The document discusses the mass appraisal technique for valuing hotels. It begins by defining mass appraisal and how it can be used to value complex property types like hotels through the development of models. It then describes how to segment hotels into categories and quality classes. The preferred income approach for valuing hotels through mass appraisal is described, including how to estimate income, occupancy, expenses, and capitalization rates from various data sources. Methods for isolating and removing business value are also summarized.
Talking ME / Talking YOU / Talking WE - > (Y)OUR BUBBLEWico Mulder
Zie info op de website van De Geneeskundestudent https://degeneeskundestudent.nl/talking-medicine/
“In his latest book, Dan Siegel explores a pathway toward a more sustainable way of being humans facing the multiple pandemics of our times together. Synthesizing insights from a range of disciplines and ways of knowing, he argues for expanding, evolving the notion of the self, from an isolated and separate ‘me’ to a relational, awe-embracing integrated sense—called, in his intriguing coinage, ‘MWe.’ I know of no more encouraging prescription for what ails us at this time.”
This document provides guidance for the Navy's CPO 365 program for developing and training First Class Petty Officers to become Chief Petty Officers. It outlines two phases for CPO 365: Phase 1 focuses on year-round leadership development for all FCPOs, while Phase 2 provides final training and preparation for those selected to become CPOs, culminating in a Final Test and pinning ceremony. The guidance emphasizes consistent leadership training throughout the year rather than an abrupt change once selections are made. It also stresses safety, family involvement, and preparing FCPOs to become the respected senior enlisted leaders of tomorrow.
This citizen petition requests that the FDA take action against SmileDirectClub (SDC) for misbranding its plastic teeth aligner and dental impression material products. It alleges that by selling these products directly to consumers without valid prescriptions, SDC is violating the "by prescription only" restriction placed on these devices by the FDA and misbranding them. The petition requests that the FDA seek injunctions against SDC's sales, seize misbranded products, levy civil penalties, and require a recall of affected products. It argues that SDC's approach fails to meet standards of care for orthodontic treatment and places consumers' health at risk to protect commercial interests.
This document summarizes a presentation about hotel valuation given by Tim Wilmath. It discusses different hotel types and performance levels (under-performing, exceeding expectations, operating as expected). It notes that when a hotel is operating as expected, it does not present many valuation challenges. It explores reasons why some hotels succeed while others fail, noting the importance of having a market, competence, and passion. Specific hotel examples from Nashville and Orlando are discussed. The importance of these same factors - market, competence, and passion - are related to succeeding in one's work.
Hospitality Law Conference 2010 - What Lawyers & Operators Need to know about...HospitalityLawyer.com
This document provides an overview of tax reassessment appeals for hotels. It discusses how the economic downturn has impacted hotel values and incomes, increasing pressure on owners to appeal property tax assessments. The presentation covers different types of taxes hotels pay, challenges assessors face in valuing hotels, and methodology for separating real estate value from business value. It also outlines hotel tax appeal processes and strategies, including common valuation approaches and factors to consider like income, expenses, capitalization rates, and recent comparable sales. The goal is to help hotel owners understand opportunities to reduce property tax burdens through the appeals process during difficult economic times.
The document discusses a seminar presented by the International Association of Assessing Officers Los Angeles Chapter on separating real property, personal property, and intangible business assets. It introduces the two speakers, Robert Dietrich and Justin Glasser, who are experienced commercial real estate appraisers. It provides details on their professional qualifications and experience with complex appraisal assignments. The seminar aims to help appraisers and assessing officers properly identify and treat real property, personal property, and intangible assets when conducting appraisals of business properties.
TCAD - Travis Central Appraisal District reappraisal plan 2015 - 2016John Anderson
The document outlines Travis Central Appraisal District's reappraisal plan for tax years 2015-2016. It discusses the requirements under the Texas Property Tax Code for developing a biennial written reappraisal plan. The plan details the appraisal district's responsibilities, analyses, methods, and activities for reappraising all property within its boundaries at least once every three years, including identifying properties, property characteristics, market areas, valuation methods, and conducting a final performance analysis.
Talking ME / Talking YOU / Talking WE - > (Y)OUR BUBBLEWico Mulder
Zie info op de website van De Geneeskundestudent https://degeneeskundestudent.nl/talking-medicine/
“In his latest book, Dan Siegel explores a pathway toward a more sustainable way of being humans facing the multiple pandemics of our times together. Synthesizing insights from a range of disciplines and ways of knowing, he argues for expanding, evolving the notion of the self, from an isolated and separate ‘me’ to a relational, awe-embracing integrated sense—called, in his intriguing coinage, ‘MWe.’ I know of no more encouraging prescription for what ails us at this time.”
This document provides guidance for the Navy's CPO 365 program for developing and training First Class Petty Officers to become Chief Petty Officers. It outlines two phases for CPO 365: Phase 1 focuses on year-round leadership development for all FCPOs, while Phase 2 provides final training and preparation for those selected to become CPOs, culminating in a Final Test and pinning ceremony. The guidance emphasizes consistent leadership training throughout the year rather than an abrupt change once selections are made. It also stresses safety, family involvement, and preparing FCPOs to become the respected senior enlisted leaders of tomorrow.
This citizen petition requests that the FDA take action against SmileDirectClub (SDC) for misbranding its plastic teeth aligner and dental impression material products. It alleges that by selling these products directly to consumers without valid prescriptions, SDC is violating the "by prescription only" restriction placed on these devices by the FDA and misbranding them. The petition requests that the FDA seek injunctions against SDC's sales, seize misbranded products, levy civil penalties, and require a recall of affected products. It argues that SDC's approach fails to meet standards of care for orthodontic treatment and places consumers' health at risk to protect commercial interests.
This document summarizes a presentation about hotel valuation given by Tim Wilmath. It discusses different hotel types and performance levels (under-performing, exceeding expectations, operating as expected). It notes that when a hotel is operating as expected, it does not present many valuation challenges. It explores reasons why some hotels succeed while others fail, noting the importance of having a market, competence, and passion. Specific hotel examples from Nashville and Orlando are discussed. The importance of these same factors - market, competence, and passion - are related to succeeding in one's work.
Hospitality Law Conference 2010 - What Lawyers & Operators Need to know about...HospitalityLawyer.com
This document provides an overview of tax reassessment appeals for hotels. It discusses how the economic downturn has impacted hotel values and incomes, increasing pressure on owners to appeal property tax assessments. The presentation covers different types of taxes hotels pay, challenges assessors face in valuing hotels, and methodology for separating real estate value from business value. It also outlines hotel tax appeal processes and strategies, including common valuation approaches and factors to consider like income, expenses, capitalization rates, and recent comparable sales. The goal is to help hotel owners understand opportunities to reduce property tax burdens through the appeals process during difficult economic times.
The document discusses a seminar presented by the International Association of Assessing Officers Los Angeles Chapter on separating real property, personal property, and intangible business assets. It introduces the two speakers, Robert Dietrich and Justin Glasser, who are experienced commercial real estate appraisers. It provides details on their professional qualifications and experience with complex appraisal assignments. The seminar aims to help appraisers and assessing officers properly identify and treat real property, personal property, and intangible assets when conducting appraisals of business properties.
TCAD - Travis Central Appraisal District reappraisal plan 2015 - 2016John Anderson
The document outlines Travis Central Appraisal District's reappraisal plan for tax years 2015-2016. It discusses the requirements under the Texas Property Tax Code for developing a biennial written reappraisal plan. The plan details the appraisal district's responsibilities, analyses, methods, and activities for reappraising all property within its boundaries at least once every three years, including identifying properties, property characteristics, market areas, valuation methods, and conducting a final performance analysis.
