The type of developer who would be interested in the type of scheme you are proposing. In respect of that developer what would their likely funding source be in light of the current economic conditions that we find ourselves in.
not expecting the level of detail did for the retail essay! As long as you are sensible about the assumptions you make and a brief discussion of the economic conditions.
This element should critically appraise the different methods of funding development projects and should clearly set out the most appropriate method of funding the development scheme proposed by the group given current economic circumstances. including tables, valuations, appendices and drawings.
Surbiton Police Station, 299 Ewell Road, Surbiton, Surrey, KT6 7AE.
Sales particulars for this property are available on study space.
Your Client, a small property development company is interested in purchasing this property. The Client may decide to refurbish or redevelop the site, or they may hold the site whilst adding to its value before disposing of it in a few years time.
You should advise the Client on the sales procedure, and any particular clauses which may be of particular concern or note. Any impact on valuations should be clearly identified and explained.
Discussion of ideas and recommendations must be based on solid, substantiated evidence. Evidence of substantial research will be rewarded appropriately. Communication must be clear, effective and error-free throughout the report.
The following should also be used as guidance:
??Direct speech including writing in the first person (e.g. I, we, you, etc.) is inappropriate for academic/professional reports and must be strictly avoided
??Short and clear sentences must be preferred in order to avoid slipping into note form
??All abbreviations must be explained.
A number of sources of information are listed on study space. In addition to these sources you are expected to use references mentioned in lectures, and those identified by yourself as needing to be addressed in the coursework brief. Evidence of independent reading and research will be rewarded. A list of references must be presented at the end of the report listing all the bibliographic sources cited in the main report.
Specific Criteria for individual paper
Appraise and evaluate funding techniques, including the calculation of funding options in support of development proposals.
Demonstrate critical knowledge of corporate funding and evaluate the relationship between the availability of funding and the design and development process.
79 Valuation of a 50-bedroom hotel
The property is an established 50-bedroom hotel in a provincial city.
The usual approach is to value these types of properties on a profits approach. The valuer will
carry out an analysis of the accounts of the hotel in order to assess the sustainable earnings
that the hotel will make.
The valuer could use the actual earnings from the previous year, or the average of the last
three years. In this example, the valuer has assumed that the 50 beds will let at an average
room rate (ARR) of ?55 per night, and that the hotel will be 70% occupied throughout the year
The total income is therefore just over ?700,000 per annum.
In this simple example, the hotel does not have other sources of income, such as from a
restaurant or bar, or other services.
The valuer has then deducted the key costs that the owner will incur, which are typically staff,
business rates, repairs, laundry and promotion. It appears that the hotel will generate a cash
surplus of around ?350,000 per annum.
The valuer has then adopted a simple multiplier on earnings, which should be based on
evidence of transactions. In this example, the valuer has adopted a multiplier of eight.
Note that the valuer has carried out a simple analysis of the answer by dividing the total value
into the number of rooms. The valuation equals ?56,000 per room, which the valuer checks
with evidence of sales.
Valuation of a 50-bedroom hotel
Gross annual income
Number of rooms 50
ARR ?55 per night
Occupancy 70% x 365 nights
Business rates ?75,000
Total costs ?350,000
Multiplier EBITDA on earnings 8
Per room ?56,000
80 Major city centre hotel
The property is a high rise hotel, which has recently opened in a major city centre. It has 250
bedrooms, along with a 150 cover restaurant. The hotel is four-star.
As in the previous example, the valuer has prepared the valuation on a profits method.
The valuation assumes that the hotel will achieve an average room rate (ARR) of ?125 per
night and is 85% occupied throughout the year.
The valuation has also explicitly taken account of the restaurant. The valuer has assumed that
the restaurant will be 75% occupied and that, on average, patrons will spend ?20 per cover.
From an analysis of the accounts and the benchmarks in the industry, the valuer has adopted
a simple profit margin of 55% on total income. Based on comparable evidence, the valuer has
adopted a multiplier of 12.5 on earnings before interest tax depreciation and amortisation
A-Research-Paper.com is committed to deliver a custom paper/essay which is 100% original and deliver it within the deadline. Place your custom order with us and experience the different; You are guaranteed; value for your money and a premium paper which meets your expectations, 24/7 customer support and communication with your writer. Order Now
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.