Arbitrage Real Estate was instructed to value a leisure portfolio on the island of Zakynthos for financial reporting and ownership restructuring purposes. The portfolio consisted of a 4* and a 5* hotel units respectively with a total capacity of c.300 beds.
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 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 valued with the combined use of Profits' Method and Residual Approach.
