Arbitrage Real Estate was mandated to assess the investment value of a 5* hotel on the island of Zakynthos. The property consisted of 21 villas with private swimming pools and a total capacity of 119 beds, on a land plot of c. 21,000m².
Arbitrage valuation team carried out the onsite audit, the market research and the valuation assessment.
The team studied the submitted documentation, audited the properties in terms of building quality, facilities maintenance adequacy and planning conformity, as well as environmental and health & safety compliance. Additionally, the valuation team performed an extended market research and collected data related to local and regional vacancy rates regarding 5* furnished villas accommodation facilities, information about the local touristic market and verified evidence on latest transactions on Zakynthos island. The valuation accounted for a renovation schedule planned and budgeted by the client as well as for its outstanding loans to assess the efficient debt structure that secured both business viability and solvency towards its creditors.
The adopted basis of valuation was the Investment Value (Worth) and was delivered in compliance with the International Valuation Standards (IVS) and RICS Professional and Valuation Standards, with the use of the Profits’ Method.
