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For Marriott, the price of funds is the entire on the management price and operating price. The 3 major functioning fees are the expense of design, expenditure and depreciation.
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In keeping with its yearly report, the standard occupancy proportion in the Marriott Houses is eighty four%. So what does this amount mean?
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Then, with all of these expenses and also the Projected money flow, you estimate your return to the house. You should also involve depreciation and amortization (depreciation) in the estimate, as it is funds improvements that repay eventually. and amortization is simply the incremental Price tag within your advancements after a while.
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