scholarly journals HOTEL PROPERTY VALUATION IN A PANDEMIC ECONOMY: A STRATEGIC STUDY OF IMO CONCORDE HOTEL OWERRI IN 2020

2021 ◽  
Vol 2 (1) ◽  
pp. 22-31
Author(s):  
Chikezie Okoronkwo ◽  
◽  
Esther Oladejo ◽  
Okoronkwo Henry ◽  
◽  
...  
Keyword(s):  
Real Estate ◽  
Financial Statements ◽  
Cash Flows ◽  
Operating Income ◽  
Property Valuation ◽  
A Value ◽  
Capitalization Rate ◽  
Strategic Study ◽  
The Cost

Of all classes of real estate, the hotel property is so unique in character and structure that assigning a value becomes the most intriguing aspect of the profession of Estate Surveying and Valuation. The uniqueness of the property rests partly on its distinctive outlay as against the business potential. Incidentally, most valuations of this property rely on the propensity of the property to produce acceptable returns to pay off the cost of investment and the management. Being that as it may, the quantum of externalities that play varying roles in shaping the final value of a hotel property is such that any professional must be careful not to circumvent even the minutest of considerations. It is all too known that the value of real estate rises and falls with the character of the neighbourhood and region where it is located. Hotels values are not different and in addition rise and fall with the whim of fashion and the fortunes of the region of location. This study examined not just the different methods and approaches to the valuation of a hotel property but also explored the benefits of other micro economic parameters that play significant roles in establishing the basis of any monetary index that could be referred to as value by conducting a comprehensive review of the hotel itself in comparison with its competitive market to confirm whether the hotel is under- or over performing against its competitors the intention being to have a grasp of the income-generating ability of the property upon which the application of a capitalization rate will convert the estimated cash flows into an estimated value. Though a 5 star hotel was used as case study, the outcome is applicable to all hotels carrying on business in Nigeria and other parts of the world. The study recommends among others that Estate Surveyors and Valuers involved in the valuation of hotels need to be skilled in reading financial statements and translating them into stabilized net-operating income because as much as hotel properties are physically different, in different locations, and with different management; volatility of the hospitality market and the external factors are bound to affect value. The study revealed that in so much as the travel patterns of lodgers were affected by the Covid 19 pandemic bringing with it a crash in the income-generating potential, the value of hotels was not so affected especially with relation to furniture, fittings and equipment.

scholarly journals Calculation and Spatial Distribution of Capitalization Rates in the Selected Segment of Reality Properties

2016 ◽  
Vol 4 (2) ◽  
pp. 37-50
Author(s):  
Eva Ardielli ◽  
Jiří Ardielli ◽  
David Slavata
Keyword(s):  
Spatial Distribution ◽  
Real Estate ◽  
Real Estate Market ◽  
Real Property ◽  
The Real ◽  
The Real Estate ◽  
Property Valuation ◽  
The Real Estate Market ◽  
Capitalization Rate ◽  
Apartment Ownership

Abstract The process of real property valuation by usage of income approaches is significantly affected by capitalization rate. This article deals with problematic of the capitalization rate determination in the real estate segment of apartments in the Ostrava city. It primarily aims to calculate the level of gross capitalization rate according to different urban localities of Ostrava, for various sizes of apartments, as well depending on the type of apartment ownership. The analysis of the real estate market is an important part of the research. It is focused on the offer of apartments from the perspective of market apartments for sale and also of market apartments for rent. The analyzed and calculated spatial values distributions are consequently processed into cartographic outputs.

scholarly journals International Real Estate Review

2018 ◽  
Vol 21 (1) ◽  
pp. 113-143
Author(s):  
Maurizio d’Amato ◽  
◽  
Paola Amoruso ◽  
Keyword(s):  
Time Series ◽  
Real Estate ◽  
Time Series Analysis ◽  
Property Market ◽  
General Introduction ◽  
Property Valuation ◽  
Valuation Method ◽  
A Value ◽  
Income Approach ◽  
Approach Method

