Basic terms of hotel valuation

assessmentEstablish assessment task is the first step. This step is very important because it will affect the next steps. The question may be asked; where is the location of the property being assessed? What are the facilities available at the hotel? The effective date of valuation. What is the objective assessment? The ownership of the assessed. Is there excess land (surplus land)?. Who is going to manage the hotel? and others.

Collection Data. Determination of assessment tasks will determine what data is needed. Source of data: property owner or client, primary market research data (performed by the appraiser in field and property inspection and interview), secondary market research data (data in house from hotel comparison or other sources, note confidentiality agreement). The data collection process must be thorough and meticulous. Results of the assessment depend on the process. [Read more…]