The HypZert Professional Group Hospitality & Restaurant Industry has published a new brief study.
It deals with the valuation of hotel properties in the context of the COVID-19 pandemic.
Hotel properties are particularly affected by the impact under COVID-19. On the one hand, a lack of overnight stays leads to reduced turnover. On the other hand, state aid programmes as well as cooperation between operators and investors have led to a mitigation of the negative impact on earnings.
It should also be noted that many hotel operators were confronted with the crisis from a strengthened position: The extremely successful period with around ten years of growth in turnover, gross and net operating results has also meant that reserves could be built up in many cases.
All these circumstances characterise the complex framework valuers are currently facing when valuing hotel properties. But where do we go from here? Are we dealing with a "one-off effect" or will there be lasting changes in the hotel market and thus also for the market values of hotels?
The HypZert Professional Group Hospitality & Restaurant Industry discusses the current situation in this brief study and provides assistance in answering the upcoming questions for the determination of market and mortgage lending values.
We thank the members of the Professional Group, Matthias Dobrick, Helmut Keber, Heike Kemme, Julia Kneist, Ralf Lamprecht, Christine Mayer, Prof. Dr. Werner Pauen and Ulrich Peters, for this valuable piece of information.
As usual, HypZert valuers will find the study in the library of your Valuers Corner.
