Eddisons Taylors have always been heavily involved in the hospitality industry at all levels and can draw upon the wide ranging experience of a number of sector specialists as well as our own extensive database.
This sector is one which is crucial to the economy in terms of both the domestic market and in generating foreign tourism and has seen wide fluctuations in its fortunes over recent years. The provision of the best professional advice is our paramount concern.
As with all of the business sectors with which we are involved, properties that are fully equipped and trading as operational entities are normally valued by reference to their estimated trading potential as at the date of valuation. The task of the valuer is therefore to assess trade on the basis of a competent operator rather than simply an existing operator. Current performance may, in cases, either overstate or understate the market's assessment of trade. This makes it critical to have the benefit of in depth sector experience allied to the local knowledge of the valuer in the field to be able to critically appraise the strengths and weaknesses of any hospitality business. The key is to keep close to the market and understand the perceptions of prospective purchasers at any particular time.
The hotel industry is particularly wide ranging in its scope, extending from small bed and breakfast establishments through to country house style operations up to major branded corporate hotels. Taylors have first-hand experience of all these market segments.
A hotel can produce wide ranges of profitability due to the difference in profit margins dependent on the particular source of income. For example, a hotel producing a significant proportion of its income from letting accommodation receipts can be twice as profitable as one dependent largely on food and beverage sales. The 'rules of thumb' on profitability and market value sometimes employed by the uninitiated need to be treated with the utmost caution!
The Supply of Beer (Tied Estate) Order 1989 (often referred to just as the Beer Orders) signalled the start of what has been a period of fundamental change for the licensed trade. The resultant restructuring of the brewery estates saw the emergence of pub groups such as Punch and Enterprise which themselves have since been forced to rationalise their estates, in turn creating opportunities for the free trade owner operator. The availability of cheap supermarket beer, the impacts of an economic recession, the smoking ban implemented in 2007 allied to a general change in customer attitudes has sadly seen the demise of many a traditional 'boozer'.
However, this period has also seen the relaxation of the licensing laws and the creation of opportunities for skilled entrepreneurs who closely understand their particular market to "give people what they want". The task of the licensed property valuer is to be able match this market understanding and to be able to appraise the merits or otherwise of each business individually.
This sector encompasses a wide range of businesses and properties including (but not limited to):
These businesses are normally valued on the basis of their turnover and profitability, either existing or projected. Our team has extensive experience in these sectors and we would welcome the opportunity to discuss potential instructions with you at any stage.