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In any kind of hotel, the administration service fees usually are larger in comparison to the cost of capital. The upper the NPV, the decreased the overall Value. This really is why most traditional housing operators want Homes which have the next NPV.
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Management costs may consist of lengthy-phrase routine maintenance. Even though the lodge is sold, these costs can still be constructed into the price. This original site enables The brand new proprietor to obtain a reasonable selling price devoid of considering these routine maintenance prices.
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