Valuation of Hotels by Martin Hattersley (UK)

Synopsis

Hotels are a type of resort property. This paper attempts to illustrate the methodology in common use in the valuation of hotels and leisure property in the United Kingdom at the present time, dealing first with the general principles involved and then proceeding with a case-study to illustrate the various principles involved, their application, and the resolution of differences where these arise.

Synopsis

In this paper, the evolution of mass rapid transit (MRT) is investigated in relation to the Hong Kong market and, by a series of case studies, the effect of surrounding land values is discussed and analysed.

Synopsis

All valuations are for statutory purposes, be it for compensation or taxation, are carried out against the backdrop of the legal provisions of the relevant statute. In all cases, the valuer must not only be familiar with the statutory provision, but must be aware of the courts' interpretation of these provisions. In such circumstances, the valuation methodology may come under question and therefore, a flexible, adaptable approach should be adopted.

Synopsis

The American real estate industry has in recent years suffered from a proliferation of litigation in relation to professional negligence. But the residential market and the commercial sector have been affected to such an extent that it is no longer clear whether the decision-makers take any responsibility for their actions, but rely solely upon the real estate professional to act as a guarantor of the transaction.

Synopsis

There is a growing awareness in the valuation profession of the need to offer a "duty of care" to the client and to accept responsibility for the advice given. No longer will the practice of multiple disclaimers distance the valuer from the advice provided. Only by acting in a clearly professional manner will the valuer be able to avoid the potential liability for professional negligence. This paper discusses relevant case law in several Commonwealth countries and suggests a "checklist" to help the valuer in this regard. It was prepared before the decisions in Smith v Eric Bush and Harris v Wyre Forest DC in the House of Lords (1989) 2 WLR.