The document discusses different types of hotels and resorts according to the Philippines Department of Tourism, including definitions and examples. It also examines hotel rating systems, management contracts, and the concept of timesharing. The highest hotel rating under common international systems is 5 stars, though some claim higher ratings for marketing purposes.
The document provides information on strategies for increasing hotel room sales. It recommends pricing rooms according to their unique features to allow for upselling opportunities. It also suggests improving the hotel's curb appeal and using changing room price signs to draw in guests. Empowering front desk clerks to negotiate on price is recommended when occupancy is low, as travelers expect negotiation opportunities. The strategies aim to increase room sales and occupancy rates through creative pricing, property improvements, and negotiation flexibility.
Careers of hospitality industry (Manish pajiyar)manish pajiyar
The document discusses careers in the hospitality industry. It begins by introducing different industry segments including hotels, food service, travel, tourism, and supporting industries. It then discusses the various operational, supervisory, and management positions available within hotels, food service, travel, tourism, and related fields. Examples of common career paths and job opportunities are provided for each industry segment. The document also covers hotel classification based on location, size, target market, level of service, ownership/affiliation, star rating, length of stay, and theme.
Hotels can be classified in several ways, including by ownership, price, size, location, amenities, and star rating. Some common classifications include independently owned hotels, hotel chains, franchises, limited service hotels, full service hotels, resorts, airport hotels, motels, heritage hotels, timeshares/condominiums, boutique hotels, all-suite hotels, and convention hotels. Hotels are also rated from one to five stars based on facilities and services offered.
Optimizing the customer experience. an opportunity for the hotel and hospital...Markus Mueller
More effective management of the customer experience is an opportunity area for operators in the hotel and hospitality sector to do more to differentiate their business through the customer experience. It has the potential to help customer retention, create better internal alignment of actions, identify cost savings, and drive incremental revenue growth. The practical first step towards achieving these goals is Customer Journey Mapping.
The document discusses various aspects of hotel sizes, ownership, and management. It begins by outlining common hotel size classifications based on number of rooms, ranging from small (1-150 rooms) to mega (1501+ rooms). Larger hotels necessitate more specialized management positions and higher management salaries. Hotels can be independently owned, part of a chain, or franchisees. Chains offer benefits like brand recognition and centralized reservation systems. Hotels are also classified by target market and level of service.
a presentation to explain the term room tariff, the basis of charging tariff, factors that make the rate go up or down. Also, the importance of tariff in success of a hotel in financial terms. Revenue management introduction.
The document discusses hotel classification systems. It provides information on what classification is and why it is important for hotels. The key points made are:
1. Classification involves grouping similar hotels together based on common standards and quality levels. This allows travelers to easily understand what facilities to expect.
2. Classification provides benefits to hotels, travelers, intermediaries, and destinations. It helps hotels with marketing, benchmarking and improving their offerings. Travelers can readily compare options. Intermediaries like it for purchasing processes. Destinations use it in promotions.
3. There are different types of classification systems worldwide, but they commonly involve mandatory criteria for standards, optional criteria, and inspections or reviews to determine the classification.
The slide is designed to be used by students who are starting to learn in an educational Institute.
It deals with Front Office Operations & Management.
14º Workshop Trend - Texto de apoio - Revenue Management Elizabeth Wada
Revenue Management techniques in hospitality industry –
A comparison with reference to star and Economy Hotels
Vani Kamath*, Shweta Bhosale* and Dr.Pradip Manjrek
This document summarizes key findings from an international study on strategies for hotels to survive an economic downturn. The study's main recommendations are: (1) don't panic and be strategic instead of broadly discounting rates; (2) maintain marketing efforts focused on existing customers; and (3) consider rate-obscuring practices or adding value through packages to attract customers without lowering rates. The study also advises hotels to prepare contingency plans in advance and not reduce service quality even if costs must be cut elsewhere.
The document summarizes the performance of different subsectors in the hospitality industry based on a benchmarking study. Some key findings:
- All subsectors performed below targets in areas like welcome, warmth, personality, skills and creating a sense of value. Too much emphasis on training systems over guest experience.
- Accommodation businesses only achieved a 77.68% welcome score. Being welcome requires exhibiting behaviors that make people feel welcome, not just saying hello.
- Drink-led sectors offered the best perceived value while food-led teams appeared over-trained in the wrong things and lacked personality.
- Only 5-star hotels achieved 90% in reflections, benefiting more from reputation than behaviors. Different
Combined presentation of student reports and the lectures on Lodging and Accommodation for the subject Principles of Tourism II for the College of International Tourism and Hospitality Management of the Lyceum of The Philippines Cavite, Campus. All photographs are grabbed from the internet and credit is due to their respective photographers.
Hotels can be classified in various ways such as by star rating, size, location, clientele, ownership, levels of service, and duration of stay. Star ratings typically range from 1 to 5 stars and indicate the amenities and quality of service offered. Hotel size is defined as small (under 25 rooms), average (25-99 rooms), above average (100-299 rooms), and large (over 299 rooms). Location includes downtown, suburban, airport, resort, and other categories. Ownership can be franchise, management contract, or independent. Higher star ratings and more luxurious amenities generally correspond to higher levels of service and longer, more resort-style stays.
This document provides an overview and guidelines for the Certificate in Hotel Management course offered by Yangon Management Training School. It includes information about the founder Daw Khin Yee Mon Thant's qualifications and outlines the chapters to be covered: Hotel Management Introduction and Front Office Management; Hotel Human Resource Management; Client, Customer Service & Relationship Management, and Customer Communication Management; and Operation Management. It also summarizes key concepts about the hospitality industry, different types and levels of hotels, classifying hotel guests, the core values of hospitality, and the four stages of the guest cycle.
This document contains an examination paper for managing lodging operations. It includes three sections:
Section A contains multiple choice and short answer questions testing objective knowledge of lodging operations concepts.
Section B presents two case studies requiring analysis of strategies to maximize profits at a luxury hotel and create a positive organizational climate.
Section C asks longer questions about quality award programs, management approaches, and developing a marketing plan.
Quality assurance is an essential part of hospitality businesses to ensure standards are met. Award-winning hotels have quality assurance systems in place monitored by trained staff and focus on constant improvement. Key quality assurance methods used in hospitality include star ratings, awards, reviews and customer satisfaction surveys to evaluate performance and enhance quality over time. Maintaining quality is important to retain customers, revenue and prevent losses from poor service.
Valuation of Fractured Condos - Converted from ApartmentsTim Wilmath
This article describes the valuation of "fractured condos", which is when an apartment complex is converted to condos, but then fails to sell out and some units are owned while others are rented.
Value Interrupted - Will the Real Estate Market Weather the PandemicTim Wilmath
This document discusses how the COVID-19 pandemic disrupted the real estate market globally. It describes how various economic indicators like GDP, stock markets, and hotel occupancy dropped sharply in early 2020 due to lockdowns and business closures. Transaction data for hotels showed prices plummeted. Retail and restaurants were hit hard by closures and the rise of online shopping. However, the residential market remained strong with rising home prices. By late 2020, some markets began recovering as restrictions eased and stimulus took effect, but long term impacts on sectors like office and retail remained uncertain.
