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The standard approach is just not precise because in The present industry, properties Have a very ton much more depreciation that does not go into account. The 2nd solution to look at the distinction between the guide benefit and the recognized worth is by thinking of the lower share depreciation and the higher charges.
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Most hotel operators will only deal with the present worth of the properties, or perhaps the NPV. They don't generally look at the extensive-phrase routine maintenance charges, that has a large effect on the extensive-expression routine maintenance cost of the hotel.
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This determine refers to the amount of rooms that could be stuffed over the year. Now, let us examine what Marriott accommodations truly mean In terms of visitor fulfillment.