NMREC HOTEL VALUATION AND CONSULTING SERVICES

Hospitality properties are complex going concerns. Valuation of these properties requires a very high level of experience and dedication by the analyst. A thorough understanding of hotel operations, market trends, valuation methodology and market participants is required for the valuation of hospitality properties. Mark J. Faucher, MAI is NMREC’s hospitality expert. Mark has over 27 years’ of experience in hospitality valuations and is well respected by the wide field of industry participants ranging from commercial lenders to insurance providers, individual property owners and government institutions for his in depth knowledge, experience and passion for hospitality valuation.

Valuation

Our hotel valuations are based upon a format that ensures proven and industry accepted methodology, clear presentation and complete content. Reports are detailed and fully USPAP and FIREA compliant.

• Market analysis includes regional, local and competitive property analysis
• Income projections are tested for reasonableness from national hotel publications, comparable tier properties and NMREC’s extensive in house data base.
• Sale transactions utilized include revenue and expense information.
• Comparable hotel data are confirmed by in depth research
• Income based valuation models include three or more methods of valuation, including:
  1. Direct Capitalization Method
  2. Equity Return Method
  3. Discounted Cash Flow Method
  4. Gross Revenue Multiplier Method
• The Sales Comparison Approach is based on confirmed market transactions on a value per key. Data utilized is the most current and up to date hotel sales available in the market.
• The Cost Approach is developed as warranted as a check to test the reasonableness of other market indicators develop in other approaches to value, to test for business value, and, in limited circumstances, to help determine the Highest and Best Use of the property.
• Valuations are driven by the most current performance metrics in the industry including: occupancy rates, ADR, RevPAR, capitalization rates, pipeline reports and market segmentation analysis.
• NMREC has over 35 years of proven experience and expertise in hospitality valuations.
• NMREC hospitality reports are highly credible resulting in accurate and reliable valuations that assist the client in making well informed investment decisions.
• Appraisals are delivered timely and fulfil the client’s specific appraisal requirements.