The Valuation Expert for Hospitality, Tourism and Leisure Being “Financeable” How to finance in turbulent times
Key Risks Refinancing Level of debt carried / maintaining compliance / refinance maturing facilities Earnings uncertainty Challenging conditions facing operators / service charges / staff / creating a “point of difference” Asset value of freehold investments Investors / demand / increase in capitalisation rates
Operator Performance Improving the “bottom line” Key areas - Advertising – marketing – internet - Donations - Service Charges - Repairs – maintenance – replacements - Wages and Salaries - Broaden depth of operation
Value Considerations Not generally sold in the market as a “going concern” Business doesn’t have “value in exchange” Value to membership Freehold land and buildings – return on affordable rental Alternative Use value