Fixed Expenses
The fixed expenses include the property tax & insurances, a base management fee, an incentive fee and the FF&E reserve. The property tax and insurances are assumed to amount approximately 1.4 per cent of total revenue. The base management fee is assumed to be at about two per cents of total revenue in the first year, 2.3 per cent in year two and 2.5 per cent year three and thereafter. moreover, an incentive fee of five per cent is expected within the first operating year, rising up to eight per cent in