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Valuation Parameters of Hotel Properties
Table of Contents
Table of Contents
Foreword ________________________________________________ 5
3
Valuation Parameters of Hotel Properties
Table of Contents
4 Data Sheets Overview 4/5 Star City Hotels (Brand) __________ 102
5 Glossary_____________________________________________ 107
4
Valuation Parameters of Hotel Properties
Foreword
Foreword
5
Valuation Parameters of Hotel Properties
Foreword
France
- Julia Kneist (CBRE GmbH | Hotels Germany & CEE)
Germany
- HypZert Professional Group Hospitality & Restaurant Industry:
o Helmut Keber (Keber Königsberger Sachverständige
GmbH & Co. KG),
o Ralf Lamprecht (VR Wert GmbH),
o Christine Mayer (Cushman & Wakefield LLP),
o Harald Müller (Value AG),
o Ulrich Peters (Helaba Gesellschaft für Immobilienbewer-
tung mbH),
o Florian Pollmann (Aareal Valuation GmbH),
o Heike Stork (Deutsche Pfandbriefbank AG)
- Reiner Lux (CEO, HypZert GmbH)
Greece
- Konstantinos Pallis (AVAG)
- Eleni Kouroutsopoulou (AVAG)
- Evangelos Papaliolios (AVAG)
Hungary
- Tamasne Kurucz (CIB Bank)
Ireland
- Gareth Williams (CBRE Hotels),
- Patrick Davitt (IPAV)
Italy
- Silvia Cappelli (ASSOVIB),
- Federica Selleri (ASSOVIB),
6
Valuation Parameters of Hotel Properties
Foreword
Romania
- Daniel Manate (ANEVAR)
- Adrian Vascu (ANEVAR)
- Ababei Dana (ANEVAR)
- Lazar Laurentiu (ANEVAR)
Serbia
- Danijela Ilic (NAVS)
Spain
- Leandro Escobar (ATASA)
UK
- Julia Kneist (CBRE GmbH | Hotels Germany & CEE)
7
Valuation Parameters of Hotel Properties
Foreword
8
Valuation Parameters of Hotel Properties
Explanation of Terminology and Current Overall Conditions
9
Valuation Parameters of Hotel Properties
Explanation of Terminology and Current Overall Conditions
1.4 Hostels
Hostels are inexpensive hotel businesses with dormitories (‘dorms’) and
private bedrooms (‘rooms’). Dorms are mainly offered on a bed-by-bed
basis, i.e. individual guests use beds in a shared room. Sanitary facilities are
often shared. Such hotels focus more on young individual travellers and
groups/ school groups. Hostels are normally found in central and trendy
locations in major cities.
10
Valuation Parameters of Hotel Properties
Data Sheets
2 Data Sheets
11
GERMANY Valuation Parameters of Hotel Properties
Data Sheets
Brief description
Classification 4 Stars
Room fitout Standardised rooms, room size slightly above normal
standard according to star classification, en-suite show-
er/WC, some with en-suite bath/WC and TV in the room,
good to very good fitout, offering a niche product e.g. with
design and/or themed fitout specification, suites
Catering Often 1 restaurant, bar
Other facilities Conference rooms, sauna and small fitness area, small-
scale public space
Services Reception, room service, laundry and dry-cleaning ser-
vices etc.
Typical operators Crowne Plaza, Fleming‘s, Holiday Inn, Melia, NH,
Novotel, Steigenberger
Typical guest structure Business travellers, tourists (leisure), conference
Reservation systems Reservation systems e.g. company-own reservation sys-
tems, hrs, hotel.de
Special features
Business All-year-round
Important for on-site An ongoing good fitout specification and general good
inspection state of repair of the building must be ensured
Short distances between kitchen and conference area, in
contrast to a 5 Star hotel mainly a low level of serviced
12
Valuation Parameters of Hotel Properties GERMANY
Data Sheets
areas/ offers
Typical revenue distribution Lodging/F&B ratio of approx. 65/30, remaining others
Business ratios
Rack Rate €80.00–200.00 per room
Average Room Rate €70.00–130.00 per room
Occupancy Rate 60.0%–75.0%
RevPAR €45.00–100.00 per room
Multiple Occupancy Factor 1.2– 1.4
Average length of stay 2 days
GOP 30.0%–45.0% of net turnover
Adjusted NOI 6.0%–10.0% of net turnover
13
GERMANY Valuation Parameters of Hotel Properties
Data Sheets
These recommendations must carefully be verified for each valuation! The key
data (with exception of the minimum requirements of BelWertV) are
approximate figures.
14
Valuation Parameters of Hotel Properties GERMANY
Data Sheets
Brief description
Special features
Typical revenue distribution Lodging (75.0%–85.0%); F&B (15.0%–25.0%); others
15
GERMANY Valuation Parameters of Hotel Properties
Data Sheets
These recommendations must carefully be verified for each valuation! The key
data (with exception of the minimum requirements of BelWertV) are
approximate figures.
16
Valuation Parameters of Hotel Properties GERMANY
Data Sheets
Brief description
17
GERMANY Valuation Parameters of Hotel Properties
Data Sheets
Special features It is possible to divide the hostel segment into two basic
types:
1. The smaller hostel (10– 100 beds) with exceptional flair
for individual travellers, often independent operators
2. The larger hostel (100– 900 beds) with youth hostel style
flair often chain hostel with corporate identity.
Due to better comparability, comments refer to large busin-
esses only.
Investors are also interested in more basic locations e.g. the
possible conversion of existing buildings no longer in de-
mand. In terms of the investment costs, relatively high rents
are achievable with a better standard of fitout due to the
possible multiple occupancy of a dorm. In dorms it is often
possible to increase the number of beds as and when
required (e.g. a 6-bed room becomes an 8-bed room), which
is why the valuation should not be based on the maximum
number of beds, but on the permissible number of beds!
Guests’ expectations are increasing as a result of the intensi-
fication of competition in the hostel segment, which is leading
to a rise in investment costs and overlapping of this segment
with the budget hotel industry.
Recommended approach: if hotel use dominates in the pro-
perty, the figures for the designation ‘rooms’ should be com-
pared with the data sheets for the relevant hotel category.
18
Valuation Parameters of Hotel Properties GERMANY
Data Sheets
FF&E component
Ancillary building costs
Standard no. of Of no relevance for this type of business
parking spaces
Proportion of value 15%–30% in city centre locations
attributable
to the land
19
GERMANY Valuation Parameters of Hotel Properties
Data Sheets
Business ratios
Rack Rate (‘Dorms’) €8.00–25.00 per bed
Rack Rate (‘Rooms’) €30.00–80.00 per room
Average Bed Rate €8.00–25.00
Bed Occupancy Rate 40%–65%
Multiple Occupancy Variable depending on size and proportion of dorms
Factor 3– 4 days
Average length of stay
GOP 35%–45% of net turnover
Adjusted NOI 8%–20% of net turnover
These recommendations must carefully be verified for each valuation! The key
data (with exception of the minimum requirements of BelWertV) are
approximate figures.