The document discusses different types of hotels and resorts according to the Philippines Department of Tourism, including definitions and examples. It also examines hotel rating systems, management contracts, and the concept of timesharing. The highest hotel rating under common international systems is 5 stars, though some claim higher ratings for marketing purposes.
The document provides information on strategies for increasing hotel room sales. It recommends pricing rooms according to their unique features to allow for upselling opportunities. It also suggests improving the hotel's curb appeal and using changing room price signs to draw in guests. Empowering front desk clerks to negotiate on price is recommended when occupancy is low, as travelers expect negotiation opportunities. The strategies aim to increase room sales and occupancy rates through creative pricing, property improvements, and negotiation flexibility.
Careers of hospitality industry (Manish pajiyar)manish pajiyar
The document discusses careers in the hospitality industry. It begins by introducing different industry segments including hotels, food service, travel, tourism, and supporting industries. It then discusses the various operational, supervisory, and management positions available within hotels, food service, travel, tourism, and related fields. Examples of common career paths and job opportunities are provided for each industry segment. The document also covers hotel classification based on location, size, target market, level of service, ownership/affiliation, star rating, length of stay, and theme.
Hotels can be classified in several ways, including by ownership, price, size, location, amenities, and star rating. Some common classifications include independently owned hotels, hotel chains, franchises, limited service hotels, full service hotels, resorts, airport hotels, motels, heritage hotels, timeshares/condominiums, boutique hotels, all-suite hotels, and convention hotels. Hotels are also rated from one to five stars based on facilities and services offered.
Optimizing the customer experience. an opportunity for the hotel and hospital...Markus Mueller
More effective management of the customer experience is an opportunity area for operators in the hotel and hospitality sector to do more to differentiate their business through the customer experience. It has the potential to help customer retention, create better internal alignment of actions, identify cost savings, and drive incremental revenue growth. The practical first step towards achieving these goals is Customer Journey Mapping.
The document discusses various aspects of hotel sizes, ownership, and management. It begins by outlining common hotel size classifications based on number of rooms, ranging from small (1-150 rooms) to mega (1501+ rooms). Larger hotels necessitate more specialized management positions and higher management salaries. Hotels can be independently owned, part of a chain, or franchisees. Chains offer benefits like brand recognition and centralized reservation systems. Hotels are also classified by target market and level of service.
a presentation to explain the term room tariff, the basis of charging tariff, factors that make the rate go up or down. Also, the importance of tariff in success of a hotel in financial terms. Revenue management introduction.
The document discusses hotel classification systems. It provides information on what classification is and why it is important for hotels. The key points made are:
1. Classification involves grouping similar hotels together based on common standards and quality levels. This allows travelers to easily understand what facilities to expect.
2. Classification provides benefits to hotels, travelers, intermediaries, and destinations. It helps hotels with marketing, benchmarking and improving their offerings. Travelers can readily compare options. Intermediaries like it for purchasing processes. Destinations use it in promotions.
3. There are different types of classification systems worldwide, but they commonly involve mandatory criteria for standards, optional criteria, and inspections or reviews to determine the classification.
The slide is designed to be used by students who are starting to learn in an educational Institute.
It deals with Front Office Operations & Management.
14º Workshop Trend - Texto de apoio - Revenue Management Elizabeth Wada
Revenue Management techniques in hospitality industry –
A comparison with reference to star and Economy Hotels
Vani Kamath*, Shweta Bhosale* and Dr.Pradip Manjrek
This document summarizes key findings from an international study on strategies for hotels to survive an economic downturn. The study's main recommendations are: (1) don't panic and be strategic instead of broadly discounting rates; (2) maintain marketing efforts focused on existing customers; and (3) consider rate-obscuring practices or adding value through packages to attract customers without lowering rates. The study also advises hotels to prepare contingency plans in advance and not reduce service quality even if costs must be cut elsewhere.
The document summarizes the performance of different subsectors in the hospitality industry based on a benchmarking study. Some key findings:
- All subsectors performed below targets in areas like welcome, warmth, personality, skills and creating a sense of value. Too much emphasis on training systems over guest experience.
- Accommodation businesses only achieved a 77.68% welcome score. Being welcome requires exhibiting behaviors that make people feel welcome, not just saying hello.
- Drink-led sectors offered the best perceived value while food-led teams appeared over-trained in the wrong things and lacked personality.
- Only 5-star hotels achieved 90% in reflections, benefiting more from reputation than behaviors. Different
Combined presentation of student reports and the lectures on Lodging and Accommodation for the subject Principles of Tourism II for the College of International Tourism and Hospitality Management of the Lyceum of The Philippines Cavite, Campus. All photographs are grabbed from the internet and credit is due to their respective photographers.
Hotels can be classified in various ways such as by star rating, size, location, clientele, ownership, levels of service, and duration of stay. Star ratings typically range from 1 to 5 stars and indicate the amenities and quality of service offered. Hotel size is defined as small (under 25 rooms), average (25-99 rooms), above average (100-299 rooms), and large (over 299 rooms). Location includes downtown, suburban, airport, resort, and other categories. Ownership can be franchise, management contract, or independent. Higher star ratings and more luxurious amenities generally correspond to higher levels of service and longer, more resort-style stays.
This document provides an overview and guidelines for the Certificate in Hotel Management course offered by Yangon Management Training School. It includes information about the founder Daw Khin Yee Mon Thant's qualifications and outlines the chapters to be covered: Hotel Management Introduction and Front Office Management; Hotel Human Resource Management; Client, Customer Service & Relationship Management, and Customer Communication Management; and Operation Management. It also summarizes key concepts about the hospitality industry, different types and levels of hotels, classifying hotel guests, the core values of hospitality, and the four stages of the guest cycle.
This document contains an examination paper for managing lodging operations. It includes three sections:
Section A contains multiple choice and short answer questions testing objective knowledge of lodging operations concepts.
Section B presents two case studies requiring analysis of strategies to maximize profits at a luxury hotel and create a positive organizational climate.
Section C asks longer questions about quality award programs, management approaches, and developing a marketing plan.
Quality assurance is an essential part of hospitality businesses to ensure standards are met. Award-winning hotels have quality assurance systems in place monitored by trained staff and focus on constant improvement. Key quality assurance methods used in hospitality include star ratings, awards, reviews and customer satisfaction surveys to evaluate performance and enhance quality over time. Maintaining quality is important to retain customers, revenue and prevent losses from poor service.
Valuation of Fractured Condos - Converted from ApartmentsTim Wilmath
This article describes the valuation of "fractured condos", which is when an apartment complex is converted to condos, but then fails to sell out and some units are owned while others are rented.
Value Interrupted - Will the Real Estate Market Weather the PandemicTim Wilmath
This document discusses how the COVID-19 pandemic disrupted the real estate market globally. It describes how various economic indicators like GDP, stock markets, and hotel occupancy dropped sharply in early 2020 due to lockdowns and business closures. Transaction data for hotels showed prices plummeted. Retail and restaurants were hit hard by closures and the rise of online shopping. However, the residential market remained strong with rising home prices. By late 2020, some markets began recovering as restrictions eased and stimulus took effect, but long term impacts on sectors like office and retail remained uncertain.
Estimating the Value of Sports Facilities.pdfTim Wilmath
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help boost feelings of calmness, happiness and focus.
