The Hospitality industry is closely tied to, if not a
subset, of the real estate industry. The travel, leisure, recreational, food
service, lodging and entertainment businesses in many cases are hard to
separate, especially in large multi-faceted complexes such as resorts or
conference centers. As in most other industries, there has been significant
change in the Hospitality industry in recent years. Issues such as the cost of
travel and general economic conditions play a big part in the evaluation of
Hospitality properties. Other issues more within control of the owner of such
properties and which may affect value include competent management and property
condition. The Hospitality industry, in most instances, is more of a business
than just real property. Properties which are not under competent and
professional management will demonstrate lower Market Values than those which
are. Many if not most Hospitality properties will be appraised as going
concerns, and out of necessity, will include personal property and business
goodwill. This is contrary to most real estate evaluations and can present a
challenge to the less than experienced appraiser.