20
Valuation Parameters of Hotel Properties GERMANY
Data Sheets
Brief description
Classification 3 to 4 Stars
Room fitout Rooms normally with balcony, if possible with bathtub,
some with view (e.g. with views in direction sea or mount-
ains), some with family rooms, apartments and suites or
interconnected rooms, possibility to provide additional beds
Catering 2 restaurants, bar/café, additional conservatory, catering on
the terrace, potentially disco/night club
Other facilities Spa area, sport/fitness area, event area (also usable as
convention or conference area), rooms for nursery services,
boutique, tobacco and newsagents
Services Reception, room service, entertainment programme, laun-
dry and dry-cleaning services
Typical operators Independent operators, hotel chains such as Arkona,
Dorint, Maritim, Seetel, Steigenberger; Travel Charme,
Upstalsboom, hotel co-operations, tour operators
Typical guest structure Tourism (leisure), convention and conference guests
Reservation systems Respective homepage and/or catalogue of tour operator or
reservation using travel agencies, own brochure, own
homepage, standard internet platforms
21
GERMANY Valuation Parameters of Hotel Properties
Data Sheets
Special features
Business Often all-year-round, depending on location and offer
also limited to specific seasons
Important for on-site Short distances from kitchen to catering outlets
inspection Restaurant sufficiently dimensioned for large events
and for high season
Additional incentives for off-season and bad weather
Typical revenue distribution Lodging 45%–50%, F&B approx. 45%, others 5%–10%
Others In contrast to other types of hotels, asking prices in
resort hotels are based mainly on the number of people
or beds due to the high multiple occupancy factor. This
means that attention should be paid to bed-related
statistics.
Business ratios
Rack Rate €70.00–170.00 per room
Average Room Rate €70.00–100.00 per room
Occupancy Rate 50.0%–65.0% (annual average)
Bed Occupancy Rate 40.0%–55.0% (annual average)
RevPAR €40.00–60.00 per room
Multiple Occupancy Factor 1.8
Prices for half-board €15.00–35.00
Average length of stay 4– 7 days
GOP 20.0%–30.0% of net turnover
Adjusted NOI 3.0%–7.0% of net turnover
22
Valuation Parameters of Hotel Properties GERMANY
Data Sheets
These recommendations must carefully be verified for each valuation! The key
data (with exception of the minimum requirements of BelWertV) are
approximatefigures
23
ITALY Valuation Parameters of Hotel Properties
Data Sheets
Brief description
Special features
Business All-year-round
Important for on-site An ongoing good fitout specification and general good
inspection state of repair of the building must be ensured
Short distances between kitchen and conference area
Typical revenue distribution Lodging/F&B ratio of approx. 80%, remaining others
24
Valuation Parameters of Hotel Properties ITALY
Data Sheets
Business ratios
Rack Rate €100.00–300.00 per room
Average Room Rate €75.00–150.00 per room
Occupancy Rate 55.0%–75.0%
RevPAR €42.00–112.00 per room
Multiple Occupancy Factor 1.2– 1.4
Average length of stay 2 days
GOP 30.0%–40.0% of net turnover
Adjusted NOI 6.0%–10.0% of net turnover
Market Value
Maintenance €10.00– 15.00/m² plus
underground garage
Property management approx. 1% of GRI p.a.
Allowance for risk of rental loss 4% - 5%
Modernisation risk Property-specific
Useful life up to 50 years
Property yield 5.0%–7.0%
Capitalisation rate 6.0%–10.0%
These recommendations must carefully be verified for each valuation! The key data are
approximate figures.
25
ITALY Valuation Parameters of Hotel Properties
Data Sheets
Brief description
Special features
Typical revenue distribution Lodging (85.0%); F&B (15.0%); others
26
Valuation Parameters of Hotel Properties ITALY
Data Sheets
Market Value
Maintenance €7.50–10.00/m²
Property management 2% of GRI p.a.
Allowance for risk of rental loss 3- 5% of GRI p.a.
Modernisation risk Property-specific
Total useful life 40–50 years
Property yield 6.0%–7.5%
Capitalisation rate 7.0%–10%
These recommendations must carefully be verified for each valuation! The key data are
approximate figures.
27
ITALY Valuation Parameters of Hotel Properties
Data Sheets
Brief description
28
Valuation Parameters of Hotel Properties ITALY
Data Sheets
29
ITALY Valuation Parameters of Hotel Properties
Data Sheets
Business ratios
Rack Rate (‘Dorms’) €10.00–30.00 per bed
Rack Rate (‘Rooms’) €25.00–50.00 per room
Average Bed Rate €8.00–25.00
Bed Occupancy Rate 50%–75%
Multiple Occupancy Factor Variable depending on size and proportion of dorms
Average length of stay 3– 5 days
GOP 35%–45% of net turnover
Adjusted NOI 10%–20% of net turnover
Market Value
Maintenance €10.00– 12.00/m²
Property management approx. 1% of GRI p.a.
Allowance for risk of rental loss 3-5%
Modernisation risk Property-specific
Useful life 30–50 years
Property yield 6.0%–8.0%
Capitalisation rate 7.0%–10.0%
These recommendations must carefully be verified for each valuation! The key data are
approximate figures.
30
Valuation Parameters of Hotel Properties ITALY
Data Sheets
Brief description
Classification 3 to 5 Stars
Room fitout Rooms normally with balcony. Some with view (e.g. with
views in direction sea or mountains), some with family
rooms, apartments and suites or interconnected rooms,
possibility to provide additional beds
Catering more restaurants, bar/café, additional conservatory,
catering on the terrace, potentially disco/night club
Other facilities Spa area, sport/fitness area, event area (also usable as
convention or conference area), rooms for nursery services,
boutique, tobacco and newsagents
Services Reception, room service, entertainment programme, laun-
dry and dry-cleaning services
Typical operators Independent operators, hotel chains such as hotel co-
operations, tour operators (Alpitour, Vera Tour, Club
Mediterranè, Bravo Club…..)
