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Hanbi Textile tell you How to increase the value of hotel assets?


1. Currently, there are several valuation methods for hotels on the market:   


1.1 Comparative method (market value)    

In the actual hotel assets trading market, the selling price was obtained excluding the influence of non-contractual factors. This data is an important reference base for the evaluation of the hotel.    

1.2. Cost method (replacement value)    

Refers to the cost of reconstruction, purchase of facilities and consumables for the hotel. This algorithm is mainly used to calculate the amount of fire insurance and is not very useful for determining the value of the business.    

1.3 Equity method    

The value of net assets contains the most important factors of production of enterprises and determines the ability of enterprises to produce goods and provide services. The net asset value of the hotel is calculated mainly on the basis of the book value and the gross operating area or the volume and the useful land area.    

The scope of the OEM calculation is limited to the valuation of hotel properties. At best, net asset value can only be used as an aid in estimating the state of the transaction.   


1.4 Income method    

Refers to the expected annual goodwill of the property. Critical to the value of a hotel is having the resources to achieve sustainable profitability. Therefore, the value of a hotel is based on the profits expected in the coming years and the resulting accounting revenue or cash flows.    

The income method is the most widely used and recognized method of valuation in the assessment of hotel assets by appraisers and professionals.    

2. The focus of the work on maintaining and increasing the value of the hotel's assets    

The focus of maintaining and valuing hotel assets should be on how to use limited investment and limited hotel facilities to create maximum cash flow. Under the circumstances, how to improve the investment and operational efficiency of the hotel, start with market placement, facility planning and operation management and formulate plans for a reasonable increase in revenue and cost control to improve the operating cash flows and ultimately achieve the highest return on investment.the goal of maximizing the value of the hotel.    

3. The focus of maintaining and valuing the hotel's assets - placing in the hotel market    

3.1 Find the most suitable position for the hotel according to the competitive situation of the hotel market and the forecast of future development trends, the existing conditions of the hotel plot, the development strategy of the owner and the requirements of the hotel management company, including: purchase of customer sources, Degrees, operating system settings and resource allocation, etc.    

3.2 Maximizing the efficiency of hotel floors - design and design of facilities    

Pay attention to the profitability and return on investment per unit area of the hotel and make full use of every inch of the hotel area through sensible design to increase revenue and profits.    

Try to apply the concept of sustainable development, including energy saving, environmental technology, etc.    

4. The focus of hotel asset value preservation and appreciation - capital budget and investment and financing arrangements

Develop a reasonable hotel capital budget and investment and financial structure and arrangements.    

5. The Focus on Building Conservation and Valuing Hotel Assets - Choose a Hotel Asset Manager    

Separation of hotel management and ownership    

5.1 Select hotel asset managers in development    

Choose an experienced hotel developer to work with the hotel management company's technical department and related design companies / consultants / construction units.    

5.2 Choose a hotel management company / brand    

Choose the most appropriate hotel management company / company for the project placement If the location and idea of the hotel brand is consistent with the overall project design idea it is the primary factor to consider when choosing a hotel management company.    

5.3 Select the representative of the hotel owner    

The interests of the hotel management side and the owner side are not entirely consistent. An experienced owner representative is required to assist and oversee the management and operation of the hotel and to coordinate interests between the hotel management side and the owner side.   


5.4 Negotiating a hotel management contract    

Hotel management contracts play a very important role in the maintenance and valuation of hotel assets. It is necessary to improve and balance the balance of rights and obligations between owners and hotel management companies under contract terms.    

6. The focus of maintaining and valuing the hotel's assets - make full use of the property insurance offered by the hotel brand    

Including the goodwill premium formed by the business reputation of the hotel, as well as the overflow value offered by the name of the hotel management in the hotel.    

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