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Outlines the context within which the need for valuations of leisure property is developing. Arguing that the profits method, usually adopted for the valuation of leisure assets, is little understood on a research‐based theoretical level, introduces the initial findings of research into practitioner understanding of the method, in particular the capitalization rates adopted. Also suggests that the time is right to critically re‐examine the methods used in practice and sets out suggested pre‐requisites for the development of a sustainable and defensible approach to the valuation of commercial leisure property.

Considers that the relationship between a property′s trading potential and the tenant′s ability to pay rent is the basis of one of the five recognised methods of valuation: the profits (or accounts) method. Discusses the basic concept behind the methodology and investigates the circumstances under which surveyors currently use profits within their valuations. Concludes that more discussion between valuers and their clients on how they arrive at their valuations and the definitions of value that they use would be beneficial.

Outlines 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 casestudy to illustrate these various principles, their application and the resolution of differences where these arise. Describes the differences between hotels and other types of property and discusses the need for the valuer to have specialist knowledge of the market to assess the capital value accurately.

The purpose of this paper is to explain the rationale and methodology applied to the rental valuation of wet led (i.e. pub or bar) retail leisure outlets. The paper does not cover the valuation of other leisure property (e.g. restaurants, hotels).

The paper opens with a brief outline of the factors and legislative changes which have shaped the public house market over the past 15 years. This is followed by a explanation of the rental valuation methods in use in the pub and bar sector and examination of the impact of some current issues – in particular the impact of the full implementation of the Licensing Act 2003 along with other legislative and regulatory changes. Finally the paper comments on some of the issues relevant to freehold investment purchases of public houses and bars.

As a consequence of the nature of the industry, profits based valuations continue to dominate the market and this raises difficult questions of method and interpretation particularly, as the market is further complicated by legislative and regulatory changes introducing greater uncertainty. With regard to public house and bar freehold investment changes in the structure of the market have had a significant impact on perceptions of the investment quality of the leisure sector with consequences both for flows of capital and the structure of yields in the market place.

Valuers need to be aware that freehold investment values in this sector have potentially peaked and that investment decisions in the sector should be based upon sustainable rent.

The paper is of use to all valuers in this niche market and provides a practical understanding of the profits test method of valuation from which a sustainable rent may be derived.

Reviews past and current methods of valuation, analyses rental growth and explains the thinking behind bids made by players in this developing market. Provides sample valuations for a variety of pub rentals. Concludes that there is scope to increase the reliability of profits method valuations.

The purpose of this paper is to establish whether a terminal value is a substantial amount of the final figure in a hotel’s valuation. Malta’s scenario has been delved into. This due to the fact that owing to Malta’s high population density and its restrictive land area, land values attract a high premium as compared with larger developed countries. Other matters such as earnings’ multipliers derived from a cap rate (initial yield), CAPEX has also been delved into.

The methodologies adopted in hotel valuation practice has been delved into. An extensive literature review is undertaken to analyse the earnings multiplier adopted by various authors over the past 30-year period. The hotel cap rate (initial yield) has been compared with similar yields adopted in the institutional and property markets and then compares to market-based data. A discussion is undertaken on the validity of adopting discounted cash flow, as against the short cut market appraisal approach. Capitalization rates, cap rates have also been referred to as obtained from the academic and practitioners field and compared. Depreciation and the anticipated annual accommodation charges have been analysed. A database of hotel rooms value over the past 20-year period has been referred.

A table outlines the earnings’ multipliers in perpetuity or for the limited expected design life for various cap rates. This data will act as a guide in guiding practitioners to establish an earnings’ multiplier to be applied in their valuation methodology. An example in the Appendix clarifies the manner in which this data table is to be utilized. The finding of this example notes that for this hotel in Malta, as constructed on private land, the terminal value for this development hovers around the 30 per cent of the market value.

This analysis is based on five valuations as undertaken on five hotels in Malta with classification grades varying from III to V. This notes that the terminal value varies within a range of 9-45 per cent of the total value. This analysis has to be undertaken for other countries for a global range of land terminal values percentages to be established.

Establishing the terminal value of a hotel business, will offer greater security for secured lending facilities required. It will further act as an important tool to establish the feasibility of a hotel development.

Updated insight is given to existing hotel valuation methodologies by delving into the workings of the earnings’ multiplier and establishes that in today’s market the terminal value of the hotel basis has to be accounted for. The above findings are based on a link between theory and practice.

Sees the objective of teaching financial management to be to help managers and potential managers to make sensible investment and financing decisions. Acknowledges that financial theory teaches that investment and financing decisions should be based on cash flow and risk. Provides information on payback period; return on capital employed, earnings per share effect, working capital, profit planning, standard costing, financial statement planning and ratio analysis. Seeks to combine the practical rules of thumb of the traditionalists with the ideas of the financial theorists to form a balanced approach to practical financial management for MBA students, financial managers and undergraduates.

Briefly outlines the history of the valuation and appraisal of licensed premises since the 1950s and discusses how the system has evolved through the course of years in line with market trends. Analyses the resultant changes in the methods of appraisal in respect of the public house and details the several constituents of standard such appraisal. Suggests that the traditional methodology for this type of property is no longer appropriate in today′s marketplace.

Annual update on caselaw relating to compulsory purchase and compensation. This paper aims to discuss these issues.

Research of decisions made by the Court of Appeal and lands tribunal in the filed of compensation. Commentary on the legal and valuation implications of a selection of those decisions.

In the last year there have been a number of interesting cases concerning whether losses based on the value of land can be claimed under the head of disturbance.

The research is naturally limited by the caselaw available in the last 12 months but this has been a relatively busy year.

The commentary should assist practitioners to formulate claims for compensation having regard to recent developments in case law.

It is originality and value relies on the fact that it is based on new legal decisions which have not yet been widely reported.

Considers the problems of rating valuations for street and indoor markets. Discusses the most suitable way to solve them using three different types of market as examples. Queries whether the rates bill should be charged to the landlord or the occupier of the individual stall. Provides guidelines for the rating valuation of markets throughout the country.