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Spa valuation

Spa valuation

This section provides guidelines for valuation of a spa as an integral part of a hotel or resort development and as a stand-alone entity when using the profits method.

Determining value for a spa can be a complex process given the disparity in different types of spa facilities, categories, business models, organisational design and management performance. With the objective to simplify this complexity, this section covers background information on the most common types of spas as well as Typical treatments, Basic valuation methodology, Operational challenges, Inspection, Interview with the general manager and Yield choice.

The examples provide profit and loss statements for a hotel spa and a stand-alone spa facility.

This section is maintained by David Harper of Leisure Property Services.