As in almost any hotel, the management cost will most likely not be specifically equivalent for the funds cost. The administration rate is often tied on the hotel's earnings. Having said that, the hotel's earnings is going to be more compact as compared to the capital And so the administration price is usually higher.

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The administration rate is reduce when compared to the operation and depreciation fees. Due to this fact, the overall cost of possession is better when compared with the capital. Thus, the overall cost of management is often reduced compared to capital charges.

Justify your inclusion of each challenge by giving supporting proof from your case study and by speaking about relevant theory;

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