Typical guest structure Tourism (leisure), convention and conference guests
Reservation systems Respective homepage and/or catalogue of tour operator or
reservation using travel agencies, own brochure, own
homepage, standard internet platforms
31
ITALY Valuation Parameters of Hotel Properties
Data Sheets
Special features
Business Often all-year-round, depending on location and offer
also limited to specific seasons
Important for on-site Short distances from kitchen to catering outlets
inspection Restaurant sufficiently dimensioned for large events
and for high season
Additional incentives for off-season
Typical revenue distribution Lodging 45%–50%, F&B approx. 45%, others 5%–10%
Business Often all-year-round, depending on location and offer
also limited to specific seasons
Business ratios
Rack Rate €130.00–300.00 per room
Average Room Rate €100.00–250.00 per room
Occupancy Rate 60.0%–75.0% (annual average)
Bed Occupancy Rate 45.0%–60.0% (annual average)
RevPAR €40.00–45.00 per room
Multiple Occupancy Factor 1.8
Prices for half-board €15.00–35.00
Average length of stay 7 – 15 days
GOP 20.0%–30.0% of net turnover
Adjusted NOI 5.0%–7.0% of net turnover
32
Valuation Parameters of Hotel Properties ITALY
Data Sheets
Standard market operating rents €400.00–1,000.00 per room p.m. (incl. FF&E)
Gross income multiplier 12–15
Net Initial Yield 6.0%–7.25%
Market Value
Maintenance €9.00–14.00/m² plus
underground garage
Property management approx. 1% of GRI p.a.
Allowance for risk of rental loss 3-5%
Modernisation risk Property-specific
Total useful life up to 50 years
Property yield 5.5%–7%
Capitalisation rate
6%–9.5%
These recommendations must carefully be verified for each valuation! The key data
(with exception of the minimum requirements of BelWertV) are approximate figures.
33
ROMANIA Valuation Parameters of Hotel Properties
Data Sheets
Brief description
Classification 4 Stars
Room fitout Standardised rooms, room size slightly above normal
standard according to star classification (25-40sqm per
room without common areas), air conditioning, controlled
temperature, en-suite shower/WC, TV in the room, good
to very good fitout, offering a niche product e.g. with
design and/or themed fitout specification, suites
Catering Often 1 restaurant, bar
Other facilities Conference rooms, sauna and small fitness area, small-
scale public space
Services Reception, room service, laundry and dry-cleaning ser-
vices etc.
Typical operators Radisson, Crowne Plaza, Holiday Inn, Hilton, NH,
Novotel, Golden Tulip., Marriott
Typical guest structure Business travellers, tourists (leisure), conference
Reservation systems Reservation systems e.g. company-own/professional
reservation systems
Special features
Business All-year-round
Important for on-site An on-going good fit out specification and general good
inspection state of repair of the building must be ensured, rooms
area and proportion with the rest of the hotel must be
34
Valuation Parameters of Hotel Properties ROMANIA
Data Sheets
Business ratios
Rack Rate €80.00–180.00 per room
Average Room Rate €65.00–100.00 per room
Occupancy Rate 60.0%–70.0%
RevPAR €40.00–70.00 per room
Multiple Occupancy Factor n.a. estimated at 1.2-1.3 as the most of the guests
Average length of stay travel alone for business purposes
1.3 – 1.4 days
GOP 40.0%–50.0% of turnover
NOI – EBITDA 35%–45% of turnover
Market Value
Maintenance €€ 5.00– 10.00/m²
Property management 2-2.5% of turnover p.a.
Allowance for risk of rental loss n.a.
Modernisation risk Property-specific
Useful life up to 50 years
Property yield 7.0%–8.5%
35
ROMANIA Valuation Parameters of Hotel Properties
Data Sheets
Brief description
Special features
Typical revenue distribution Lodging (85.0%–98.0%); F&B (15.0%–2.0%); others
36
Valuation Parameters of Hotel Properties ROMANIA
Data Sheets
Market Value
Maintenance €2–6.00/m²
Property management 2% of GRI p.a.
Allowance for risk of rental loss 2% of GRI p.a.
Modernisation risk property specific.
Total useful life 40–50 years
Property yield 9%–12%
These recommendations must carefully be verified for each valuation! The key data are
approximate figures.
37
ROMANIA Valuation Parameters of Hotel Properties
Data Sheets
Brief description
Classification 3 to 4 Stars
Room fitout Rooms normally with balcony, if possible with bathtub,
some with view (e.g. with views in direction sea or mount-
ains), some with family rooms, apartments and suites or
interconnected rooms, possibility to provide additional beds
Catering disco/night club
Other facilities Spa area, sport/fitness area, event area (also usable as
convention or conference area),
Services Reception, room service, entertainment programme
Typical operators Independent operators, hotel chains such as ANA, IBIS
hotel co-operations, tour operators
Typical guest structure Tourism (leisure), convention and conference guests
Reservation systems Respective homepage and/or catalogue of tour operator or
reservation using travel agencies, own brochure, own
homepage, standard internet platforms
38
Valuation Parameters of Hotel Properties ROMANIA
Data Sheets
Special features
Business Often all-year-round, depending on location and offer
also limited to specific seasons
Important for on-site ………..
inspection
Typical revenue distribution Lodging 45%–50%, F&B approx. 53-49%, others 1%–
3%
Business ratios
Rack Rate €50.00–100.00 per room
Average Room Rate €30.00–70.00 per room
Occupancy Rate 40.0%–50.0% (annual average)
Bed Occupancy Rate 40.0%–50.0% (annual average)
RevPAR €15.00–40.00 per room
Multiple Occupancy Factor
Prices for half-board
Average length of stay 2 – 4 days
GOP 20.0%–30.0% of net turnover
Adjusted NOI 3.0%–7.0% of net turnover
39
ROMANIA Valuation Parameters of Hotel Properties
Data Sheets
Market Value
Maintenance €2.00–6.00/m²
40
Valuation Parameters of Hotel Properties SERBIA
Data Sheets
Majority of 5 star and 4 star Hotels are situated in Belgrade, Novi sad, Subotica.
There are several Resort Hotels in Serbian touristic centres, usually on famous
mountains such as Kopaonik, Zlatibor, Stara planina and famous Spa such as
Vrnjacka Banja, Arandjelovac also Lake Palic, Subotica.
International Hotel brands that are operating in Serbia are:
Global Hyatt with “Hyatt Regency” in Belgrade (New Belgrade)
Intercontinental Hotel Group with “Holiday Inn” and “Crown Plaza” New Bel-
grade
Best Western with 2 hotels in Belgrade, one hotel in Nis and one hotel in Subotica
Regional hotel group Greek Hotels with hotel “Metropol Plaza” in Belgrade.
Russian-based holding PSP and its Serbian unit, PFB Properties, has started con-
struction of the first Marriott hotel in the Balkan country (reconstruction of previ-
ous ‘Jugodrvo’ business building in Belgrade).
Majority of Hostels in Serbia are converted business buildings or other buildings
converted into hostels. Only one Hostel in Belgrade has about 100 beds, all other
Hostels have on average between 5-40 beds.
