We valued a freehold hotel for a commercial bank for the estimated market value of AED 476,400,000.
The property is a newly developed 4 star hotel, built over basements, ground floor, mezzanine, and 10 floors. It consists of 218 rooms, reception, restaurants, wedding hall, conference hall, gyms and swimming pool. Its land area is 2,167 square meters. Its built-up area is 20,100 square meters. The hotel will be managed by the top rated management.
We examined hotel’s feasibility study, title deed, site map, floor maps, license, completion certificate, and rating letter, among other documents.
We applied Profit Approach – Discounted Cash Flow (DCF) Method, whereby its 10 years income and expenses were discounted with an appropriate discount rate, and the terminal value with an market driven yield.
We satisfied client’s queries related to assumed occupancy and Average Daily Rates by providing supporting market comparable information with the help of Government Statistics, hotel operators and owners and our other hotel valuations.