Valuation of a hotel is not the same as that of other properties. Though there could be some common points and similarities, you have to bear in mind that there are completely different factors that need to be taken into account. When valuing a hotel, location plays a very important role. This is the same with other properties too. However, as far as a hotel is concerned unless the location is good it might not be feasible to move ahead in the matter. Hotels run on customers and customers always look for locations that are easily reachable and logistically well situated.
Further when it comes to the method of valuing a hotel, as hotel owners you should be aware that most of the valuers are comfortable going in for the revenue model. They look at the possible revenues from a hotel for the medium and long term based on which they come out with a valuation. While the cost that you have incurred is an important component, unless you have revenues coming from such en expenditure the whole exercise would become futile to say the least.
Another important aspect that should be considered when buying old or new hotels, is the quality of construction and the rooms that are available. It should also take in to account the quality of amenities and services that are offered to the customers. The human resources that you plan to have for your new hotel will also be factored in by property valuers before coming out with the final report. Hence, all these points need to be taken into account when going in for a hotel buyout. You have to be closely coordinating with your valuer to ensure that you are buying the best hotel at the best possible prices.