patrons. 1t costs n hotel keeper on
the average about 81. 25 q day to feed
and attend to the needs of one guest.
( This amount on an average patronage
of 20, 900 would represent an outlay Of
! $25. 900 day, or $9,025, 600 year.
When this is added to the interest on
the original investment of S17. 900. .o0o
! it brings the total yearly cost. count
ing { employment of servants, which
! represents an outlay of 81, 362, 600 more
I up to the respectable total of $11, ,237.-
( 600. This deducted from the estimated
( total receipts gives 50, ,513, 600 as the
profits 10 be divided between sixty-two
establishments, and would be an ex-
/ cellent chance for capitalists 10 go right
10 xork and pile up more capital with
the rapidity and persistency OF the
/ everlasting SNOWFALL.
Such profits would easily explain the
reasons for the great number OF big
new hotels in contemplation or already
under way. But, unfortunately, when
the noses of the guests OF big New
| York hotel are counted. they don't
always mean a weekly or monthly set
tlement of the bill. The number OF
''hotel BEATS" despite all the precau-
tions taken to detect them and to avoid
giving them credit, is matter which
+ is exceedingly grave to the hotel pro
prietors. There are at least thou
sand persons who practically live upon
the neutrality-suspicious. of this city. Not
the same ones all the while, of course,
but the loss represents the loss of the
board of that number OF individuals
This at once makes an inroad into the
big profit of 81 ,O95, 600 at an average
of three dollars day. Then come the
breakages in dishes and the invest
ment in new cutlery, which in a prop
erly managed house amounts at tht
average to 5000 q year. This draw:
another SSlo,o 900 from the profit. and
then come the Thousand and one othel
items Of expenditure-gas, coal, dam
age to furniture, and the like which
run up 10 the big total of 81. .026, 900 ,
year, ard again pare the profit down
leaving it In the neighbOrhood of 81,
0S2, 900 to be divided among the sixty
two hotels, giving each an average
profit. subject TO still further drains
of $I7, ,453. When one considers tha
this profit has to be divided in mos
cases among three or four partners
the little hotels are not coiners o
money, and the student of finance a.
!. applied to hotel Keeping continues t,
wonder why it is that big hotels ar
still going UP in various parts of tn,
metropolis.-N. 7. Times. -