Whilst the property market shows cyclical behaviours, opinions of value based on income approaches assume that there is stable or perpetually growing (or decreasing) income without considering the effects of the property market cycle on leasing contracts. The paper therefore focuses on the application of a valuation method for income producing properties which have a value that is affected by the upturns and downturns of property market cycles. Continuing from the previous works in this area (d¡¦Amato, 2003, d¡¦Amato, 2013; d¡¦Amato, 2015) the income approach method here is applied to the office market in four areas of London. In applying this valuation method, property valuation and time series analysis are integrated. The work provides a general introduction on cyclical capitalization as another family of valuation methodologies based on the income approach and then an application of cyclical capitalization to areas of London which highlight their strength and weakness.

scholarly journals ANALISA DAMPAK REVALUASI ASET TETAP BERDASARKAN PERATURAN MENTERI KEUANGAN NO.191/PMK.010/2015 TAHUN 2015 DALAM PERHITUNGAN BEBAN PAJAK PENGHASILAN (Studi Kasus Pada Pt. XYZ di Mojokerto)

2017 ◽  
Vol 2 (01) ◽  
Author(s):  
Muhammad Amar Syukroni ◽  
Hwihanus Hwihanus
Keyword(s):  
Income Tax ◽  
Research Method ◽  
Financial Statements ◽  
Corporate Tax ◽  
Industrial Services ◽  
Operating Income ◽  
Fixed Assets ◽  
The Impact ◽  
A Company

ABSTRACTThis research discusses the implementation of revaluation of fixed assets by taking a case study at PT. XYZ in 2015. PT. XYZ is a company engaged in industrial services for a variety of special works of metals and metal goods. PT. XYZ conducts revaluation of fixed assets for taxation purposes. Tax regulations which are the basis for the revaluation of fixed assets at PT. XYZ is PMK 191 / PMK.010 / 2015, PMK 233 / PMK.03 / 2015, and PMK 29 / PMK.03 / 2016. The research method used is descriptive qualitative with the aim to determine the application of PMK 191 / PMK.010 / 2015 to the implementation of revaluation of fixed assets at PT. XYZ and the impact on the financial statements. The results of this study are the revaluation of fixed assets by PT. XYZ is in accordance with applicable tax regulations. Impact arising on the financial statements of PT. XYZ is an increase in the balance of fixed assets, equity, tax debt, and a decrease in the ratio of debt to equity. Tax implications that arise are PT. XYZ must pay taxes on revaluation of Rp 251,006,279. Depreciation expenses which increase due to increasing value of fixed assets are a deduction from operating income in the calculation of corporate tax expenses. However, it should also be considered that revaluation creates new costs, including appraisal services fees and Final Income Tax debt. Keywords: revaluation of fixed assets, taxes, PMK 191 / PMK.010 / 2015, financial statements

scholarly journals CAPITAL STRUCTURE ANALYSIS TO OPTIMIZE THE PROFITABILITY OF MSMES (CASE STUDY ON MSMES HIKMAH IN SIDOARJO, EAST JAVA, INDONESIA)

2019 ◽  
Vol 1 (2) ◽  
pp. 241-250
Author(s):  
Danur Ramadhani ◽  
Agus Sukoco ◽  
Joko Suyono
Keyword(s):  
Capital Structure ◽  
Cost Of Capital ◽  
Weighted Average ◽  
Financial Statements ◽  
Business Owners ◽  
Optimal Capital Structure ◽  
Descriptive Research ◽  
The Cost ◽  
The Capital Structure

This study aims to analyze the capital structure used to optimize profitability in MSME embroidery shoes. This study uses descriptive research with a qualitative approach. The analytical method is used Weighted Average Cost Of Capital (WACC). The techniques of data collection in this research used interview, observation, documentation and triangulation methods. The data that used are financial transaction records and financial statements issued by the company itself. The results showed that UD. Hikmah used the composition of the capital structure consisting of debt of 20%, 80% own capital with a ROE rate of 170%. Optimization results obtained the optimal capital structure composition on the composition of debt 23% and own capital 77%. By generating a level of profitability that can provide a favorable return for business owners, with the highest calculation of ROE that is equal to 173% and the cost of capital to be borne is Rp.18.238.000 every year.

scholarly journals Analisis Penerapan Akuntansi dan Penggunaan Informasi Akuntansi Pada UMKM

