BOT Full Form In Hotel

What is the Full Form of BOT in Hotel?

BOT Full Form in Hotel is Build Own Operate Transfer. Concessions are a type of project delivery technique in which a private firm acquires a concession by the government sector to fund, build, own, and run a facility specified in the concession contract.

For a specified duration, a private company will be granted the privilege of running it. That way, the project backer can get a return on their initial investment as well as their ongoing O&M costs.

In public-private partnerships, BOT is a common business structure. The fees are typically increased during the time of concession because of the arrangement’s duration. Proponents can achieve a desirable internal rate of profit by linking the pace of increase to a number of different factors, both internal and external.

What else should you know about BOT?

The public-private partnership and infrastructure sectors are two of the most common places where BOT is used. A BOT arrangement occurs when an outside party, such a government agency, contracts with a private company to design, construct, and run and maintain infrastructure for an agreed upon time frame.

 During this time, the private party is in charge of securing project funding, has full control over the facilities in question, and is entitled to keep any profits made.