41
SERBIA Valuation Parameters of Hotel Properties
Data Sheets
Brief description
Classification 4 Stars
Room fit out Room size according to the brand and star classification,
very good fit out, luxurious bedding, audio hub, WI-FI,
working desk and LCD TV, adjustable air-condition,
cable-TV, fridge, telephone and private bath with shower/
WC.
Special features
Business All-year-round
Important for on-site The overall state of fabrics, equipment, fixtures and
inspection building, the layout of the hotel building, composition of
common areas
42
Valuation Parameters of Hotel Properties SERBIA
Data Sheets
Business ratios
Rack Rate €80.00–160.00 per room
Average Room Rate €60.00–110.00 per room
Occupancy Rate 45.0%–55.0%
RevPAR €30.00–60.00 per room
Multiple Occupancy Factor 1.2– 1.4
Average length of stay 2 days
GOP 27%–40% of net turnover
Adjusted NOI 15%–20% of net turnover
Market Value
Maintenance €7.00– 10.00/m²
These recommendations must carefully be verified for each valuation! The key data are
approximate figures.
43
SERBIA Valuation Parameters of Hotel Properties
Data Sheets
Brief description
Special features
Typical revenue distribution Lodging (70.0%–80.0%); F&B (15.0%–20.0%); others
10%
44
Valuation Parameters of Hotel Properties SERBIA
Data Sheets
Market Value
Maintenance €5.00–10.00/m²
Property management approx. 1% of GRI p.a.
Allowance for risk of rental loss 5% of GRI p.a.
Modernisation risk ………..
Total useful life approx. 60 years
Property yield 9%–14%
These recommendations must carefully be verified for each valuation! The key data are
approximate figures.
45
SERBIA Valuation Parameters of Hotel Properties
Data Sheets
Brief description
Classification 3 to 4 Stars
Room fit out Rooms larger than in Garni Hotels or city Hotels. Some are
with views. Modern fit out
Catering Breakfast lounge + restaurants a la carte, bars, coffee shops
Other facilities Spa and wellness, fitness room, boutiques, small shops,
conference room
Services Reception, room service, laundry, entertainment
Typical operators Independent operators
Typical guest structure Leisure tourists, conference guests
Reservation systems Travel agencies, website
46
Valuation Parameters of Hotel Properties SERBIA
Data Sheets
Special features
Business All year round
Typical revenue distribution Lodging 50%–60%, F&B approx. 30%, others 10%–
20%
Others
Business ratios
Rack Rate €60.00–120.00 per room
Average Room Rate €60.00–100.00 per room
Occupancy Rate 40.0%–60.0% (annual average, high season
Bed Occupancy Rate occupancy is 90%, low season occupancy is 27%)
RevPAR 40.0%–55.0% (annual average)
Multiple Occupancy Factor 2
Prices for half-board €20.00–30.00
Average length of stay 5-7 days
GOP 25.0%–30.0% of net turnover
Adjusted NOI 10.0% of net turnover
47
SERBIA Valuation Parameters of Hotel Properties
Data Sheets
Market Value
Maintenance €X.00–XX.00/m²
48
Valuation Parameters of Hotel Properties GREECE
Data Sheets
Brief description
Classification 5 Stars
Room fitout Standardized rooms, room size slightly above normal
standard according to star classification, en-suite
shower/WC, some with en-suite bath/WC and TV in the
room, good to very good ftout, offering a niche product
e.g. with design and/or themed fitout specification, suites
Catering In most cases more than 1 restaurant, bar
Other facilities Conference rooms, spa, sauna and fitness area, small to
very large scale public space
Services Reception, room service, laundry and dry cleaning
services etc.
Typical operators Brands: Hilton, Starwood, Radisson, Crowne Plaza,
Accor, Holliday Inn. A large proportion out of the total
number is also operated by national brands like Grecotel,
Divani Collection, Electra Hotels and Resorts, Chandris
Hotels etc.
Typical guest structure Business travelers, high-level spending tourists (leisure),
conference
Reservation systems Reservation systems e.g. company own reservation
systems, hrs, hotel.com, booking.com
Special features
49
GREECE Valuation Parameters of Hotel Properties
Data Sheets
Business All-year-round
Important for on-site An ongoing good fitout specification and general good
inspection state of repair of the building must be ensured
Short distances between kitchen and conference area
Typical revenue distribution Lodging/F&B ratio of approx. 75/20, remaining others
Business ratios
Rack Rate €80.00–400.00 per room
Average Room Rate €90.00–200.00 per room
Occupancy Rate 40.0%–70.0%
RevPAR €55.00–150.00 per room
Multiple Occupancy Factor N/A
Average length of stay 2-2,3 days
GOP 20.0%–35.0% of net turnover
Adjusted NOI 7.0%–17.0% of net turnover
Market Value
Maintenance €7.00– 15.00/m²
Property management N/A
Allowance for risk of rental loss N/A
Modernisation risk Property specific
Useful life min 60 years (up to 100
Years for listed buildings)
Property yield 9.0%–11.5%
50
Valuation Parameters of Hotel Properties GREECE
Data Sheets
Brief description
Special features
Typical revenue distribution Lodging/F&B ratio of approx. 95/5
51
GREECE Valuation Parameters of Hotel Properties
Data Sheets
Market Value
Maintenance €7.00–20.00/m²
Property management N/A
Allowance for risk of rental loss N/A
Modernisation risk Property specific
Total useful life min 50 years
Property yield 10.5%–12.0%
These recommendations must carefully be verified for each valuation! The key data
are approximate figures.
52
Valuation Parameters of Hotel Properties GREECE
Data Sheets
Brief description
53
GREECE Valuation Parameters of Hotel Properties
Data Sheets
54
Valuation Parameters of Hotel Properties GREECE
Data Sheets
Business ratios
Rack Rate (‘Dorms’) €15.00–120.00 per bed
Rack Rate (‘Rooms’) €25.00–60.00 per room
Average Bed Rate N/A
Bed Occupancy Rate 40%–70%
Multiple Occupancy Factor N/A
Average length of stay 1 – 7 days
GOP 15%–30% of total turnover
Adjusted NOI 7%–20% of total turnover
Market Value
Maintenance €4.00– 12.00/m²
Property management N/A
Allowance for risk of rental loss N/A
Modernisation risk Property specific
Useful life Min 60 years (up to 100
years for listed buildings)
Property yield 10.5%–13.0%
These recommendations must carefully be verified for each valuation! The key data
are approximate figures.
