combination motel/bar/restaurant

[Anonymous]

hello commercial gurus--

Need some good pointers on reference books for appraising a
combination motel/bar/restaurant. I am thinking of ordering
AI's reference and Cornell University's reference data on motel valuation, any suggestions. thanks.

 

[Paul Ness MAI]

Don't know where to tell you to go for a book. Rushmore's book on hotels is more for larger properties.

First, are you appraising the real estate only or the going-concern? If you are appraising the going-concern, don't forget you need to allocate realty and non-realty assets (FF&E and intangibles). I took a new AI seminar last year on separating tangible and intangible assets. The reason for creation of the seminar was that there is a need for uniformity and clarity in terminology if not also methodology. It was an excellent class.

One major point was that most appraisers probably don't give enough value to intangibles. However, from your brief description, there probably is very little in the way of intangible assets (franchises, workforce in place, a 'name' chef, etc). In PA, a motel liquor license may have little value since almost any motel can get a "motel liquor license". A standard liquor license may have little value or a lot of value depending on the population of the area and the number of licenses in existence since the number permitted is tied to population. There may be a waiting list for a standard license. So, you need to find out what type of liquor license is there for one thing. Good luck with it!

 

[Paul Ness MAI]

Frank I see you are in North-Central PA. Are you in the Central PA Chapter of AI? We cover that territory. Check out our site at www.aicentralpa.com. We also have an email forum you can link to from there that will be broadcast to all our members, if you'd like assistance with your assignment in any way or help finding a book. Check it out