Hotels

Hotels are a class of property which normally changes hands in the open market as fully operational businesses at prices based primarily on their trading potential. It commonly provides a number of different services within the same building which are often available for the use of both residents of the hotel and non-residents. Accounts for a new hotel may include joining fees for a leisure club and care needs to be taken to discount these to the extent that they would not be receivable on a year-to-year basis. Actual accounts can be presented in different formats. Reference may be made in this respect to the Generally Accepted Accounting Principles (GAAP), the International Accounting Standards (IAS) and the Uniform System of Accounts for the Lodging Industry. Capitalisation of maintainable profit is known as the accounts or profits method of valuation, has been traditionally adopted by hotel valuers.