55
GREECE Valuation Parameters of Hotel Properties
Data Sheets
Classification 4 to 5 Stars
Room fitout Standardized rooms, room size slightly above normal
standard according to star classification, en-suite
shower/WC, some with en-suite bath/WC and TV in the
room, good to very good fitout, suites, usually rooms with
sea view
Catering In most cases more than 1 restaurant, bar
Other facilities Conference rooms, spa, sauna and fitness area, large to
very large scale outdoor public spaces, tennis-courts, golf-
courts etc
Services Reception, room service, laundry and dry cleaning services,
transportation services etc
Typical operators Brands: Hilton, Grecotel, Louis, Mitsis, Aman, Club
Mediterrannee etc. A large proportion out of the total
number of is also operated by national brands like Grecotel,
Chandris Hotels, Louis Hotels, Aquis etc
Typical guest structure Leisure tourists, families with children, conference
Reservation systems Usually international tour operators, reservation systems
e.g. company own reservation systems, hrs, hotel.com,
booking.com etc
56
Valuation Parameters of Hotel Properties GREECE
Data Sheets
Special features
Business Usually 180-220 days per year (April-October)
Important for on-site An ongoing good fitout specification and general good
inspection state of repair of the building must be ensured, the
same applies to outdoor spaces (gardens, pools, courts
etc)
Typical revenue distribution Lodging/F&B ratio of approx. 75/20, remaining others
Business ratios
Rack Rate €90.00–350.00 per room
Average Room Rate €80.00–210.00 per room
Occupancy Rate 50.0%–80.0% in the operating period
Bed Occupancy Rate N/A
RevPAR €45.00-130.00
Multiple Occupancy Factor N/A
Prices for half-board N/A
Average length of stay 4-10 days
GOP 15.0%–25.0% of total turnover
Adjusted NOI 15.0%–45.0% of total turnover
57
GREECE Valuation Parameters of Hotel Properties
Data Sheets
9.5%–11.0%
Market Value
Maintenance €10.00–30.00/m²
58
Valuation Parameters of Hotel Properties GREECE
Data Sheets
Brief description
Special features
Business All-year-round
59
GREECE Valuation Parameters of Hotel Properties
Data Sheets
Important for on-site Good fitout specification in general, but the state of repair
inspection of the building must be ensured
Short distances between kitchen and conference area, in
contrast to a 5-star hotel mainly a low level of serviced
areas/offers
Typical revenue distribution Lodging/F&B ratio of approx. 90/10
Business ratios
Rack Rate €30.00–200.00 per room
Average Room Rate €50.00–120.00 per room
Occupancy Rate 50.0%–80.0%
RevPAR €30.00–70.00 per room
Multiple Occupancy Factor N/A
Average length of stay 2+days
GOP 25.0%–45.0% of total turnover
NOI – EBITDA 8%–20% of total turnover
Market Value
Maintenance €4.00– 12.00/m²
Property management N/A
Allowance for risk of rental loss N.A.
Modernisation risk Property-specific
Useful life min 60 years
Property yield 10.0%–11.5%
60
Valuation Parameters of Hotel Properties HUNGARY
Data Sheets
Brief description
Classification 4 Stars
Room fitout Standardised rooms, room size slightly above normal
standard according to star classification, en-suite show-
er/WC, some with en-suite bath/WC and TV in the room,
good to very good fitout, offering a niche product e.g. with
design and/or themed fitout specification, suites
Special features
Business All-year-round
Important for on-site An ongoing good fitout specification and general good
inspection state of repair/maintenance of the building must be
ensured
61
HUNGARY Valuation Parameters of Hotel Properties
Data Sheets
Business ratios
Rack Rate € 65.00–120.00 per room
Average Room Rate € 55.00–85.00 per room
Occupancy Rate 60.0%– 75,0%
RevPAR € 30 –50.00 per room
Multiple Occupancy Factor 1.2– 1 .4
Average length of stay 2,0 days
GOP 25,0%– 35, 0% of net turnover
Adjusted NOI 7,0%– 10,0% of net turnover
Market Value
Maintenance € 10,00– 1 2 , 00/m²
62
Valuation Parameters of Hotel Properties HUNGARY
Data Sheets
Brief description
Classification 3 Stars
Room fitout Standardised rooms, room size according to star
classification, shower/WC, some with bath/WC and TV in
the room, average fitout, sometimes apartments
Special features
Business All-year-round
Important for on-site Standard fitout, 3star-based room standards specification
inspection and continual maintenance of the building must be
ensured
63
HUNGARY Valuation Parameters of Hotel Properties
Data Sheets
Business ratios
Rack Rate €45.00–65.00 per room
Average Room Rate €35.00–55.00 per room
Occupancy Rate 50.0%–62,5.0%
RevPAR €18.00–25.00 per room
Multiple Occupancy Factor 1.1– 1 .3
Average length of stay 2,5 days
GOP 25.0%–35.0% of net turnover
Adjusted NOI 7.0%–10.0% of net turnover
Market Value
Maintenance € 8.00– 1 0 .00/m²
These recommendations must carefully be verified for each valuation! The key
data are approximate figures.
64
Valuation Parameters of Hotel Properties HUNGARY
Data Sheets
Brief description
Classification 3 to 4 Stars
Room fitout Rooms normally with balcony, if possible with bathtub,
some with view (e.g. with views in direction Balaton or hills),
some with family rooms, apartments and suites or
interconnected rooms, possibility to provide additional beds
Catering 2 restaurants, bar/café, additional conservatory, catering on
the terrace, potentially disco/night club
Other facilities Spa area, sport/fitness area, event area (also usable as
convention or conference area), rooms for nursery services,
boutique, tobacco and newsagents
Services Reception, room service, entertainment programme, laun-
dry and dry-cleaning services
Typical operators Independent operators, hotel chains such as Danubius,
Hunguest, Radisson, hotel co-operations, tour operators
Typical guest structure Tourism (leisure), convention and conference guests
Reservation systems Respective homepage and/or catalogue of tour operator or
reservation using travel agencies, own brochure, own
homepage, standard internet platforms
65
HUNGARY Valuation Parameters of Hotel Properties
Data Sheets
Special features
Business Often all-year-round, depending on location and offer
also limited to specific seasons
Important for on-site Short distances from kitchen to catering outlets
inspection Restaurant sufficiently dimensioned for large events
and for high season
Additional incentives for off-season and bad weather
Typical revenue distribution Lodging 35%–45%, F&B approx. 30-40%, others 5%–
10%
Others In contrast to other types of hotels, asking prices in
resort hotels are based mainly on the number of people
or beds due to the high multiple occupancy factor. This
means that attention should be paid to bed-related
statistics.
