Worth way more than £3m

It’s a Holiday Inn with 150 rooms. Assume an average occupancy rate of 75% and an average daily rate of £100-110. Revenue per available room circa £80. So room revenue c. £4.4m, add on food and entertaining etc and call it £5m. If they’re making 20% that’s £1m a year net operating income. Assume an 8.5% yield and you get an open market value of around £13m.

But if NCFC was the buyer they’d lump a premium on top.

It’s still chickenfeed in the grand scheme of things, I agree.

Posted By: Old Git, Oct 16, 08:01:10