For rating purposes, most hotels are valued using a simple table published by the Valuation Office Agency. This evaluates the amount of fair maintainable sales a licensed premises is deemed to generate, as at the 1st April 2003. This is then multiplied by a simple percentage to arrive at your valuation. However the reality is not that simple.

Different trading styles create different takings with an entirely different cost base that offsets them. If you offer Michelin Star quality food then you will naturally incur “Michelin sized” wages and raw food costs! In my opinion, the above VO valuation does not go far enough to take these higher costs into account. At Bisset Moffatt Hill we can present a case to the Valuation Office that can address this anomaly in your favour.

For further information call Roderick Bisset BSc MRICS IRRV.