Business ratios
Rack Rate €60.00–80.00 per room
Average Room Rate €50.00–65.00 per room
Occupancy Rate 61,9.0%–72.0% (annual average)
Bed Occupancy Rate 50.0%–60.0% (annual average)
RevPAR €31.00–44.00 per room
Multiple Occupancy Factor 1,6-1,8
Prices for half-board €13.00–20.00
Average length of stay 3 – 6 days
GOP 20.0%–30.0% of net turnover
66
Valuation Parameters of Hotel Properties HUNGARY
Data Sheets
Market Value
Maintenance €10.00–15.00/m²
67
IRELAND Valuation Parameters of Hotel Properties
Data Sheets
68
Valuation Parameters of Hotel Properties IRELAND
Data Sheets
Location characteristics
Main Cities and Major Urban Centres
Good Transport Links
Good visibility / profile
Property characteristics/ concept
Purpose built, multi-storey
International brand specification finish
Modern Style
Good / very good fit-out
Separate Food & Beverage (F&B), Conference & Banqueting (C&B) and often
Leisure and / or Spa
Brief description
Classification 4 Star
Room fitout Typically standardised rooms with differing
configurations.
En-Suite with bath / shower or both.
Good – very good fit-out.
69
IRELAND Valuation Parameters of Hotel Properties
Data Sheets
Special features
Business All-year-round
Typical revenue distribution Accommodation / F&B and C&B / Leisure and Other –
60 / 30 / 10
Business ratios
Rack Rate €80.00–200.00 per room
Average Room Rate €70.00–130.00 per room
Occupancy Rate 60.0%–80.0%
RevPAR €42.00–€104.00 per room
Multiple Occupancy Factor
Average length of stay
GOP 25.0%–40.0% of net turnover
Adjusted NOI 10.0%–30.0% of net turnover (Pre FF&E and Management)
70
Valuation Parameters of Hotel Properties IRELAND
Data Sheets
Standard market operating rents €4,000.00–€10,000.00 per room p.a. (incl. FF&E)
Gross income multiplier
Net Initial Yield 7.0% – 9.0%
Market Value
Maintenance 3.0% - 4% of Total
Revenues.
Property management
Allowance for risk of rental loss
Modernisation risk
Useful life
Property yield
These recommendations must carefully be verified for each valuation! The key
data are approximate figures.
71
IRELAND Valuation Parameters of Hotel Properties
Data Sheets
Special features
Typical revenue distribution Accommodation (75% - 85%)
F&B and Other (15% - 25%)
General A large number of 3 star hotels are family run, F&B led
businesses which would reflect a different revenue profile
(and lower profit) to that indicated above (which assumes
an accommodation led business)
72
Valuation Parameters of Hotel Properties IRELAND
Data Sheets
Standard no. of parking spaces Property specific, but up to 0.5–1 space per room
Market Value
Maintenance 3.0% - 5.0% of total
revenues.
Property management
Allowance for risk of rental loss
Modernisation risk
Total useful life
Property yield
These recommendations must carefully be verified for each valuation! The key
data are approximate figures.
73
IRELAND Valuation Parameters of Hotel Properties
Data Sheets
Brief description
74
Valuation Parameters of Hotel Properties IRELAND
Data Sheets
75
IRELAND Valuation Parameters of Hotel Properties
Data Sheets
Business ratios
Rack Rate (‘Dorms’) €15.00–25.00 per bed-space
Rack Rate (‘Rooms’)
Average Bed Rate €10.00–€20.00
Bed Occupancy Rate 50%–80% (including rural / seasonal hostels)
Multiple Occupancy Factor
Average length of stay
GOP 50.0%–60.0% of net turnover
Adjusted NOI 35.0%–50.0% of net turnover
Market Value
Maintenance 2.0% - 4.0% of total
revenues.
Property management
Allowance for risk of rental loss
Modernisation risk
Useful life
Property yield
These recommendations must carefully be verified for each valuation! The key
data are approximate figures.
76
Valuation Parameters of Hotel Properties IRELAND
Data Sheets
Brief description
77
IRELAND Valuation Parameters of Hotel Properties
Data Sheets
Special features
Business Usually all-year-round, but can close for the off-season.
Business ratios
Rack Rate €70.00–€250.00 per room
Average Room Rate €70.00–€170.00 per room
Occupancy Rate 50.0%–70.0% (annual average)
Bed Occupancy Rate
RevPAR €35.00–€119.00 per room
Multiple Occupancy Factor
Prices for half-board
Average length of stay
GOP 20.0%–30.0% of net turnover
Adjusted NOI 10.0%–20.0% of net turnover (pre FF&E and
Management)
78
Valuation Parameters of Hotel Properties IRELAND
Data Sheets
Market Value
Maintenance 3.0%–4.0% of total
revenues.
Property management
Allowance for risk of rental loss
Modernisation risk
Total useful life
Property yield
79
FRANCE Valuation Parameters of Hotel Properties
Data Sheets
80
Valuation Parameters of Hotel Properties FRANCE
Data Sheets
Brief description
81
FRANCE Valuation Parameters of Hotel Properties
Data Sheets
Business ratios
Rack Rate €120.00–€300.00 per room
Average Room Rate €80.00–€200.00 per room
Occupancy Rate 65.0%–90.0%
RevPAR €55.00–€190.00 per room
Multiple Occupancy Factor N/A
Average length of stay 1-3 days
GOP 40.0%–55.0% of net turnover
Adjusted NOI 25.0%–45.0% of net turnover
Market Value
Maintenance 1.0%-1.5% of Total
Revenue
Property management 2.0-3.0% of Total Revenue
Allowance for risk of rental loss N/A
Modernisation risk property specific
Useful life 40-60 years
Property yield 4.50%-8.00%
These recommendations must carefully be verified for each valuation! The key
data are approximate figures.
82
Valuation Parameters of Hotel Properties UK
Data Sheets
83
UK Valuation Parameters of Hotel Properties
Data Sheets
Brief description
Special features
84
Valuation Parameters of Hotel Properties UK
Data Sheets
Business All-year-round
Important for on-site Interview with the GM about operation and business
inspection structure
Business ratios
Rack Rate £120.00–£300.00 per room
Average Room Rate £80.00–£200.00 per room
Occupancy Rate 70.0%–95.0%
RevPAR £55.00–£190.00 per room
Multiple Occupancy Factor N/A
Average length of stay 1-3 days
GOP 40.0%–55.0% of net turnover
Adjusted NOI 25.0%–45.0% of net turnover
Market Value
Maintenance 1.0%-1.5% of Total
Revenue
Property management 2.0-3.0% of Total Revenue
85
UK Valuation Parameters of Hotel Properties
Data Sheets
These recommendations must carefully be verified for each valuation! The key
data are approximate figures.
86
Valuation Parameters of Hotel Properties UK
Data Sheets
Brief description
Special features
Typical revenue distribution Lodging (75-85%); F&B (15-25%); others
87
UK Valuation Parameters of Hotel Properties
Data Sheets
Standard no. of parking spaces Property specific – up to 0.5-1 space per room
Proportion of value attributable N/A
to the land
Market Value
Maintenance 1.0-1.5% of Total Revenue
Property management 2.0-3.0% of Total Revenue
Allowance for risk of rental loss N/A
Modernisation risk property specific
Total useful life 30-50 years
Property yield 6.50%-11.00%
These recommendations must carefully be verified for each valuation! The key
data are approximate figures.