A Brief History of Intangibles in Ad Valorem Taxation.pdfTim Wilmath
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
Everything you ever Wanted to Know about Florida Property Tax Exemptions.pdfTim Wilmath
The document provides an overview of various property tax exemptions available to Florida property owners, including:
- Military exemptions such as a $5,000 exemption for veteran disability and a 100% exemption for totally disabled veterans.
- Special exemptions like those for historical, religious/charitable, and government properties.
- General exemptions including a $50,000 homestead exemption, portability, and exemptions for seniors, widows/widowers, blind persons, and those with disabilities.
- The document directs readers to an exemption summary and statutes for more details on eligibility requirements for each exemption.
Covid 19 and Hotel and Restaurant Valuation.pdfTim Wilmath
The document summarizes the impact of Covid-19 on the hotel and restaurant industries based on a 2021 webinar presentation. It notes that:
1) Both industries were performing well before the pandemic but saw steep declines in sales and occupancy during the pandemic.
2) Projections estimate it will take the hotel industry 3-4 years to fully recover, with values projected to decline by 14-30% in 2020.
3) The restaurant industry was even more severely impacted with a 37% decline in sales volumes in 2020 and many bankruptcy filings.
4) Both industries are slowly recovering as restrictions ease but uncertainties remain around potential future shutdowns.
Everything you want to know about Property Tax Assessments.pdfTim Wilmath
The document provides an overview of the property tax assessment process in Palm Beach County, Florida. It discusses the county's demographics and introduces the property appraiser, Tim Wilmath. It then covers the history of property taxes in Florida dating back to 1839, important dates in the assessment cycle, how property values are calculated, and the property appraiser's responsibilities in maintaining ownership records and valuing properties.
Supersize Me! - The Valuation of Corporate HQ.pdfTim Wilmath
This document summarizes a presentation about valuing large corporate campuses and headquarters properties. It discusses which valuation approaches are best for different types and generations of these properties. For unique, first generation headquarters built for a specific company, the cost approach often provides the most reliable value since the market prices these based on replacement cost. Older, second generation properties that become vacant are best valued using sales comparison and income approaches when converted to multi-tenant use. Large size alone does not cause obsolescence if the property serves its intended function for the occupant.
Understanding Intangible Assets and Real EstateTim Wilmath
This document provides an overview of intangible assets and how they relate to real estate valuation. It discusses how intangible assets are identified and the legal tests used. There are typically two circumstances where assessors encounter intangible value: 1) when a property sells and intangible assets are included in the price, along with real and personal property, and 2) when income from a business is used to value real estate in an income approach for property types like hotels and nursing homes. The document then examines the accounting, business, and real estate purposes for allocating intangible assets. Finally, it reviews methods for estimating intangible value, including the cost, market, and income approaches.
The Valuation of Senior Care Properties.pdfTim Wilmath
This presentation describes the valuation of Senior Care Properties for assessment purposes. I weaved stories about my Mother in Law, Lily Berrier into the presentation. She suffered from Alzheimer's disease and eventually had to go into assisted living and then a nursing home. Those personal experiences helped me craft this presentation.
This document summarizes the history of Palm Beach County from its earliest Native American inhabitants through its modern development. It traces the influx of European settlers in the 1500s and the establishment of Palm Beach in the late 1800s by Henry Flagler who introduced the railroad. It highlights the growth of cities like West Palm Beach and the development of exclusive areas like Palm Beach and Worth Avenue. The document also discusses the expansion of agriculture in western Palm Beach County and the effects of hurricanes. Throughout, it contrasts historical photos showing the areas as they were in the early 1900s with how they appear today.
Understandinhg Intangible Assets and Real Estate: A Guide for Real Property ...Tim Wilmath
In most U.S. jurisdictions, assessors are responsible for estimating a market value for real property and/or personal property. Laws can vary from state to state, but for the majority of jurisdictions, intangible assets are not taxable, at least not as part of the real estate assessment. As a result, assessors must ensure their real estate assessments are free of any intangible value. Different interpretations of law and proper appraisal approaches for valuing intangibles sometimes result in disputes between taxpayers and assessors. Unfortunately, the identification and valuation of intangible assets is unsettled in the appraisal and assessment community. This guide is intended to assist assessors in understanding and addressing intangible assets in property tax valuation.
This document discusses the concept of highest and best use as it relates to property appraisal. It defines highest and best use as "what most people would do, most of the time" with their property. There are two types of highest and best use: as-vacant and as-improved. Determining the highest and best use is important for selecting comparable properties and adhering to appraisal standards. The document provides examples of analyzing the highest and best use for various hypothetical properties.
The document describes different types of houses lived in by notable people. It starts by asking what kind of house the reader lives in, then provides details on Paul Revere's house from 1770 that was already 90 years old at the time. It briefly mentions houses owned by Bill Gates, Michael Jordan, and Tiger Woods before concluding.
AVRUPA KONUTLARI ESENTEPE - ENGLISH - Listing TurkeyListing Turkey
Looking for a new home in Istanbul? Look no further than Avrupa Konutlari Esentepe! Our beautifully designed homes provide the perfect blend of luxury and comfort, making them the perfect choice for anyone looking for a high-quality home in the city.
With a wide range of apartment types available, from 1+1 to 4+1, we have something to suit every need and budget. Each apartment is designed with attention to detail and features spacious and bright living areas, making them the perfect place to relax and unwind after a long day.
One of the things that sets Avrupa Konutlari Esentepe apart from other developments is our focus on creating a community that is both comfortable and convenient. Our homes are surrounded by lush green spaces, perfect for enjoying a peaceful stroll or having a picnic with friends and family. Additionally, our complex includes a variety of social and recreational amenities, such as swimming pools, sports fields, and playgrounds, making it easy for residents to stay active and socialize with their neighbors.
https://listingturkey.com/property/avrupa-konutlari-esentepe/
Sense Levent Kagithane Catalog - Listing TurkeyListing Turkey
Sense Levent offers a luxurious living experience in the heart of Istanbul’s vibrant Levent district.
This cutting-edge development seamlessly integrates modern design with natural elements, featuring live evergreen plants maintained by an advanced irrigation system, ensuring lush greenery year-round.
The building’s elegant ceramic balconies are both stylish and durable, enhancing the overall aesthetic and functionality. Residents can enjoy the 700m Sky Lounge, which provides breathtaking views of Istanbul and a perfect space to relax and unwind.
Sense Levent promotes a healthy and active lifestyle with a full gym, swimming pool, sauna, and steam room, all available in the building. The interiors are crafted with high-quality materials, ensuring a luxurious and inviting living space.
Designed with young professionals in mind, Sense Levent features 1+1 and 2+1 units with smart floor plans and balconies. The project promises high investment returns, with an expected annual return of 6.5-7%, significantly above Istanbul’s average ROI.
Located in the rapidly growing and highly desirable Levent area, the development benefits from ongoing urban regeneration projects. Its prime location offers proximity to shopping malls, municipal buildings, universities, and public transportation, adding immense value to your investment.
Early investors can take advantage of discounted units during the construction phase, with an expected capital appreciation of +45% USD upon completion. Property Turkey provides comprehensive rental management services, ensuring a seamless and profitable investment experience.
Additionally, robust legal support and significant tax advantages are available through Property Turkey’s licensed Real Estate Investment Fund. Levent is a dynamic urban hub, ideal for young professionals with its numerous corporate headquarters and shopping malls.
