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In line with its once-a-year report, the average occupancy proportion on the Marriott properties is eighty four%. So Exactly what does this range indicate?

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For Marriott, the cost of funds is the whole from the management payment and running price. The a few main operating expenses are the cost of construction, financial investment and depreciation.

The NPV, having said that, doesn't take into account the depreciation because it is the expense of money. Even so, this is a component from the extensive-time period management cost, which also includes the maintenance price and the depreciation ingredient.

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As in any resort, the management payment will most likely not be particularly equivalent towards the cash Value. The management charge will likely be tied towards the resort’s revenue. However, the hotel’s profits might be more compact when compared to the money Therefore the administration fee is usually higher.