Valuation Report/1st Opinion

Swiss Hospitality Solutions can also render market or fair value estimates of the hotel trading business and underlying real estate asset. The scope of each assignment and the resulting report is tailored to meet the client’s individual specifications. The result is a comprehensive feasibility study and business valuation, which includes an opinion of value. All valuation reports prepared by SHS are compliant with Royal Institution of Chartered Surveyors Red Book (RICS) and International Valuation Standards (IVS). The valuation report is conducted by a fully qualified Chartered Surveyor.

When assessing the market value of the hotel property, the trading potential of the hotel operations is considered as well as the physical and technical condition of the building, covenant strength and allocation of capital expenditures. Additional considerations affecting the appraisal process include marketing policy of the management team, positioning and channelling sales strategy. In the area of hotel property valuations, SHS undertakes the following steps:

·          Negotiation and Acceptance of the Terms of Engagement;

·          Hotel Property/Site Inspections;

·          Preparation of Supporting Market Study, Property Description and Assumptions

·          Assessment of the Subject Property’s Trading Potential;

·          Preliminary Trading Projection Forecast;

·          Estimation of Net Operating Income/EBTIDA and appropriate Yield;

·          Triangulation using Discounted Cash Flow, Comparative and Cost Replacement Valuation Method(s);

·          Explanation of Valuation Methodology;