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CERTIFICATION OF APPRAISAL Each person signing below certifies to the best of their personal knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. 4. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. The engagement for this assignment was not contingent upon developing or reporting predetermined results. 6. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. 8. Adam Zimmerman has made a personal inspection of the property that is the subject of this report. 9. No one has provided significant real property appraisal assistance to the person(s) signing this report. 10. We have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP. 11. The appraiser(s) has not provided any appraisal related services at the subject property during the previously 36 months. 12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 13. As of the date of this report, Adam Zimmerman has completed the standards and ethics requirements for candidates of designation of the Appraisal Institute. 14. The appraisal assignment was not based on a requested minimum value, a specific valuation, or the approval of a loan. HILCO REAL ESTATE APPRAISAL, LLC Adam Zimmerman Vice President MS Certified General Appraiser #TG-3679 AERIAL PHOTO EXECUTIVE SUMMARY Location: The site is located at 7276 Casino Strip Resort Blvd. in Robinson, Tunica County County, MSA 38664. Property Description: The subject property is considered a limited service hotel, operating under the Days Inn brand. The property offers 66 guestrooms and was built in 1994. The subject site is comprised of one, 1.50-acre parcel. Assessor’s Parcel Number(s): 3104180000000100 Interest Appraised: Fee Simple, Going Concern Date of Value(s): January 23, 2018 Date of Inspection: January 29, 2018 Ownership: Jasveer S Brar Highest and Best Use Opinion If Vacant: Future Hotel or Commercial development As Improved: Current use as a hotel Site & Improvements Zoning: None, Tunica County Land Area: 1.50 acres – Assessor’s Parcel Map Number of Stories: 2 Year Built: 1994 Type of Construction: Masonry: 2 story hotel Gross Building Area: 35,720 SF Number of Rooms: 66 rooms Amenities: Breakfast room Parking: 84 spaces EXECUTIVE SUMMARY EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL CONDITIONS The value conclusion is subject to the general assumptions and limiting conditions and certifications. In addition, the following extraordinary assumptions and hypothetical conditions, if any, are summarized below, which might affect the assignment results. Any changes from these assumptions may affect market value and we reserve the right to revise our analysis. Use of these extraordinary assumptions may have affected the assignment results. Extraordinary Assumptions The square footages of the building area and other information such as parking count were obtained from the Harris County Records and assumed accurate. We reserve the right to amend our value conclusion if these assumptions are later proven incorrect. It is our understanding that the subject is currently in violation of its franchise agreement and has been removed from the Choice Hotel's web site. We also understand that the subject needs a PIP (Property Improvement Plan) to remove it from non-performing status. We do not know the PIP amount, but estimate it could exceed $500,000, given the subject's below brand standards. We recommend a review of any PIP information provided by Choice Hotels. We were not provided signicant financials. We estimated the subject's ADR and Occupancy by using market based data such as an STR Trend report. We did present an Income Capitalization Analysis (ERRM) as a general valuation tool, but projecting ADR, Occupancy, Rev Par and operating expenses as well as selecting discount rates and cap rates without knowing any current or historical operating income and expenses, any required capital expenditures, or understanding the franchise agreement is highly speculative. We assume the subject is underperforming based on its market share, but we are uncertain as to the amount of capital needed (without understanding financials, condition and spending requirements) to stabilize the hotel. We were unable to complete a reliable penetration analysis. If full recent financials become available, we reserve the right to modify our analysis. We assume the property is and will continue to be managed by a competent management group, typically provided for similar hotels. We estimated (by allocation) the value of the FF&E. We do not know the current condition of the FF&E (Case and soft goods) and have estimated depreciation based on similar aged hotel valuations we have completed. Hypothetical Conditions None TABLE OF CONTENTS INDTRODUCTION ................................................................................................................. 1 REGIONAL ANALYSIS .......................................................................................................... 5 NEIGHBORHOOD ANALYSIS ............................................................................................... 8 SITE DESCRIPTION ........................................................................................................... 14 IMPROVEMENTS DESCRIPTION ...................................................................................... 16 REAL ESTATE TAXES ........................................................................................................ 21 ZONING ............................................................................................................................... 21 HOTEL MARKET ANALYSIS ............................................................................................... 22 HIGHEST AND BEST USE .................................................................................................. 31 VALUATION PROCESS ...................................................................................................... 33 INCOME CAPITALIZATION APPROACH............................................................................ 36 SALES COMPARISON APPROACH ................................................................................... 40 RECONCILIATION AND FINAL VALUE OPINION .............................................................. 46 ASSUMPTIONS AND LIMITING CONDITIONS .................................................................. 49 ADDENDA ITEMS INTRODUCTION INDTRODUCTION Identification of Subject Property Property Description: The subject property is a limited-service Days Inn hotel that opened in 1994 as a Knights Inn and was converted to a Days Inn in 2008. The property features 66 rooms. The hotel offers complimentary hot breakfast. Situated on a 1.50 acre site, the property is located in the Tunica Resort Hotel Market. Address: 7276 Casino Strip Resort Blvd., Robinson, Tunica County County, MSA, 38664 Assessor’s Parcel No.: 3104180000000100 Description of Property Interest Appraised Interest Appraised: Fee Simple, Going Concern Interest Property Ownership and Three Years Sales History Current Ownership: The subject is currently owned by Jasveer S Brar Management/Franchise The subject is franchised under the Days Inn brand. We were not Agreements: provided a copy of the franchise agreement. The subject may be in violation of the agreement. Sale History: There have been no other transactions that we are aware of in the last three years. In addition, to the best of our knowledge, the property is not currently on the market for sale. Intended Use and Users of the Appraisal This appraisal is to be used by the Client, Three River Planning & Development District, for mortgage lending purposes. The intended user(s) is Three River Planning & Development District. All others reading or relying on this appraisal report are considered unintended users of this appraisal. The appraisal cannot be used for any other reason including appealing tax assessments, litigation, settling an estate, etc. Should anyone other than the client read or rely on this report, no fiduciary obligation is owed by the appraisers to that party. Any additional work will be billed at an hourly rate, for expert witness testimony, preparation for testimony, and any other work deemed necessary. Hilco Real Estate Appraisal, LLC Page 1 INTRODUCTION Dates of Inspection and Valuation The value conclusion

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