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 United States.