Hotel Valuation
hotel valuation
index
In recent years, tourism has become a rapidly growing market sector. Its growth has been so great that it has been key to boosting socioeconomic growth globally.
If you have the idea of investing, whether buying or selling, in a hotel property, you should advise yourself on what aspects must be taken into account and what the process is to be able to obtain the real value of the property and not have losses.
Why is Hotel Valuation important?
Because the tourism sector is one of great competition between hotel chains for having the best facilities and the area, this assessment should be considered as it helps to detect the advantages and disadvantages that exist in comparison with the competition, or, It helps detect deficiencies which can be corrected and increase competition in the sector.
What are the characteristics that are taken into account when evaluating a hotel?
Location: This aspect applies the same as for other types of properties (houses, apartments, commercial stores, etc.) depending on the area where the hotel is located, its value will increase or decrease and in the same way what is around it will to influence this.
Category: This is determined by the quality of the place, as well as all the services it has, these characteristics will give the hotel a rating, the category is defined from 1 to 5 stars.
Antiquity: This aspect goes hand in hand with the state in which the property is located, since if the place needs to be remodeled, this can cause an increase in the value of the place in the future and if it is not If no remodeling is carried out, the hotel may depreciate and generate losses.
Architecture: Here the structure of the place is taken into account, how its services are distributed, since if the location of everything is confusing it will cause the loss of customers, and the finishes are what make the place look more elegant.
Brand: This is another very important aspect, since the brand image of a hotel chain is the main attraction for people, since many people will prefer to stay in a hotel of a recognized brand, which is why this aspect has to be taken care of. a lot since a bad brand image would have the opposite effect and scare away potential customers.
Management: This refers to the part of the hotel's finances, how they are managed so that there is no type of debt.
Methods to carry out the Hotel Appraisal
Comparable Sales: In this method, other properties similar to the one that is going to be valued are investigated in the real estate market, the expert investigates the demand, recent sales, monetary amounts of rent or rent, and then with that information he will proceed to establish a value for the property. property that is similar to the others. Here they also take into account the fact that there are different variants that belong to each hotel, and to do so this method will have to be complemented with another.
Income Capitalization Approach: With this method, the income that the property will generate in the future is measured and with this the value that the hotel could have is calculated. To reach this value you will have to buy with other hotels that share some characteristics.
Cost Approximation: It is used to calculate the value of the investment that is going to be allocated to movable and immovable property. Here, the depreciation that they may experience due to physical deterioration, economic and physical obsolescence is taken into account.
Based on Multiples: With this method you can measure the economic potential that the hotel has, that is, how much profit it can generate in the future.
Replacement: In this method two things are taken, the period of existence of the hotel and the value of the land where the hotel is located.
ANEPSA GLOBAL
With Anepsa Global it is possible for this and other types of appraisals to be carried out, cont.toContact us by leaving your information or sending a message through our social networks, we are here to provide you with advice and guide you so that you know what type of appraisal is best for you.
