Practice Notes
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Approved for Publication 01.03.2005
Public Buildings Committee
Practice Note 19
REVALUATION 2005
VALUATION OF YOUTH HOSTELS AND OUTDOOR CENTRES
1. INTRODUCTION
1.1 This practice note deals with the valuation of the following types of properties together with any other subjects of similar character and use.
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Hostels such as those operated by the Scottish Youth Hostels Association;
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Backpacker hostels;
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Bunkhouses;
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Outdoor activity centres.
This practice note should not be used for the valuation of basic shelters such as climbing bothies. Such properties should be valued by reference to Miscellaneous Properties Committee Practice Note 25 (Valuation of Holiday Huts, Huts, Sheds, Bothies etc).
2. BASIS OF VALUATION
2.1 Subjects covered by this practice note are valued on the comparative basis. Values are based on rates per bed space derived from analysis of income and expenditure from properties throughout Scotland.
3. CALCULATION OF BED SPACES
3.1 The unit of valuation is a single bed space. This is a berth for sleeping one person; the standard hostel provision of bunk beds is therefore counted as two bed spaces.
4. VALUATION
4.1 In locations where adequate rental information is available, valuations should be arrived at by reference to local evidence.
4.2 In the absence of suitable rental evidence, appropriate rates per bed space should be selected from the table in Appendix 1. Where certified accounts are available, a check valuation may be carried out based on 10% of gross drawings.
4.3 Certain hostels, especially those in city centre locations, may provide additional facilities such as licensed bars. In such cases, appropriate additions should be made.
4.4 Outdoor centres normally provide accommodation similar in character to hostels with activities taking place away from the subjects. Where there are additional facilities on site, e.g. football pitch, tennis courts etc, additions should be made by reference to the appropriate Miscellaneous Properties Committee Practice Note.
5. END ALLOWANCE
5.1 In cases where accounts are available and a check valuation based on 10% of gross drawings (see 4.2 above) produces rates per bed space which are markedly lower than those shown in Appendix 1, consideration may be given to an appropriate end allowance. The valuer should first ensure, however, that exceptionally low drawings are not merely attributable to the methods of the particular operator.
6. COMPARISON WITH SIMILAR PROPERTIES
6.1 In some cases, it may be appropriate to compare resultant values with the values of subjects having similar physical characteristics such as hotels, guest houses or self catering accommodation. Where values appear to be out of line, it may be necessary to reconsider the appropriate rates per bed space derived from Appendix 1.
APPENDIX 1
VALUATION RATES PER BED SPACE
|
LOCATION |
GOOD/HIGH USE |
NORMAL |
POOR/LOW USE |
|
Major city centre |
£275 |
£200 |
£135 |
|
Main tourist area |
£200 |
£150 |
£100 |
|
Good scenic area |
£165 |
£120 |
£80 |
|
Normal |
£120 |
£90 |
£60 |
|
Rural |
£90 |
£70 |
£45 |
|
Remote |
£70 |
£50 |
£35 |
Rates may be interpolated where appropriate.
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