Start Date
26-6-2024 3:15 PM
End Date
26-6-2024 4:15 PM
Description
Within the Municipal Property Assessment Corporation (MPAC), Hospitality Properties include hotels, motels, golf courses, retirement homes, and long-term care facilities (nursing homes). These properties are valued using either the gross income multiplier method or the direct capitalization method of the income approach by way of a pro forma. Individual revenues and expenses and the capitalization rate (or multiplier) are derived based on external analysis and then inputted individually. In 2023, MPAC pioneered a more general “model” based valuation, using mass appraisal techniques. This session will highlight the challenges of leveraging the pro forma structure into mass value creation including stratifying and extrapolating limited data, systematically applying broadly derived parameters to multiple properties, conducting post-valuation reviews, shift analysis, and measuring accuracy and equity – all as efficiently as possible in a limited time frame.
Recommended Citation
Jarjour, Roger and Masciotra, Hayli, "The (R)evolution of hospitality property mass appraisal" (2024). Mass Appraisal Valuation Symposium. 12.
https://researchexchange.iaao.org/mavs/mavs2024/sessions/12
The (R)evolution of hospitality property mass appraisal
Within the Municipal Property Assessment Corporation (MPAC), Hospitality Properties include hotels, motels, golf courses, retirement homes, and long-term care facilities (nursing homes). These properties are valued using either the gross income multiplier method or the direct capitalization method of the income approach by way of a pro forma. Individual revenues and expenses and the capitalization rate (or multiplier) are derived based on external analysis and then inputted individually. In 2023, MPAC pioneered a more general “model” based valuation, using mass appraisal techniques. This session will highlight the challenges of leveraging the pro forma structure into mass value creation including stratifying and extrapolating limited data, systematically applying broadly derived parameters to multiple properties, conducting post-valuation reviews, shift analysis, and measuring accuracy and equity – all as efficiently as possible in a limited time frame.
