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As a result, if you had to subtract out most of the depreciation to Get the net book worth, you can uncover that the real estate valuation is substantially reduce than that of a Marriott Lodge.

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As in almost any lodge, the administration fee will most likely not be precisely equal into the capital cost. The management fee is frequently tied towards the hotel's earnings. Nevertheless, the resort's cash flow will likely be smaller compared to the funds Therefore the management payment is frequently bigger.

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The administration fee is lessen than the Procedure and depreciation expenses. Due to this fact, the general price of ownership is bigger as compared to the funds. Consequently, the general price of administration is typically lessen than the capital prices.