Hotels, unlike the majority of commercial properties, are not valued on a floor area basis, but primarily on a profits basis. This reflects their nature as purpose-built or specifically adapted buildings that produce revenue and profit. There are various types of hotels and purposes for ownership. Factors that affect value with regard to hotels, and how the valuer should take these into account are covered. Advice is given on carrying out a physical inspection, with discussion of valuation approaches and calculation. Valuation examples highlight the principles discussed.
This section is maintained by David Harper of Leisure Property Services.