88
Valuation Parameters of Hotel Properties UK
Data Sheets
Brief description
Classification 3 to 4 Stars
Room fitout Standard room product
Sofa beds instead of occasional chair and table
Family rooms / interconnecting rooms
Good Fit-out, sometimes room can appear dated and not
up to today’s standards
Catering Several F&B Outlets, Breakfast Restaurant, Specialty Res-
taurant, Bar
Other facilities Golf Course, Spa incl. Wet Leisure, Gym, Conference Cen-
tre
Function rooms, Private Dining rooms, Gardens, Horse
stables
Services 24hr reception, room service, family entertainment, laundry
/ Dry cleaning facilities, tea & coffee making facilities, mini-
bar
Typical operators Q Hotels, De Vere, Luxury Family Hotels, independent op-
erators
Typical guest structure Leisure guests, families, Tours, Conferences & Events,
Celebrations (Such as weddings), Sports guests (esp. Golf)
Reservation systems Brand associated booking systems, direct booking
ca. 40% OTAs
89
UK Valuation Parameters of Hotel Properties
Data Sheets
Special features
Business Usually all-year round, can close for the off-season
Occupancy and ADR are heavily reliant on the sea-
sonality pattern and school holidays
Business ratios
Rack Rate £60.00–£140.00 per room
Average Room Rate £55.00–£90.00 per room
Occupancy Rate 60.0%–75.0% (annual average)
Bed Occupancy Rate N/A
RevPAR £35.00–£70.00 per room
Multiple Occupancy Factor N/A
Prices for half-board N/A
90
Valuation Parameters of Hotel Properties UK
Data Sheets
Market Value
Maintenance 2.5%-4.0% of Total Revenue
These recommendations must carefully be verified for each valuation! The key
data are approximate figures.
91
SPAIN Valuation Parameters of Hotel Properties
Data Sheets
Property characteristics/concept
Multi-storey building
In most cases adapted to brand requirements - standardised
Modern functional architecture/style
Good to very good modern fit-out specification: separate breakfast
room/restaurant, lobby, conference rooms, internet/Wi-Fi in the room, fitness
area
Marketing e.g. via brand/chain hotel business, tour operators
Brief description
Classification 4 Stars
Room fit-out Standardised rooms, normal room size, en-suite show-
er/WC, TV in the room; also some suites
Catering Often 1 restaurant, bar
Other facilities Conference rooms, small fitness area, small-scale public
space
Services Reception, room service, laundry and dry-cleaning ser-
vices, etc.
Typical operators AC-Marriott, Eurostars, Husa, Intercontinental, Meliá, NH,
Novotel, Silken, Vincci
Typical guest structure Business travellers, high-income tourists (leisure),
conference attendees
Reservation systems Company/chain reservation systems and portals
(booking, tripadvisor, trivago, etc.).
Special features
Business All-year-round
Important for on-site · Functionality
inspection · Modernity
· State of repair
· Level of service
92
Valuation Parameters of Hotel Properties SPAIN
Data Sheets
Business ratios
Rack Rate €80.00–200.00 per room
Average Room Rate €70.00–120.00 per room
Occupancy Rate 60.0%–80.0%
RevPAR €40.00–100.00 per room
Multiple Occupancy Factor 1.2– 1.4
Average length of stay 2 days
GOP 25.0%–50.0% of net turnover
Adjusted NOI 8.0%–12.0% of net turnover
Market Value
Maintenance €8.00– 14.00/m²
Property management approx. 1% of GRI p.a.
Allowance for risk of rental loss 5%
Modernisation risk Property-specific
Useful life 30 years
Property yield 6.0%–9.0%
These recommendations must carefully be verified for each valuation! The key
data are approximate figures.
93
SPAIN Valuation Parameters of Hotel Properties
Data Sheets
Brief description
Special features
Typical revenue distribution Lodging (80.0%–95.0%); F&B (5.0%–20.0%); others
(<1%);
94
Valuation Parameters of Hotel Properties SPAIN
Data Sheets
Standard no. of parking spaces 0.2-0.5 spaces per room (but not always proper
parking spaces as such)
Proportion of value attributable
to the land 50.0%–80.0%
Market Value
Maintenance €6.00–10.00/m²
Property management 2% of GRI p.a.
Allowance for risk of rental loss 3%-5% of GRI p.a.
Modernisation risk 0.5%-3% of build cost
Total useful life 25–35 years
Property yield 6.0%–8.0%
Capitalisation rate 8.0%–10.0%
These recommendations must carefully be verified for each valuation! The key
data are approximate figures.
95
SPAIN Valuation Parameters of Hotel Properties
Data Sheets
Brief description
96
Valuation Parameters of Hotel Properties SPAIN
Data Sheets
Construction costs
€1,000– 1,200/m² GEA
FF&E component
Ancillary building costs
Standard no. of parking spaces Of no relevance for this type of business
Proportion of value attributable 20%–40% in city centre locations
to the land
97
SPAIN Valuation Parameters of Hotel Properties
Data Sheets
Business ratios
Rack Rate (‘Dorms’) €15.00–25.00 per bed
Rack Rate (‘Rooms’)
Average Bed Rate €10.00–20.00 per bed
Bed Occupancy Rate 50%–70%
Multiple Occupancy Factor
Average length of stay 3– 7 days
GOP 30%–50% of net turnover
Adjusted NOI 10%–20% of net turnover
Market Value
Maintenance €6.00– 12.00/m²
Property management approx. 1%-2% of GRI p.a.
Allowance for risk of rental loss 3%-5%
Modernisation risk 0.5%-2% of build cost
Useful life 20–40 years
Property yield 6.0%–9.0%
Capitalisation rate 8.0%-12.0%
These recommendations must carefully be verified for each valuation! The key
data are approximate figures.
98
Valuation Parameters of Hotel Properties SPAIN
Data Sheets
Brief description
Classification 3 to 4 Stars
Room fit-out Rooms normally with balcony, some with a view (e.g. with
views in direction sea or mountains). Some include family
rooms, apartments and suites or interconnected rooms,
possibility to provide additional beds.
Catering Several restaurants, bar/café, catering on the terrace,
usually disco/night club
Other facilities Spa area, sport/fitness area, event area (also usable as
convention or conference area), rooms for nursery services,
boutique, tobacco and newsagents
Services Reception, room service, entertainment programme, laun-
dry and dry-cleaning services
Typical operators Barceló, Hotusa (Eurostars), Iberostar, Meliá, NH,
Palladium, Playa, Riu, TRH
Typical guest structure Tourism (leisure), convention and conference guests
Reservation systems Respective homepage and/or catalogue of tour operator or
reservation using travel agencies, own brochure, own
homepage, standard internet platforms
99
SPAIN Valuation Parameters of Hotel Properties
Data Sheets
Special features
Business Often all-year-round, depending on location and offer.
