The smart Trick of hbr case solution That Nobody is Discussing
The smart Trick of hbr case solution That Nobody is Discussing
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In most cases, the brief-time period management price is connected with an additional share of appreciation, often called the IRR. The IRR is just the distinction between the extended-time period management charge and the prolonged-expression hire.
The third thing to have a look at is the quality of the rooms that the hotel presents. The particular number of rooms that you just get might not be all that it's cracked up to generally be.
Most lodge operators will only give attention to the current worth of the Homes, or even the NPV. They don't commonly look at the extended-term upkeep charges, that has a tremendous impact on the prolonged-phrase maintenance price of the hotel.
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