Arbitrage Real Estate was instructed to value a hotel portfolio on the island of Rhodes for financial reporting purposes. The portfolio consisted of 2 hotel units, with total capacity of 538 rooms and 1,070 beds, developed in a coastal land plot of total surface in excess of 100,000m².
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. Furthermore, there had been performed a targeted market research and collected data related to local and regional hotel vacancy rates, information about the local touristic market and data related to sale prices of development sites and sea front plots of land, targeting mainly on the eastern region of Rhodes island. Furthermore, the valuation team was responsible for the analysis of financial data linked to the operation of each hotel unit, which were later used as inputs in the valuation models utilized during the portfolio’s assessment.
The adopted basis of valuation was the Fair Value and had been 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. In order to support conclusions of the valuation, the Profits’ Method had been used as a complimentary method of validation.