Sense Levent is more than just a residence; it’s a place where dreams and opportunities come to life. Contact us today to secure your place in this exclusive development and experience the best of Istanbul living. Sense Levent: Sense the Opportunity. Live the Dream.
https://listingturkey.com/property/sense-levent/
If you're Planning to Build a House in Haldwani, Understanding the House Construction Cost in Haldwani is crucial. It's important to grasp the direct and indirect cost factors entailed in the Construction process before Initiating any work. This Understanding is pivotal for Efficient Budget allocation, allowing you to plan your finances more Effectively. Construction expenses can vary Significantly, Influenced by Diverse Elements such as site Location, raw material prices, Labour charges, and various other variables. Here at Geomatrix, we pride Ourselves on offering competitive rates for house construction in Haldwani, ensuring affordability without Compromising on quality and providing the best options within your budget. For a precise evaluation of the cost involved in constructing your dream home, consult our team of architects and construction experts.
For more information visit:
https://geomatrix.co.in/services/real-estate-project-management-in-haldwani/
Discover Yeni Eyup Evleri 2, nestled among the rising values of Eyupsultan, offering the epitome of modern living in Istanbul.
With its spacious living areas, contemporary architecture, and meticulous details, Yeni Eyup Evleri 2 is poised to be the star of your happiest moments. Situated in the new favorite district of Eyupsultan, claim your spot and unlock the doors to a peaceful life alongside your loved ones. Nestled next to the historical and natural beauties of Eyupsultan, embrace the comfort of modern living and rediscover life.
Social Amenities:
Yeni Eyup 2 offers a life filled with joy with its green landscaping areas, gym, sauna, children’s play areas, café, outdoor pool, and basketball court. Reserve your place for unforgettable moments!
Reliable Structure:
With 1+1, 2+1, and 3+1 apartment options, Yeni Eyup Evleri 2 is designed with first-class materials and craftsmanship. The doors to a safe and comfortable life are here! Choose the option that suits you best and step into your dream home.
Project:
Yeni Eyup 2 is conveniently located, with Istanbul Airport just 26 minutes away, the Mecidiyeköy Metro Line 4 minutes away, and the Tram Stop 5 minutes away, making your life easier with its central location.
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1. The Mass Appraisal of Hotels
BY TIM WILMATH, MAI, AND KEN ENGEL, CFE
T he mass appraisal technique was
developed to enable assessors to
accomplish the challenging task of esti-
is possible through the use of regression
analysis or ranking analysis.
mating a value for each of the thousands Hotel Segmentation
of properties in their jurisdictions. The The first step in the mass appraisal of
IAAO defines mass appraisal as: “The hotels is to segment them into different
process of valuing a group of properties categories. The best way to do this is to
as of a given date using common data, follow industry classifications. In general
standardized methods, and statistical all hotels can be put into one of the fol-
testing.” (IAAO 1999) In plain English, lowing categories:
mass appraisal is simply the automation
• Resort
of the single-property appraisal ap-
proach. Many property types are ideal for • Luxury
the application of mass appraisal, such as
• Full Service
single family homes. However, because
of the complexities involved in valuing • Limited Service
hotels, many assessors find themselves
• Extended Stay (also known as
performing single-property appraisals
all-suite)
rather than utilizing mass appraisal.
With reliable data, the assessor can • Convention Hotels
create mass appraisal models that incor-
porate all of the elements that make up Resort Hotels
a hotel’s value. Creating income models Resort hotels are generally distinguished
can be accomplished by utilizing local through their use of special recreational
data and industry sources. Cost models facilities. For example, a golf resort, as the
can be created using the Marshall & Swift name implies, would offer its guests access
cost manuals (annual). Creating sales to a golf course, a pro shop, and usually the
comparison approach models can be dif- option of taking lessons. A health resort
ficult due to the lack of sales; however, it may offer extensive facilities with exercise
Tim Wilmath, MAI, is Director of Valuation Process for the Hillsborough County Property
Appraiser’s Office in Tampa Florida.
Ken Engel, CFE, is a Commercial Analyst with the Hillsborough County Property Appraiser’s
Office.
Journal of Property Tax Assessment and Administration • Volume 2, Issue 1 15
2. themselves through impeccable facilities
and extensive concierge and personal
guest services.
Full Service Hotels
Photo courtesy of Saddlebrook Resort, Tampa, FL
equipment, trainers, therapeutic massages, Full service hotels differentiate them-
and various other health-related amenities. selves from limited service hotels by
The objective of these hotels is to make offering in-house dining facilities and
their facilities an end destination, and not cocktail lounges, and by providing a
necessarily dependent on other attractions wider range of amenities like swimming
in the area to draw guests. Most resort ho- pools and fitness centers. Many cater
tels offer extensive amenities in addition to business travelers and have on-site
to those that support their theme, such as meeting rooms or conference centers.
indoor and outdoor swimming pools, sau- Business amenities like desks and Inter-
nas, spas, exercise facilities, restaurants and net access may be provided in rooms.
lounges, and on-site retail shopping.
Limited Service Hotels
Luxury Hotels
The goal of limited service hotels is to
A luxury hotel is a full service hotel with provide a clean, comfortable room at
exceptional amenities, rooms, and service. an affordable rate. They do not provide
They generally are not theme oriented, but full dining facilities. Some have small
many offer day spas and tennis facilities kitchens and may offer free breakfast
as part of their amenity packages. They for guests. They cater to families, leisure
often provide a multitude of luxurious travelers, and budget conscious business
amenities including elegant rooms and travelers. Many are affiliated with a na-
fine dining opportunities. They usually tional chain. Amenities are limited but
contain a choice of restaurants and may may include a pool. These hotels usually
offer on-site shopping facilities as well. have fewer and smaller rooms than full
The finest of these hotels distinguish service hotels.
16 Journal of Property Tax Assessment and Administration • Volume 2, Issue 1
3. Extended Stay or Suite Hotels Quality Classes
Individual hotels within each of these
segments can be further subdivided
into quality classes. These classes should
reflect location, condition, age, ameni-
ties, and overall quality. For example, a
class “A” property usually has the most
desirable location, generally receives the
highest income, is typically newer, and
contains extensive amenities and supe-
rior construction quality and condition.
A class “B” hotel may be slightly older
These hotels are designed to appeal to or less maintained, lack some of the
travelers who need accommodations amenities, and/or may have an inferior
for a week at a time. The amenities are location and income to its class “A” coun-
more like those found in an apartment terpart. A class “C” hotel may be another
such as fully equipped kitchens. They level lower in these attributes.
usually do not have a restaurant but may
have a small commercial kitchen for Approaches to Value—Mass
breakfast preparation. The better-quality
Appraisal
properties are generally affiliated with
a national chain. They typically charge Of the three approaches to value, the in-
weekly rates that are below those of com- come approach is the preferred method
parable full service hotels. to value hotels. The price a buyer is will-
ing to pay for a hotel property is directly
Convention Hotels tied to its income potential. Although
the sales comparison approach and cost
approach serve important functions in
the hotel valuation process, ultimately
the income approach is given the most
weight.
In mass appraisal, the three approach-
es to value are applied through the use of
“models.” Models are intended to simu-
late market behavior. After reviewing all
available data, these models are created
and then applied across classes of hotels.
This method of assigning models to hotel
Photo courtesy of Saddlebrook Resort, Tampa, FL properties can result in a reliable and
equitable assessment.
