Motel Valuation

What is involved in the valuation?

In relation to the Management & Letting Rights business, factors such as;

• Location - E.g Beachfront, Riverfront, inner city, outer city etc
• Business type - Long Term Let, Short Term, mixed Long Term & Short Term Let, Student Accommodation, Over 55s Accommodation etc.
• Module Type - Accommodation Module, a maximum 25 year Agreement or Standard Module, a maximum 10 year Agreement.
• Ratio of Units in the Letting Pool, Owner Occupied, Outside Agents vs Total Units in the Complex.
• Leaseback/Rental Guarantees/Performance Undertaking Agreements - Are there any units where the current manager is responsible for any payment(s) to the Lot Owner (Investor)?
• Reported Net Operating Profit - Is it prepared by an MLR Specialist who knows Industry Standards?
• Return on Investment of the total purchase - i.e What is your return including the Managers Real Estate and MLR business.

The above needs to be established as different multipliers are attributed to different businesses. Unfortunately, it is not a simple practice of applying the same multiplier to every business.

More information

By engaging Accom Valuers, it will provide comfort knowing that you are looked after by specialist MLR valuers.

We are here to help, please feel free to contact us.

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