For valuation purposes, hospitality properties include:
Hospitality properties are primarily valued using the income approach, which assigns value based on a property’s potential to generate revenue. This is done by estimating the annual revenue that can be generated by the property and applying a capitalization rate or gross income multiplier to arrive at an estimate of the current value for the property.
The types of golf course ownership and operation vary from daily fee to exclusive courses. Golf courses also offer a range of service levels from a simple check-in booth to more extensive facilities, including restaurants, pro shops, concessions, locker rooms and other recreational facilities (such as tennis courts).
To find the current value of a golf course, the assessor estimates the annual revenue that can be generated by the golf course, deducts operating expenses, and then applies a capitalization rate to the net income to arrive at an estimate of current value for the property.
Follow the links below for more information about how golf courses are assessed:
Hotels vary from small budget hotels to very large convention hotels, luxury hotels and resort hotels. Since there is such a wide variety of hotels in Ontario, direct comparison of their overall performance can be misleading. MPAC’s assessors use performance metrics such as revenue per available room, the ratio of room operating costs to room revenues and other departmental and operating expense ratios to compare similar hotels.
Follow the links below for information about how hotels are assessed:
The types of properties used for long-term care range from relatively small properties to much larger establishments offering a variety of facilities.
The direct capitalization method is used to value long-term care homes by estimating the annual revenue that can be generated by the long-term care home, deducting annual expenses necessary to support the revenue stream, and then using the direct capitalization method to apply a capitalization rate to the net income to arrive at a current value for the property.
Follow the links below for information about how long-term care homes are assessed:
Like hotels, motel properties vary considerably. They may provide short- or long-term lodging. Motels are usually located with good access to major road networks and situated near highways or on the outskirts of major or small cities/towns. They typically have fewer amenities than hotels and are generally single- or two-storey buildings with connected rooms. Many have open walkways and exterior entrances.
Motel properties are valued using a gross income multiplier (GIM). The gross income and gross income multiplier for each motel varies depending on a number of factors, including the size, design, age, location and quality of the motel.
Follow the links below for information about how motels are assessed:
Retirement home properties range from small-scale facilities with limited amenities to those with luxury accommodations, extensive amenities and a wide range of services. Besides living space, retirement homes may offer voluntary or mandatory meal plans, various levels of care services and scheduled activity or entertainment options for their residents.
The direct capitalization method is used to value retirement homes. This approach estimates the annual revenue that can be generated by a retirement home, deducts annual expenses necessary to support the revenue stream, and then applies a capitalization rate to arrive at a current value for the property.
Follow the links below for information about how retirement homes are assessed:
Retirement Home Methodology Guide (coming soon)