Convention hotels, as one might expect,
Income Approach
are usually located near convention cen-
ters. They generally have a large number For most commercial properties, the
of rooms. Since they are geared for meet- income approach can be used to esti-
ing groups, they usually contain ample mate value by capitalizing rental income.
meeting space and banquet facilities. However, capitalizing hotel rent is not
They typically have several restaurants possible because entire hotels are not
and lounges, with some providing leased. In addition, a hotel earns its rev-
nighttime entertainment. They gener- enue not only from room rental but also
ally provide ample business and leisure from food and beverage sales, and mis-
amenities. cellaneous services such as telephone,
Journal of Property Tax Assessment and Administration • Volume 2, Issue 1 17
4. laundry, and fitness centers, for example. accomplished within a mass appraisal
For hotels, these revenues and the asso- model.
ciated expenses can be used to measure To create mass appraisal models for
the value of the entire operation, or what hotels using the income approach, four
is known as the going concern. key items are required: an estimate of
The going concern includes the gross revenue, occupancy, expenses, and
value of the real estate, the value of the a capitalization rate. Once obtained, this
personal property, and the value of the data can be used for each of the five hotel
business. The real estate derives value classes. The following are sources that
from its location and ability to house can be employed to estimate income,
guests. The personal property derives occupancy, and expenses:
value by allowing the owner/manager to • Actual income submitted by the
generate revenue from its use, and the taxpayer
business derives value from its ability to
successfully run the entire operation. • PKF—Trends in the Hotel Industry
These three items are needed for a (annual)
hotel to operate successfully. Since busi- • Smith Travel Research (STR)—
ness value is not assessed and personal The Host Study (annual)
property is usually assessed separately, it
is necessary to exclude these items from • State sales tax records
the final assessment. To accomplish this,
the value of the entire going concern is Actual Income and Expenses
estimated and then allocated to each of Actual income and expense statements
its three components. This task can be submitted by the taxpayer are the best
Figure 1. Typical Hotel Income and Expense Statement
18 Journal of Property Tax Assessment and Administration • Volume 2, Issue 1
7. include average daily rates, number of Capitalization Rates
hotel rooms, and the top hotels versus An important component of the direct
average hotels. In addition, revenue is capitalization process is the estimate of
further stratified by room revenue, food the capitalization rate (cap rate). Two
and beverage income, telecommunica- techniques are suggested for estimating
tions income, and miscellaneous revenue. cap rates for hotels.
Expenses are similarly segregated.
For modeling purposes, the data • Extraction from sales
from PKF’s Trends should be adjusted to • Industry surveys
exclude property taxes and include an Extracting capitalization rates from
estimate of reserves for replacements. hotel sales provides a good indication
A sample page from the Trends report is of local activity. Sales of hotels are com-
shown in figure 2. plicated by the potential inclusion of
personal property and/or business value.
Smith Travel Research The recorded sales price may or may not
Smith Travel Research sells a variety of reflect consideration for the real estate
publications related to hotel performance. only. Often purchasers perform sales
One of the most helpful to appraisers is price allocations (separating real estate,
The Host Study. This report provides in- personal property, and business) for in-
come and expense items broken down by come tax purposes. Unfortunately, there
hotel type, geographic region, and other is rarely any indication on a deed whether
categories. A sample page from The Host a sales price has been allocated. Only
Study is shown in figure 3. through research and/or verification can
As with other income and expense in- the appraiser be sure what the recorded
formation, the data from The Host Study price included. Often these purchase
should be adjusted to exclude property details are reported in the Securities and
taxes. One difference between The Host Exchange Commission (SEC) filings or
Study and PKF’s Trends is that The Host a company’s annual report (such as the
Study includes a reserve for replacement excerpt from Highland Hospitality’s 2003
expense while Trends does not. annual report in figure 4).
Figure 4. Hotel Annual Report Describing Purchase Price Allocation
Journal of Property Tax Assessment and Administration • Volume 2, Issue 1 21
9. franchise fee are deducted from the net generating capability is attributable to
operating income, and the capitalized the business, not the real estate. The
value of these two fees is considered busi- difficulty in applying this technique
ness value (more on this approach later). comes in selecting truly comparable
This technique to isolate intangibles has hotels for comparison and confidently
been used successfully in many court attributing revenue differences to man-
cases and, in the authors’ experience, is agement versus location, condition, or
the best approach for excluding business other factors.
value in a mass appraisal model.
Proxy Method
Business Start-up Costs Method This approach imputes a rent for the
Also known as the Business Enterprise various profit centers (rooms, restau-
Approach, this theory suggests that in rants, laundry, retail space, and such).
addition to deducting a management This rent is then capitalized to obtain an
fee and franchise fee, a deduction estimate of value for each of these vari-
should be made to reflect the original ous areas. These individual estimates are
“start-up” costs the hotel incurred when then summed to obtain a total real estate
it was built. Start-up costs include assem- value estimate. Since few, if any, hotels
bling and training staff and marketing are leased in this fashion, it would be
the new hotel. The premise is that an difficult, if not impossible, to obtain rent
owner expects to recapture these costs comparables for the various profit cen-
throughout the life of the property and ters. The use of rent comparables from
therefore they should be amortized and other property types would probably not
deducted annually. be very reliable either because of the
Critics of this method argue that there unique nature of these services within
is no indication that a buyer would pay an the hotel environment. Capitalization
owner an additional sum for these costs rates and expenses for the various profit
because they are already present in the centers (under this lease assumption)
annual operating statement. Moreover, would be equally difficult to estimate.
for many hotels, the original workforce
that was assembled when the hotel was Business Value Summary
new no longer exists. Hotels historically Of the various options to measure busi-
have a very high employee turnover rate ness value, the authors’ jurisdiction uses
and they must advertise for, hire, and the Rushmore approach. This method
train a large portion of their workforce was chosen to measure and exclude
every year. Since the existing workforce intangibles because it is straightforward,
was likely assembled through expendi- easy to understand, and, in the authors’
tures in the annual operating budget, experience, the most defendable.
and therefore, already accounted for in As indicated previously, this approach
the income approach, critics charge that capitalizes the management fee and
deducting the original operating costs franchise fee to isolate the business
would represent double counting. value. The premise is that no one would
pay more for the business portion of the
Excess Profits Method hotel than the cost to replace it. The cost
This approach says that if a value en- of replacing business aspects is the cost
hancement is created due to a hotel’s of hiring a hotel management company
superior management, it can be mea- to run the hotel and affiliating with a
sured by comparing its revenue per known “brand.” Many companies and
available room (RevPAR) against its hotel chains such as Marriott, Hyatt, and
competition. The premise is that two Hilton provide these services. The cost
hotels being equal, any superior revenue of hotel management and chain affilia-
Journal of Property Tax Assessment and Administration • Volume 2, Issue 1 23
10. tion currently ranges from 3% to 10% of revenues. Since management fees are
total revenue (Pannell Kerr Forster 2004; based on a percentage of revenue, higher
Smith Travel Research 2004). revenues result in higher management
Using the Rushmore method, re- fees and ultimately a higher business
moving the value of the business from value allocation. Conversely, declining
the going concern is accomplished by revenues would lower the management
capitalizing the management fee and cost resulting in a lower business value
franchise fee, then deducting that value estimate.
from the value of the going concern. An There are many techniques for mea-
alternative method that accomplishes suring and removing business value.
the same result is to simply include the Capitalizing the management fee and
management fee and franchise fee in franchise fee, in the authors’ view, results
the operating expenses of the income in a value that replicates what an investor
model. The inclusion of these costs will would pay for a business. This method
reduce the net operating income (NOI) has seen acceptance in the courts and is
and effectively remove the business value widely used in the appraisal industry. In
from the final value. addition, it is fairly straightforward to
These two techniques are demonstrat- apply in the income approach and in a
ed in figure 6. While Method 2 results mass appraisal model.