Also limited to specific seasons
Important for on-site Short distances from kitchen to catering outlets
inspection Restaurant sufficiently dimensioned for large events
and for high season
Additional incentives for off-season
Typical revenue distribution Lodging 45%–50%, F&B approx. 45%, others 5%–10%
Others Often all-year-round, depending on location and offer
also limited to specific seasons
Business ratios
Rack Rate €150.00–250.00 per room
Average Room Rate €100.00–200.00 per room
Occupancy Rate 60.0%–75.0% (annual average, but varies enormously)
Bed Occupancy Rate 45.0%–60.0% (annual average, also seasonal)
RevPAR €50.00–70.00 per room
Multiple Occupancy Factor 1.7-1.9
Prices for half-board €15.00–35.00
Average length of stay 4 – 10 days
GOP 20.0%–30.0% of net turnover
Adjusted NOI 5.0%–8.0% of net turnover
100
Valuation Parameters of Hotel Properties SPAIN
Data Sheets
Standard market operating rents €400.00–1,000.00 per room p.m. (incl. FF&E)
Gross income multiplier 12–15
Net Initial Yield 6.0%–7.25%
Market Value
Maintenance €7.00–14.00/m² plus
underground garage
Property management approx. 1% of GRI p.a.
Allowance for risk of rental loss 3%-5%
Modernisation risk 0.5%-3.0% of build cost
Total useful life 15-40 years
Property yield 6.0%–8.0%
Capitalisation yield 8.0%–10.0%
These recommendations must carefully be verified for each valuation! The key
data are approximate figures.
101
Valuation Parameters of Hotel Properties
Data Sheets Overview
102
Valuation Parameters of Hotel Properties
Data Sheets Overview
Business ratios
Rack Rate (per €120.00– €80.00–200.00 €30.00–200.00 € 65.00–120.00 €80.00–200.00
room) €300.00
Average Room €80.00– €70.00–130.00 €50.00–120.00 € 55.00–85.00 €70.00–130.00
Rate (per room) €200.00
Occupancy Rate 65.0%–90.0% 60.0%–75.0% 50.0%–80.0% 60.0%– 75,0% 60.0%–80.0%
RevPAR (per €55.00– €45.00–100.00 €30.00–70.00 € 30 –50.00 €42.00–€104.00
room) €190.00
Multiple Occu- N/A 1.2–1.4 N/A 1.2–1.4 N/A
pancy Factor
Average length of 1-3 days 2 days 2+days 2 days N/A
stay
40.0%–55.0% 30.0%–45.0% of net 25.0%–45.0% 25,0%– 35, 0% 25.0%–40.0% of
GOP
of net turnover turnover of total turno- of net turnover net turnover
ver 10.0%–30.0% of
25.0%–45.0% 6.0%–10.0% of net 8%–20% of 7,0%– 10,0% net turnover (Pre
Adjusted NOI
of net turnover turnover total turnover of net turnover FF&E and Man-
agement)
103
Valuation Parameters of Hotel Properties
Data Sheets Overview
Net Initial Yield 4.50%-8.00% 5.0-7.0% 10.0-11.5% 8.25 -10,5% 7.0% – 9.0%
MV MV MLV MV MV MV
1.0%-1.5% of €10.00– €10.00– €4.00– € 10,00– 3.0% - 4% of Total
Maintenance 12.00/m² 12,00/m² Revenues.
Total Revenue 13.00/m² 13.00/m²
approx.
Property man- 2.0-3.0% of 1–3% of approx. 1,0 %
1% of GRI N/A N/A
agement Total Revenue GRI p.a. of GRI p.a.
p.a.
Allowance for risk N/A ≥ 4% ≥ 4% N.A. > 4,0 % N/A
of rental loss
0.75%–
Modernisation property spe- Property- Property- property- spe-
3.0% of N/A
risk cific specific specific cific.
build costs
up to 60 15–40
Useful life 40-60 years min 60 years up to 60 years N/A
years years
4.75%–
Property yield 4.50%-8.00% 10.0%–11.5% 8,0 %–10,5 % N/A
7.0%
Capitalisation 6.50%–
rate 8.0%
104
Valuation Parameters of Hotel Properties
Data Sheets Overview
Business ratios
Rack Rate (per €100.00–300.00 €80.00–180.00 €80.00–160.00 €80.00–200.00 £120.00–
room) £300.00
Average Room €75.00–150.00 €65.00–100.00 €60.00–110.00 €70.00–120.00 £80.00–
Rate (per room) 70.0%– £200.00
Occupancy Rate 55.0%–75.0% 60.0%–70.0% 45.0%–55.0% 60.0%–80.0% 70.0%–95.0%
95.0%70.0%–
RevPAR (per €42.00–112.00
95.0%room €40.00–70.00 €30.00–60.00 €40.00–100.00 £55.00–
room) £190.00
Multiple Occupan- n.a. estimated at
1.2– 1.4 1.2-1.3 as the 1.2– 1.4 1.2– 1.4 N/A
cy Factor
most of the guests
travel alone for
Average length of
2 days business purposes 2 days 2 days 1-3 days
stay
1.3 – 1.4 days
MV MV MV MV MV
€10.00–15.00/m² MLV 1.0%-1.5% of
plus underground € 5.00–10.00/m² €7.00–10.00/m² €8.00–14.00/m²
Maintenance Total Revenue
garage
These recommendations must carefully be verified for each valuation! The key data are
approximate figures.
106
Valuation Parameters of Hotel Properties
Glossary
5 Glossary
107
Valuation Parameters of Hotel Properties
Glossary
The Rack Rate is the official room price, which must some-
List price of
times be determined on a daily basis, but in many cases can be
a room (Rack
researched using the internet, hotel prospectuses and displayed
Rate)
price lists.
108
Valuation Parameters of Hotel Properties
Glossary
The Net Initial Yield in the property sector is the quotient from
Net Initial Yield
the Gross Rental Income (Net Rental Income of the first year of
(gif)
the lease, corresponding to operating lease rent), adjusted by
the liquidity-related operating expenses, and the purchase price
(Market Value) plus purchaser’s costs (Real Estate Transfer
Tax, notary and court fees, brokerage fees). Liquidity-related
operating expenses include expenses for property management
and hypothetical maintenance costs.
Net Initial Yield (%) = Gross Rental Income – liquidity-related
operating expenses / Market Value + Purchaser’s costs
109
Valuation Parameters of Hotel Properties
Glossary
110
Valuation Parameters of Hotel Properties
Checklist for Hotel Valuations
111
112
Valuation Parameters of Hotel Properties
Glossary
113