Arbitrage Real Estate was instructed to value a hotel portfolio on the island of Corfu for financial reporting and debt restructuring purposes. The portfolio consisted of 3 hotel units, with total capacity of 530 rooms and 921 beds, developed in a coastal land plot of total surface in excess of 300,000m².
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 surveyors performed a targeted market research and collected data related to local and regional hotel vacancy rates, information about the local touristic market and verified evidence on sale prices of development sites and plots of land in close vicinity to the hotel units areas.
The adopted basis of valuation was the Fair Value and was delivered in compliance with the International Valuation Standards (IVS) and Royal Institution of Chartered Surveyors (RICS). In the subject case, values were assessed with the combined use of the Comparative and the Depreciated Replacement Cost Method.