Value the freehold interest in an established country house hotel for investment and renovation purposes. The business has been owned by the same family for over 30 years
26 letting bedrooms, with a significant food and beverage offering
A detailed analysis of the accounts and future trading potential (in the hands of a reasonably efficient operator - REO) helped the bank identify/strip out any personal goodwill, as the borrower had traded the property for 30 years+
Value the freehold interest in a 52-bedroom hotel, for loan security purposes - to enable the owners to purchase another business
The hotel had recently been extended and refurbished and a large bar doubling as a breakfast area was created on the ground floor from a previously under used restaurant/conference space. The hotel benefitted from strong leisure and tourism trade and also from a growing midweek corporate trade
Following the completion of the extension, the hotel had yet to trade at full potential, therefore we based our valuation on a discounted cash flow forecasting the improved trade performance, based on benchmarking the trade at similar hotels.