Stakeholders perceptions of the DCF method in hotel evaluations

C.S. Verginis, J.S. Taylor

    Research output: Contribution to journalArticle

    2 Citations (Scopus)

    Abstract

    The main stakeholder of any valuation is the commissioning party and the outcome of the valuation process will determine for the commissioning party the value of the asset. The second key stakeholder is the valuer. Often, however, there is third stakeholder group, the lending institution. Lending institutions often provide financing to the buyer and the financing decision is often based on the hotel's valuation. Based on a questionnaire survey of hotel valuation stakeholders this study reports the findings as to the perceived suitability of the discounted cash flow (DCF) valuations in respect of hotel property. The findings reported here suggest that the majority of respondents supported the view that the DCF method was the most suitable method in relation to hotel valuations. However, there are indications that the recommended practice of the need for using supporting valuation approaches might not be widely observed or understood. In addition, there was a view among a significant minority of respondents that the DCF method was only applicable for those properties operating at the higher market levels.
    LanguageEnglish
    Pages358-376
    Number of pages18
    JournalProperty Management
    Volume22
    DOIs
    Publication statusPublished - 2004

    Fingerprint

    valuation
    stakeholder
    questionnaire survey
    evaluation
    method
    Discounted cash flow
    Hotels
    Stakeholders
    Evaluation
    market

    Keywords

    • cash flow
    • hotels
    • stakeholder analysis
    • hospitality industry

    Cite this

    Verginis, C.S. ; Taylor, J.S. / Stakeholders perceptions of the DCF method in hotel evaluations. In: Property Management. 2004 ; Vol. 22. pp. 358-376.
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    Stakeholders perceptions of the DCF method in hotel evaluations. / Verginis, C.S.; Taylor, J.S.

    In: Property Management, Vol. 22, 2004, p. 358-376.

    Research output: Contribution to journalArticle

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