2021 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Fibaroina Nida Fatkhiyah ◽  
Rahman El Junusi ◽  
Nurudin Nurudin ◽  
Faris Shalahuddin Zakiy
Keyword(s):  
Accounting Information ◽  
Financial Statements ◽  
Cash Flows ◽  
Financial Reports ◽  
Descriptive Case Study ◽  
Study Approach ◽  
Operational Information ◽  
Qualitative Descriptive ◽  
Accounting Recognition

The purpose of this study is to determine the extent to which accounting records are applied and the use of accounting information for MSMEs. The research method used is a qualitative descriptive case study approach. The object of this study took 10 MSMEs registered in the financing of Bank BRI Syariah KCP Semarang. Collecting data from this study using interview methods, questionnaires, and documentation. The data obtained were triangulated and analyzed. The results of this study, that the application of accounting records and the use of accounting information on MSMEs registered in the financing of Bank BRI Syariah KCP Semarang has been implemented even though it is still simple in nature. MSMEs have made accounting recognition such as assets, liabilities, equity, income, and cost of goods and expenses. Financial reports are made in the form of cash flows and notes to financial statements. MSMEs have also used accounting information in the form of operational information, management information, and financial information to make decisions.

scholarly journals Calculation and spatial distribution of capitalization rates in the selected segment of reality properties

2016 ◽  
Vol 4 (2) ◽  
Author(s):  
Eva Ardielli ◽  
Jiří Ardielli ◽  
David Slavata
Keyword(s):  
Spatial Distribution ◽  
Real Estate ◽  
Real Estate Market ◽  
Real Property ◽  
The Real ◽  
The Real Estate ◽  
Property Valuation ◽  
The Real Estate Market ◽  
Capitalization Rate ◽  
Apartment Ownership

The process of real property valuation by usage of income approaches is significantly affected by capitalization rate. This article deals with problematic of the capitalization rate determination in the real estate segment of apartments in the Ostrava city. It primarily aims to calculate the level of gross capitalization rate according to different urban localities of Ostrava, for various sizes of apartments, as well depending on the type of apartment ownership. The analysis of the real estate market is an important part of the research. It is focused on the offer of apartments from the perspective of market apartments for sale and also of market apartments for rent. The analyzed and calculated spatial values distributions are consequently processed into cartographic outputs.

International Real Estate Review

2015 ◽  
Vol 18 (1) ◽  
pp. 01-43
Author(s):  
Alain Chaney ◽  
◽  
Martin Hoesli ◽  
Keyword(s):  
Real Estate ◽  
Opportunity Cost ◽  
Cost Of Capital ◽  
Individual Property ◽  
Percentage Points ◽  
Capitalization Rate ◽  
The Individual ◽  
The Cost ◽  
New Evidence ◽  
Appraisal Smoothing

This paper contributes to the debate about capitalization rate determinants by comparing the driving factors of appraisal-based cap rates with those of transaction-based cap rates. By using a rich database of real estate transactions in Switzerland for the period of 1985¡V2010, we identify several property-specific variables that have not been used in prior research and that increase the explained portion of the cap rate variance by as much as 10 percentage points. The results show that compared to investors, appraisers overweight factors that they can easily observe when they appraise a property, at the cost of variables related to growth expectations and the opportunity cost of capital. This has two implications. First, as the easily observable factors hardly change over time, while the latter variables change frequently and significantly, it provides new evidence that may add to the appraisal-smoothing discussion. Second, investors put less emphasis on factors that are diversifiable, which suggests that they favor a portfolio perspective, whereas the focus of the appraisers is more on the individual property level.

The Methodology Suggestion of Capitalization Rates in the Real Estate

2014 ◽  
Vol 1020 ◽  
pp. 769-775
Author(s):  
Zuzana Stefanovová ◽  
Pavel Procházka
Keyword(s):  
Real Estate ◽  
The Real ◽  
The Real Estate ◽  
Property Valuation ◽  
Preliminary Information ◽  
Capitalization Rate

the paper in the field of property valuation represents the preliminary information review of the problems of capitalization rates applied to the property. It contains proposal for a methodology of determination of the capitalization rate including their data and results evaluation. These results will be achieved by using the comparison of sales prices and rental prices for specific categories of properties and specific locations.

