For Marriott, the cost of cash is the full on the management rate and operating cost. The three key operating expenses are the expense of building, investment decision and depreciation.
The third factor to take a look at is the quality of the rooms which the hotel delivers. The actual number of rooms that you just get may not be all that it's cracked up to become.
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The administration price is decrease than the Procedure and depreciation fees. Subsequently, the overall cost of possession is higher when compared to the funds. Hence, the overall expense of management is typically lower in comparison to the funds expenses.
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Although this may well seem similar to a big big difference, The truth is that it represents a negligible portion of the general expense of administration.
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