Operating Hotel Properties are typically appraised as going
concerns, as opposed to merely the Fee Simple Real Estate on which they stand.
The property appraised as a Going Concern will have what some have called
Complete Value, which includes the Fee Simple Value of the real estate, all
tangible personal property used in the operation as well as all intangible
property, to include that of the goodwill of the business. In cases where a
Hotel Property is closed for business, it may be appraised for its Fee Simple
Real Estate Value without regard to its furnishings or other personal property
associated therein. The Going Concern Value appraisal will place significant
emphasis on the profitability of the property, as it is truly a business and
not just real estate. Appraisers must take care to keep their terminology
straight depending which value is sought and include the value of whatever
interest is appraised.
ELLIOTT® has had substantial experience appraising Hotel
Properties throughout the country. We are available to address Going Concern
Value or Fee Simple Real Estate Value as the case may dictate anywhere in the