Towards a valuation framework for hotels as business entities
International Journal of Contemporary Hospitality Management
ISSN: 0959-6119
Article publication date: 1 February 2001
Abstract
Presents an evaluation of the theoretical context and practical application of different methods of hotel valuation, with particular emphasis on the methods related to the income‐generating capacity of a hotel. The findings reveal a wide range of variation and complexity between methods and that each method has benefits and limitations and requires adjustments and assumptions in different market conditions. However, it is concluded that the more sophisticated “income‐based” income capitalisation methods constitute the most effective basis for a framework on which to derive the open market value for a hotel as an ongoing business entity, but that one or more of the other main valuation approaches should be drawn on in order to effect the reconciliation of a hotel’s final value.
Keywords
Citation
Nilsson, M., Harris, P.J. and Kett, R. (2001), "Towards a valuation framework for hotels as business entities", International Journal of Contemporary Hospitality Management, Vol. 13 No. 1, pp. 6-12. https://doi.org/10.1108/09596110110365580
Publisher
:MCB UP Ltd
Copyright © 2001, MCB UP Limited