scholarly journals Sensitivity Analysis of Machine Learning Models for the Mass Appraisal of Real Estate. Case Study of Residential Units in Nicosia, Cyprus

2019 ◽  
Vol 11 (24) ◽  
pp. 3047 ◽  
Author(s):  
Thomas Dimopoulos ◽  
Nikolaos Bakas
Keyword(s):  
Machine Learning ◽  
Sensitivity Analysis ◽  
Real Estate ◽  
Daily Practice ◽  
Learning Approaches ◽  
Residential Units ◽  
The Cost ◽  
Automated Valuation ◽  
Further Development

A recent study of property valuation literature indicated that the vast majority of researchers and academics in the field of real estate are focusing on Mass Appraisals rather than on the further development of the existing valuation methods. Researchers are using a variety of mathematical models used within the field of Machine Learning, which are applied to real estate valuations with high accuracy. On the other hand, it appears that professional valuers do not use these sophisticated models during daily practice, rather they operate using the traditional five methods. The Department of Lands and Surveys in Cyprus recently published the property values (General Valuation) for taxation purposes which were calculated by applying a hybrid model based on the Cost approach with the use of regression analysis in order to quantify the specific parameters of each property. In this paper, the authors propose a number of algorithms based on Artificial Intelligence and Machine Learning approaches that improve the accuracy of these results significantly. The aim of this work is to investigate the capabilities of such models and how they can be used for the mass appraisal of properties, to highlight the importance of sensitivity analysis in such models and also to increase the transparency so that automated valuation models (AVM) can be used for the day-to-day work of the valuer.

scholarly journals ANALYSIS OF FACTORS AFFECTING THE ALL RISK YIELD: CASE STUDY OF VILNIUS, LITHUANIAN CAPITAL / VEIKSNIŲ, DARANČIŲ ĮTAKĄ KAPITALIZACIJOS NORMAI, ANALIZĖ: VILNIAUS – LIETUVOS SOSTINĖS ATVEJIS

2011 ◽  
Vol 3 (4) ◽  
pp. 99-104
Author(s):  
Tomas Varnelis
Keyword(s):  
Local Market ◽  
Individual Property ◽  
Factors Affecting ◽  
Operating Income ◽  
Correlative Analysis ◽  
Study Results ◽  
Capitalization Rate ◽  
Qualitative And Quantitative Characteristics

Overall capitalization rate is one of the key evaluation elements in operating income approach. Deriving capitalization rates from comparable sales is the preferred method when sufficient data on sales of similar, competitive properties are available. The capitali­zation rates provide evidence of the importance of local market conditions and individual property characteristics. This paper is an empirical study of the capitalization rates for 66 commercial premises sales in down town Vilnius from 2008 III q – 2009 I q. Seeking to derive factors affecting the capitalization rate, regressive-correlative analysis of capitalization rate of various commercial premises located on various streets of downtown Vilnius was carried out. Capitalization rate depends on qualitative and quantitative characteristics of real estate, i. e. purpose, total area of premises, storey they are on and quality of decoration. At the end of study results were summarized. Santrauka Kapitalizacijos norma – vienas iš svarbiausių elementų naudojimo pajamų vertei nustatyti. Kapitalizacijos normos nustatymas pagal lyginamąjį pardavimą taikomas tada, kai turima pakankamai duomenų apie panašų, konkurencingą turtą. Kapitalizacijos norma įrodo vietinės rinkos sąlygų ir individualių turto savybių svarbą. Šis darbas – tai empirinė 66 komercinių patalpų pardavimo Vilniaus centre nuo 2008 m. III ketv. iki 2009 m. I ketv. kapitalizacijos normų analizė. Siekiant nustatyti veiksnius, turinčius įtakos kapitalizacijos normos dydžiui, buvo atlikta įvairių komercinių patalpų, esančių Vilniaus miesto centrinės dalies įvairiose gatvėse, kapitalizacijos normos regresinė ir koreliacinė analizė. Kapitalizacijos norma priklauso nuo kokybinių ir kiekybinių nekilnojamojo turto savybių, t. y. patalpų paskirties, bendrojo patalpų ploto, aukšto, kuriame yra patal­pos, ir apdailos kokybės. Tyrimo pabaigoje aptarta gauta priklausomybė.

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