Hotel valuations are unlike commercial or private property valuations especially in the case of heritage sites such as the Houw Hoek Hotel. These valuations are a highly specialised form of appraisal and require not only the general principles of professional valuation but also an in-depth knowledge of hotel operations. Over and above valuing the property itself, calculations must include a myriad of elements such as assets, hotel occupancy, revenue and forecasts to be valued as a going concern.
Built in 1779 and famous for owning South Africa’s first liquor licence, the Houw Hoek Hotel required heritage valuation expertise as well, since the hotel has retained much of its original architecture, comprising 53 rooms with conferencing facilities for 120 people, an à la carte restaurant and the ‘Hitching Post’ pub. Other amenities include a squash court, two swimming pools, a tennis court, volleyball court, putt-putt course, three boreholes and a generator.
According to Gavin Commins of The Valuator Group, who offered the parties professional valuation services on terms of the successful sale, valuating hotels is not a cut-and-paste exercise. “We approached all parties explaining the importance of having an independent professional valuation which would give both the sellers and potential buyers peace of mind that the value was 'fair value' taking into consideration all the factors that need to be considered in a sale of this nature”.
Tony Collins, senior valuer for the group carried out the valuation. Once the valuation had been prepared, a fair market value was agreed with the sellers and a sale was concluded by Greeff Properties within six weeks.
