Our services
Valuation
Avison Young’s specialist hotel valuation team has unparalleled market and operational knowledge of the hotel, serviced apartment and hostel markets in the UK and Europe.
The team prepares valuations of hotels and similar accommodation related businesses for a variety of purposes including loan security, company accounts and expert witness. The core valuation team benefits from having a strong regional platform with the result that our local market knowledge is second to none.
In addition, the valuation team works in close conjunction with the wider Avison Young hotel and retail teams to ensure that we are market facing and fully reflect current market conditions. We also co-operate with and, where appropriate, work jointly with our consultancy colleagues to provide a one stop service and as such are well versed in undertaking rigorous financial modelling as part of our valuation service. We are in regular contact with owners and investors to ensure our valuations reflect the latest evidence and market sentiment.
Our expertise within the sector is reflected in our work as panel valuers for the major UK clearing banks and lending institutions. We are likewise retained by various funds and investment houses and over the last 18 months, we have undertaken an extensive number of confidential hotel valuations, ranging from development sites to branded limited service hotels in regional locations to upper scale central London ‘trophy’ assets and various portfolios in the UK & Europe. We therefore believe we have the breadth of experience, skill set and resources to assist with your valuation needs.
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Capital Markets
Our team has unrivalled market knowledge and expertise which means we are able to guide the disposal process through to completion of sale.
We advise on the best time and method to sell your asset to maximise disposal proceeds.
Avison Young’s Hotel Capital Market’s team has an established profile in the hotel agency and investment market, built upon longstanding relationships with a broad range of investment and development clients. These include domestic and international clients, corporate and independent owners, purchasers, investors and lenders.
Our client’s appreciate the level of commitment and craft which we apply to each assignment and are drawn by our reputation as driven, dedicated and discreet.
It’s an approach which is setting industry standards, putting us at the forefront of client-focused property services.
Our team advises on all types of hotel property, from five star resorts to limited service hotels, serviced apartments and development opportunities.
Our advice is bolstered by the strong relationships we have with hotel owners, investors and all the major UK and global hotel groups.
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Building & Cost Consultancy
We provide market leading building and cost consultancy advice to hotel fund managers, investors, developers and owner/operators.
Services include:
• Technical surveys for acquisition and sale • Development appraisals for refurbishments and new schemes • Fund monitoring during construction • Contract administration and Employer’s Agent services • Cost planning advice • Reinstatement cost assessments for insurance valuation purposes • Dilapidations advice
We identify the technical issues that may impact investment value or operation, both now and in the future. We look at all parts of a hotel, including the building structure, envelope, engineering services, finishes, FF&E and external areas. We also undertake environmental assessments covering site development history, geology and hydrology, contamination and remediation, and flood risk.
We have one of the largest building and cost consultancy teams in the UK with over 120 surveyors and project managers in 9 offices. We also regularly provide advice in mainland Europe using a network of trusted local resources and affiliated companies.
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Brand & Operator Selection
Avison Young have extensive experience of completing brand and operator selections on behalf of a range of clients including owners, developers and investors. Our team can manage the whole process on your behalf, recommending parties and negotiating terms to deliver the best results for you.
Brand and Operator Search and Selection: Avison Young work closely with our clients to understand their requirements, establishing appropriate selection criteria and potential operators that will add the most value to their property. We undertake transparent, phased selection processes designed to create competition and produce a mix of suitable bids.
Contract Negotiation: Avison Young work with our clients and their lawyers to navigate the contract stage, negotiating the best possible terms and ensuring clarity and understanding of the process.
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Business rates
We operate the largest team of rating surveyors in the UK. During the 2010 revaluation we saved our clients £2.2 bn in business rates and settled appeals at an average of 17% reduction.
This success in based upon working beyond conventional appeal work; identifying opportunities through initiatives in technical and valuation areas to deliver savings.
The hotel sector has been significantly affected by the 2017 revaluation. National average increases are around 20%. However there is no consistency across the sector with wide variations by region and hotel operation. An example is hotels with high food and beverage, leisure and conference revenues. They should experience less dramatic increases, and in many cases falls in value, to reflect the costs eroding margins. In reality this has not occurred and values in many cases are too high and need to be challenged.
Our hotel team comprises 8 Directors, based across the UK. Our approach analyses the operation, identifies trading patterns and cost profiles each business. This achieves the lowest valuation basis for your business rates assessment.
Our rating technical expertise, relationships, and experience ensures that we identify and maximise the opportunities for business rates mitigation.
Potential savings can be realised during any capital expenditure programmes, increasing competition (new hotel openings), extensions to existing assets and redevelopments.
We work with management companies, owners and operators to put in place a comprehensive mitigation strategy to minimise your business rate liability across individual assets, or portfolios. We advise over 500 hotels and advise in all market segments from 5* and country house hotels to budget operations.
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Planning, development and regeneration
We have a dedicated team of experienced chartered town planners who have experience of delivering hotels of different brands with varying challenges.
We provide planning advice to inform site acquisitions as well as coordinating and negotiating planning applications to optimise the development potential of a site. In addition, we also provide planning guidance and services relating to the construction phase of the scheme, including optimisation work and discharge of planning conditions.
As part of this work, we have good experience of liaising with local authorities to outline the planning benefits of hotel developments including job creation and increased spending capacity for the local area in order to maximise the likelihood of obtaining support from both local residents and businesses, local authority officers and members.
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Project management
Project management is provided through our specialist team comprising over 80 professionals, firmly established at the forefront of hospitality consultancy delivering luxury high profile, mid market and limited service hotel properties.
We project manage new build and refurbishment projects from large scale developments to small scale repairs from concept to practical completion. We manage team selection, design and procurement including contractor selection, programme and budget, and construction works. We initiate development negotiations between owners, developers and operators.
Establishing our clients’ needs, we manage the various stakeholder and authority approvals needed for major developments. We will prepare a business plan, select the consultants with the best credentials to deliver the project and develop detailed construction cash flow projections. We ensure every obligation is met without compromising design, procurement and construction. We administer all construction contracts either as the Employer’s Agent or Contract Administrator in line with the form of contract.
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