Most real property appraisers/valuers are generalists. Their valuation education is focused on properties such as office, industrial, retail and residential which are largely real estate investments. Hotels are quite different because not only do they consist of real property but they also have a business component.
To value a hotel, an appraiser needs to know how a hotel functions as a going business, not just real estate. Terminology such as RevPAR, ADR, GOP, OTA’s, Uniform System of Accounts for Hotels, Competitive Indices, Segmentation, Limited Service, SMERF, and Owner’s Priority are important concepts to understand. An appraiser needs to be able to evaluate a property’s relative competitiveness, its market share, fair share, penetration, and market mix in order to project future occupancy and average rate. Then the appraiser performs a fixed and variable component analysis in order to forecast income and expense. Lastly, the most accurate hotel valuation model utilizes a mortgage-equity approach.
To distinguish between an ordinary appraiser and a hotel appraiser Steve Rushmore, MAI, the creator of the Hotel Valuation Methodology has developed a certification program that focuses on the business aspects of a hotel valuation. Through Steve's online course, "How to Value a Hotel" experienced appraisers looking to specialize in valuing hotels and new valuers starting their careers can become a Certified Hotel Appraiser (CHA) or Certified Hotel Valuer (CHV).
Experienced hotel appraisers can obtain the CHA certification based on their past education and hotel valuation experience. For more information on the criteria for obtaining the CHA certification based on experience- contact Steve Rushmore at email@example.com
Just over 250 hotel appraisers have earned this prestigious certification. This directory contains their names.
Certifications for Demonstrated Skills in Hotel Market Analysis and Valuations