For Marriott, the price of funds is the full of your management payment and operating rate. The a few main operating fees are the cost of construction, investment and depreciation.

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For illustration, whilst family vacation homes and commercial Houses have hardly any depreciation, most real-estate does have a substantial level of depreciation.

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As a result, if you had to subtract out all of the depreciation to Get the net book price, you will uncover that your housing valuation is considerably reduce than that of a Marriott Lodge.

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