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Valuing hotels as business entities

By: Contributor(s): Series: Journal of Leisure Property ; 2(1) January 2002, 17-28(11)Publication details: 2002Subject(s): Summary: This paper gives an evaluation of the theoretical context and practical application of different methods of hotel baluation - in particular concentrating on the methods related to the income-generating capacity of a hotel. The findings show a wide range of variation between the methods. Concludes that the 'income-base' income capitalisation methods are the most effective basis for a framework on which to derive the open market value for a hotel, but that other approaches should also be used in order to arrive at the hotel's final value.

This paper gives an evaluation of the theoretical context and practical application of different methods of hotel baluation - in particular concentrating on the methods related to the income-generating capacity of a hotel. The findings show a wide range of variation between the methods. Concludes that the 'income-base' income capitalisation methods are the most effective basis for a framework on which to derive the open market value for a hotel, but that other approaches should also be used in order to arrive at the hotel's final value.