in the same value for the real estate as
Method 1, several steps are saved by us- Personal Property
ing Method 2. A hotel requires significant personal
Another benefit of the Rushmore property to operate. This includes room
approach is that the business value al- furnishings, restaurant fixtures, and
location rises and falls with the success other miscellaneous furniture, fixtures,
or failure of management. Superior and equipment (FF&E). Since most per-
management is rewarded with higher sonal property is assessed separately from
Figure 6. Two Techniques for Removing the Business Value from the Going Concern Value
Method 1. Capitalizing Management Fee and Franchise Fee
Total Revenue $1,000,000
Total Expenses (excluding mgt. and franchise fee) $ 700,000
Net Operating Income $ 300,000
Capitalization Rate (includes tax rate) 12.0 %
Total Property Value $2,500,000
Business Value Calculation
Mgt. and Franchise Fee–8% of Revenue $ 80,000
Capitalization Rate (includes tax rate) 12.0%
Business Value $ 667,000
Value of Real Estate & FF&E ($2,500,000 - $667,000) $1,833,000
Method 2. Including Management Fee and Franchise Fee in Expenses
Total Revenue $1,000,000
Total Expenses (including mgt. and franchise fee) $ 780,000
Net Operating Income $ 220,000
Capitalization Rate (includes tax rate) 12.0%
Value of Real Estate & FF&E $1,833,000
24 Journal of Property Tax Assessment and Administration • Volume 2, Issue 1
11. annual basis to replace these items as
they reach the end of their useful lives
(similar to reserves for short-lived real
estate items). Although many hotel own-
ers do not show this expense on their
income statement, the appraiser or
assessor should assume these expenses
exist by imputing them in the income
approach.
“Return Of” and “Return On” are
terms often used to describe techniques
Photo courtesy of Saddlebrook Resort, Tampa, FL for removing the personal property from
the income approach of a going con-
the real estate, the value of the personal cern. “Return Of” is simply recapturing
property must be excluded from the final the FF&E through a reserve for replace-
assessment of the real estate. ment. If you have allowed an expense for
For states that assess personal prop- reserves of FF&E, you have accounted for
erty, allocating value to the personal the “Return Of.”
property is fairly easy, since it has already The “Return On” personal property is
been valued independently of the real a method of estimating the value of the
estate. Deducting the assessed value of FF&E by assigning a portion of the income
the FF&E from the income approach stream to the personal property and then
is appropriate and achieves the goal of capitalizing it to determine its contributory
separating its value from the real estate; value. For assessors, a quicker method to
however, one more step is required. remove the value of the personal property
A hotel’s personal property does not is to simply deduct its current assessment
last forever, and therefore, requires from the value of the going concern.
periodic replacement. A prudent Some practitioners argue that both the
owner would set aside monies on an assessed value of the FF&E and a “Return
Figure 7. 2004 Hillsborough County Hotel Models by Type and Quality
Journal of Property Tax Assessment and Administration • Volume 2, Issue 1 25
12. On” should be deducted in the income and overall quality should have similar
approach. The argument suggests that models assigned.
the FF&E contributes more than just its
assessed value because an owner expects Cost Approach
to make a profit on its use. However, this Although the income approach is the
profit has already been considered in the preferred method for estimating the
previous deduction for business value. value of a hotel, the cost approach still
The management fee and franchise fee serves an important function. For new
cover both the cost of operating the hotel hotels and as a check against other
and the personal property. Any business valuation methods, the cost approach
value resulting from the operation of provides the appraiser or assessor with
the FF&E has already been accounted an excellent alternative. The Marshall
for by capitalizing the management fee & Swift Valuation Service has a complete
and franchise fee. Deducting both the as- section on hotels, broken down by hotel
sessed value of the personal property and segment (limited service, full service,
a “Return On” that same property could and so on.) and quality class. Figure
be considered double counting. 8 is an excerpt from the commercial
In the authors’ opinion, imputing an manual.
expense for reserves for replacement of Most assessors’ Computer Assisted
the FF&E and deducting the personal Mass Appraisal systems (CAMA) utilize
property assessment sufficiently excludes the cost approach. In the authors’ ex-
the FF&E from the income approach. perience, the cost approach is the most
widely used approach in mass appraisal.
Reconciliation Critics of the cost approach will argue
Once all sources of income, occupancy, that depreciation is difficult to measure,
expenses, and capitalization rates have particularly in older buildings. Although
been compiled, models for each of the the measurement of depreciation can
classes of hotels can be created. Figure be challenging, the difficulties are not
7 provides an example of hotel models insurmountable. A significant differ-
for Hillsborough County, Florida, for the ence between the value calculated by the
2004 tax year. cost approach and that by the income
The total income for each of the mod- approach may indicate the presence of
els is intended to reflect what hotels in obsolescence.
each class would actually experience on One point worth mentioning—asses-
a stabilized basis. The expenses include sors should be wary of valuations that
reserves for replacement for both real es- contain external obsolescence in the
tate and personal property. The expenses cost approach and a deduction for busi-
also include a management fee and ness value in the income approach. It
franchise fee, which effectively removes is unlikely that an investor would pay a
any business value. After the models are premium for the business value of a hotel
applied, the personal property assess- suffering from external obsolescence.
ment should be deducted, resulting in
an estimate of only the real estate. Sales Comparison Approach
If available, using a hotel’s actual Aver- The sales comparison approach or
age Daily Room Rate (ADR) as a guide market approach is the most direct in-
will help the appraiser in assigning the dication of what a hotel would sell for.
correct model. Care should be taken However, it is probably the most difficult
to ensure a hotel’s actual ADR is stabi- of the three approaches to apply. Using
lized and is not affected by short-term this approach requires the appraiser or
issues such as remodeling. Hotels with assessor to:
similar locations, condition, amenities,
26 Journal of Property Tax Assessment and Administration • Volume 2, Issue 1
14. study can be useful. Not surprisingly, against the value determined by the in-
O’Neill’s models indicated that four key come approach.
factors affect the selling price of a hotel:
number of rooms, net operating income, Conclusion
average daily room rate, and occupancy. Hotels are one of the most difficult
His analysis indicates the importance of properties to value for appraisers and
the income approach for valuing these assessors alike. These properties are
property types. complicated by the fact that they are
In the absence of sufficient sales to a combination of real estate, personal
create mass appraisal models for hotels, property, and an operating business.
many assessors resort to single-property This article focused on the creation of
appraisal—essentially valuing one hotel mass appraisal models to value hotels.
at a time. Although this method is ac- These models can be created utilizing
ceptable, it can be time-consuming and readily available data and can be struc-
difficult. Assessors should consider a tured to exclude business value.
technique known as “ranking analysis.” Because hotels are typically bought and
(Appraisal Institute 2001) In ranking sold on their ability to generate revenue,
analysis, comparable sales are ranked the income approach is the preferred
in descending or ascending order. An approach to value. Data concerning
example from Hillsborough County is average daily room rates, occupancy,
shown in figure 9. After reviewing the expenses, and capitalization rates can be
sales, the assessor then determines the obtained from company financial reports
relative position of the subject in the and industry publications. This data can
array. The comparables are identified as be used to create mass appraisal income
either inferior or superior to bracket the models. Although less reliable than the
probable value range of the subject. income approach, the cost approach
The sales comparison approach is provides a valuable check against other
typically the best method to determine valuation methods. The cost approach
the probable sales price of a property. is particularly useful in new hotels and
However, with the lack of sufficient hotel lends itself very well to mass appraisal.
