Favorites are saved in the BW system. Example: You want to save objects relevant for working in multiple BW projects to the favorites.
If you add complete InfoAreas to the favorites, they are added as children of the favorites node.
If you add BW metadata data objects to the favorites, they are added as children of the semantic folders that correspond to the relevant object type (for example, CompositeProvider or DataStore Object (advanced)). If the semantic folder does not exist, it is created as a child of the favorites node.