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However, this is anticipated to vary as being the hotel appreciates in worth, Considering that the administration charge signifies The existing price of the property. Consequently, the annual fee may also be larger when compared to the administration price.
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The NPV, even so, isn't going to take into account click here to read the depreciation because it is the price of capital. Nonetheless, this is a component in the lengthy-term management charge, which also features the maintenance charge as well as the depreciation aspect.
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As a result, if you needed to subtract out most of the depreciation to Obtain your Web book worth, you can learn that the property valuation is considerably lower than that of a Marriott Resort.
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