sales, this method is best used as a check Because of a lack of sufficient sales, the
Figure 9. Comparable Sales of Limited Service Hotels Ranked by Price Per Room
28 Journal of Property Tax Assessment and Administration • Volume 2, Issue 1
15. sales comparison approach is the least expense, occupancies, and profit data
adaptable to mass appraisal. The assessor nationwide. The price for this publica-
can use the “ranking analysis” method tion is approximately $295.00
to array sales, then bracket the subject STR—Smith Travel Research (www.
accordingly. Again, this approach should smithtravelresearch.com) publishes a
probably only be used as a check against report entitled The Host Study. Similar to
income-approach results. PKF’s Trends report, the Host Study pub-
There is an ongoing debate about lication provides in-depth survey results
how to separate the three aspects of for hotel income, expense, and other
a hotel property’s value, that of real benchmarks. The price for this publica-
estate, personal property, and the ongo- tion is approximately $295.00.
ing business. For personal property, it is Hospitality Internet Media, L.L.C.’s
the authors’ opinion that imputing an www.hotel-online.com is a Web site that
expense for reserves for replacement of reports all the latest news on hotels and
the FF&E and deducting the personal the lodging industry throughout the
property assessment sufficiently excludes United States. The Web site provides
the FF&E from the income approach. news articles, classified ads, and links to
Of the several methods presented for many other hotel-related Web sites. This
estimating business value, the authors’ Web site is free.
believe that the simplest and most effec- Korpacz Real Estate Investor Survey (www.
tive method for ensuring that business korpacz.com) provides capitalization
value is excluded from a hotel’s assess- rates and other market data, commentary,
ment is to include a management fee and and analysis on a variety of commercial
a franchise fee in the operating expenses properties including hotels. Published
of the income approach. quarterly by PriceWaterhouseCoopers, an
Uncredited photos and charts were provided annual subscription is $375.00.
by the authors. CB Richard Ellis National Investor Survey
(www.CBRE.com) is an annual publica-
Hotel Data Sources tion that reports capitalization rates for
15 class A, B, and C income-producing
This list of hotel data sources is by no
properties. The annual cost for the Inves-
means exhaustive. However, these re-
tor Survey is $100.00.
sources have been most helpful to the
www.RealtyRates.com is an Internet
authors in developing hotel assessments
subscription service which publishes
in their jurisdiction. All prices quoted
several surveys with capitalization rates,
were as of January 2005.
rents, expenses, vacancies and other
Hotels and Motels: Valuations and Market
data for all major income-producing
Studies by Stephen Rushmore, MAI, and
commercial properties. The reports are
Erich Baum, is a publication of the Ap-
published quarterly and are $79.00 for
praisal Institute (www.appraisalinstitute.
an annual subscription.
org). This book contains information on
USRC Hotel Investment Survey (www.
gauging hotel demand, site selection,
USRC.com), which is published by a
facility financing, design, valuation, and
group of hotel industry specialists, offers
management. The price for this book is
cap rates and other hotel data. This Web
approximately $45.00.
site is free.
Pannell Kerr Forster Inc. (PKF) (www.
pkfonline.com) publishes a report en-
titled PKF—Trends in the Hotel Industry.
This is an annual report that details
the result of surveys of hotel revenue,
Journal of Property Tax Assessment and Administration • Volume 2, Issue 1 29
16. Glossary • Telecommunications Income – all
• Average Daily Rate (ADR) – av- income generated through the use
erage room income per occupied of in-room telephones for local and
room. long distance calls as well as fax
services and Internet connection
• Departmental Expenses – expenses services.
directly incurred by the operation
of the different hotel “depart- • Undistributed Operating Expenses
ments,” namely rooms, food and – Operating expenses not incurred
beverage, telecommunications, by the specific departments. Gen-
and miscellaneous. eral hotel operating expenses. For
example, administrative, utilities,
• Food and Beverage Income – all and marketing expense.
income generated from the sale of
food and beverages, including room
service and alcoholic beverages. References
• FF&E – the furniture, fixtures, and Appraisal Institute. 2001. Appraisal of
equipment necessary to operate a real estate, 12th ed. Chicago: Appraisal
hotel, typically a large investment Institute.
for most hotels. These assets are International Association of Assessing
excluded from the valuation of the Officers. 1999. Mass appraisal of real prop-
real estate. erty. Chicago: International Association
• Franchise Fees – payment that a of Assessing Officers.
hotel makes to be affiliated with a Marshall & Swift. 2004. Marshall valua-
national chain. This generally is an tion service book. Los Angeles. Marshall
expense attributed to the business & Swift.
concern of the hotel. O’Neill, J.W. 2004 An automated valu-
• Management Fees – payment that ation model for hotels. Cornell Hotel
a hotel owner makes to a manage- and Restaurant Administration Quarterly.
ment company to run the day-to- August.
day operation of the hotel. These Pannell Kerr Forster Inc. Annual. Trends
fees are typically based on percent- in the hotel industry. New York: Pannell
ages of revenue and represent the Kerr Forster Inc.
total cost of running the business.
RealtyRates.com. 2004. Third quarter
• Miscellaneous Income – revenue 2004 investor survey. Bradenton, FL:
generated from retail space rent- RealtyRates.com.
als, meeting room rentals, parking, Smith Travel Research. Annual. The host
laundry, and fees from ancillary study. Hendersonville, TN: Smith Travel
services. Research.
• Rack Rate – the advertised rate of
the hotel. Usually the highest rate Additional Resources
offered to someone who has no
reservation. Case law on the Rushmore approach and
business enterprise value
• Room Revenue – all income gener-
Dist. of Columbia v. Wash. Sheraton Corp.,
ated from room rentals.
499 A.2d 109 (D.C. 1985).
• RevPAR (revenue per available Estate of Slutsky v. C.I.R., 1983 Tax Ct.
room) – actual room income divid- Memo LEXIS 208 T.C. Memo 1983-578
ed by the total number of rooms. (U.S. Tax Ct. 1983).
30 Journal of Property Tax Assessment and Administration • Volume 2, Issue 1
17. Glen Pointe Assoc. v. Teaneck Township, 10 In re J.F.K. Acquisitions Group, 166 B.R. 207
N.J. Tax 380 (1989). (Bankr. E.D. N.Y. 1994).
Hilton Hotels Corporation v. Jackson County Marriott Corp. v. Bd. Of Cnty. Commission-
Assessor, 2003 WL 21443402 (Or. Tax ers, 972 P.2d 793 (Ks. App. 1999).
Magistrate Div.) Merle Hay Mall v. Polk County Board of Re-
Hull Junction Holding Corp. v. Princeton view, 564 N.W. 2d 419 (Iowa 1997).
Borough, 16 N.J. Tax 58 (1995). Prudential Ins. v. Township of Parsippany,
In re Grand Traverse Development Co. Ltd. 16 N.J. Tax 58 (1995).
Partnership, 150 B.R. 176 (Bankr. W.D.
Mich. 1993).
Journal of Property Tax Assessment and Administration • Volume 2, Issue 1 31
18. 32 Journal of Property Tax Assessment and Administration • Volume 2, Issue 1