Most hotel operators will only deal with the present worth of the Homes, or perhaps the NPV. They don't typically think about the prolonged-expression routine maintenance costs, which has a big impact on the extended-expression routine maintenance price of the resort.
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While this may perhaps sound like a big difference, The reality is that it signifies a negligible part of the overall cost of management.
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The NPV, however, doesn't keep in mind the depreciation as it is the expense of money. On the other hand, this is part with the long-expression management charge, which also includes the upkeep price and the depreciation element.
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