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Yet one more factor which has a direct effect on the overall cost of ownership is definitely the management expenses. These are definitely the fees that Marriott motels obtain from their visitors at time they remain in the hotel. These management charges are not likely taxes but are an incentive to help keep the guest's rooms occupied.
The standard approach isn't exact since in The present sector, Qualities Possess a good deal more depreciation that does not go into account. The 2nd approach to think about the distinction between the reserve benefit and the understood value is by taking into consideration the reduced percentage depreciation and the upper expenses.
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For Marriott, the price of cash is the whole of your management rate and running payment. The 3 primary functioning expenses are the expense of development, investment decision and depreciation.