Steve Rushmore offers some thoughts on the interpretation and use of the Hotel Valuation Index.
Since its inception, the economy segment has undergone a continual process of transition. Although most owners, operators and lenders take a “stick to the basics” approach, a problem arises when one attempts to define just what “the basics” are.
In this article the author explains how current low interest rates and high demand for hotel assets affect value gains.
The article presents three traditional income approaches that are used to estimate the market value of individual hotel assets. Each technique is illustrated by means of a unified case study that allows for a meaningful comparison of the techniques.
While the nation’s hospitality industry limped through 2001, there were several cities across the nation that fared reasonably well in spite of the malaise caused by the national economy slowdown and the events of September 11th. San Diego, also know
The State of California represents a powerhouse within the U.S hospitality industry and we would like to take this opportunity to provide an overview of the state’s key markets during the current challenging operating environment.
Prior to the events of September 11th, the market was performing at levels on par with 2000; however, since September 11th the market occupancy declined somewhat.
Factors both internal and external to a hotel property affect its value, and in turn, its property tax burden. In most cases, an experienced hotel appraiser, employing a proven appeal protocol, is needed to determine whether a property is unfairly assessed.
In hotel land valuation, an alternate to the sales comparison approach is the ground lease approach, where a ground rent for the land is hypothesized and capitalized into a land value estimate.