Loan Security Valuation for a Holiday Inn Express, Scotland

Our Hotel + Leisure Valuation Team were instructed by the Lender for the purposes of re-finance to carry out a Loan Security Valuation on a 100+ bedroom Holiday Inn Express branded hotel in Scotland, which was subject to a ground lease.

APPROACH

Our Hotel + Leisure Valuation Team carried out a detailed DCF (Discounted Cash Flow) Appraisal for the substantial hotel and business. A thorough analysis was undertaken of the prevailing market together with an assessment of ongoing trading potential at the hotel.

KEY CHALLENGES

The hotel was in a period of growth following a brand ‘generation’ upgrade and refurbishment, therefore appraisal of performance trends and trading potential was key, as was a sound understanding of the operational costs and profit potential.

There was a long-term ground lease in place, along with a franchise agreement and a hotel management agreement. A wide range of both local and national evidence was appraised as part of the process in order to consider the ground lease in relation to funding, marketability and resultant value.

ADDED VALUE

The team used their expertise and knowledge of both local and UK markets to provide appropriate valuations and advice in relation to the asset. Turnaround of our report and valuation was required in a short timeframe by the lender.

WHY G+S

Our experienced team of RICS Registered Valuers undertake valuations for a wide variety of purposes. We provide secured lending valuations to all the major high street and challenger banks and understand their specific requirements. Additionally, we undertake valuations for pension fund purchases and reviews, internal accounts valuations, acquisitions and disposals, development and feasibility projects and expert witness cases.

We are the valuers of choice for a broad range of clients. We are the trusted partners of many businesses, ranging from SMEs to larger international companies, and the public sector.

Our team provides help every step of the way, using their expertise and experience to provide the best mix of advice and professional support. Our Valuers work closely with our experienced team of Commercial Agents and in-house Researchers to ensure our Reports and Valuations provide detailed commentary on market conditions and other factors influencing value.

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