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For Marriott, the price of money is the overall of the administration payment and running price. The a few main functioning costs are the expense of building, expenditure and depreciation.
This can be the exact methodology utilized by those who obtain real estate property; they order the Homes at good industry benefit and receives a commission for them at an increased price because of inflation.
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Most lodge operators will only concentrate on the present value of the Houses, or perhaps the NPV. They don't normally consider the prolonged-time period servicing fees, that has a big influence on the extensive-time period servicing expense of the hotel.
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