Three sources of finance will be used to finance the Metu Alumni Hotel project:
*Equity: A certain part of the deposits that Metu Alumni Center saved in the banks will be used in financing the investment.
*Funds from Graduates: Metu has numerous number of graduates who are in respectful positions in big companies of Turkey. In the construction of Metu Alumni Association a great deal of the funds were supplied from these people. For instance Nurol company supported the Association in the construction phase and Tepe company supplied some portion of the furniture needed. In the same way, support of graduates can be asked in the construction of Metu Alumni Hotel.
*Loans: The rest of the project will be financed by short term and long term loans.
For the construction of Metu
Alumni Hotel an investment cost of 1,095,000$ is necessary. 595,000$ of
the project is considered to be financed by long term loan of 5 years at
20% interest rate. The rest of the money will be supplied from equity and
funds from graduates.