International valuation method

multinational military rank regularityThe objective of this research study is to using the best global rating mode for the e evaluation of hotel properties in Kuala Lumpur, Malaysia.The derriere population is 50 respondents who coming from varied valuation firm in the ara of Kuala Lumpur. Among these respondents, in that respect ar 35 registered nursers and 15 spot consultants atomic number 18 directed by convenience sampling proficiency.70% of the respondents be registered assessrs because their knowledge and acquisition of valuation argon commanded to achieve the goals in this research study. However, on that point atomic number 18 30% of respondents ar retention consultants because they shake polar suck in points from registered prizers. quality consultants always keep abreast with the knowledge of new developments in retention grocery store.The Influence on Hotel Development from Tourism Industry in that location ar 68% of the respondents ca ll back that the hotel assiduity impart grows in parallel of latitude with the trend in touristry manufacturing dapple 32% of the respondents disaccord.The increase of tourism application for the past few years. The future of tourism industry is predicted to grow in elflike trend. With the effort of government in bon ton to encourage the growth of tourism industry, the number of tourism coming to Malaysia bequeath increase and they will be staying for a longer period.In 30% of the respondents who are home consultants, the majority of shoes consultants which contribute 16% of piazza consultants agree with the argument while 14% of them disagree. attribute consultants disagree because the hotel industry is scarce a portion of the property grocery which being boost by tourism industry in Malaysia.The Attraction of Hotel Industry in MalaysiaThe secondary data in chapter 3 evidences that the amount of tourists arrives in Malaysia is likeness to the equivalence amount of income received. Tourism ministry has aimed to gene lay more income by dint of boost tourists stay longer and spend more in Malaysia. The hotels supply is grueling to support the increasing amount of tourists. Thus, this gives a laid-backer investment capability on hotel industry in property commercialize.In the second call into question in questionnaire, thither are 60% of respondents in the opinion that the likely of hotel industry is attracting investors. Property consultants and registered shelterrs consider that investors will undertake the opportunity to name hotel development because the pauperism of hotel properties in Malaysia is high.However, at that place are 40% of respondents disagree with the statement. They accept that the investment potentiality in hotel industry boost by tourism industry is low because the hotel industry is just a small portion in property commercialise. Thus, tourism industry has planned some(prenominal) programs to encourage i nvestors to pay close attention to hotel industry.The Predicted Demand of world(prenominal) evaluation Standard for Hotel Properties in MalaysiaThe third question shows the willingness to apply World Hotel evaluate System is high. World hotel rating jackpot gives standardize rating rate for the hotel properties. Thus, there are 82% of the respondents agree for the adoption of international valuation standard in the valuation of hotel properties is favored by investor in the onward question.The compare between International paygrade manner actings and Malaysia paygrade mannersSales Comparison Approach and Comparison mannerThere are 84% of respondents shown that rough-cut sales similitude greet kitty replaces comparison system.The comparison between these twain methods. The valuation process of these 2 valuation methods are the very(prenominal). The grocery look upon of relegate property persistent by these methods is the adjusted transacted care for from com parison between the put in property and similar same properties.However, the valuation techniques of these twain valuation methods are similar. There are 16% of respondents disagree with the statement because the sales comparison advent is applied on the properties find nigh the boundary area among different countries while comparison method is just applied in Malaysia.Cost Approach and Cost rule98% of the respondents conceptualize that the personify method can be replaces by cost preliminary. They assume that there are no potential buyer in real property will pay more for a property than the cost of buying a similar land and construct a similar build on it.Property consultants are fully concur with the statement because the valuation processes and their valuation techniques of these twain methods is the equal. The grocery store value of publication property is opinionated through summation of the land value and the building cost including any improvement value an d depreciated value.The literature review has shown that these dickens methods are adequate for all font of property and they are the more or less reliable valuation methods for new or near-new property. This is because these valuation methods apply in the valuation of an older property, estimated depreciation on the construction cost for a new building need to be include.Income Approach and Investment mannerThere are 62% of the respondents believe that the investment method can be replaced by income start because these two valuation methods have the same valuation process and similar valuation technique.Chapter Two has reviewed that the valuation technique of investment method is similar to one of the valuation techniques in income approach which is named Gross Income Multiplier Technique. These two valuation techniques are the same. The market value of subject property is assessed by multiply the gross income multiplier with the gross income of the subject property. The gros s income multiplier is derived by divide the transacted market value of similar comparable properties on the gross potential income.In 30% of the respondents who are property consultants, majority of 18% property consultants disagree with the statement. They believe that the differentiated this valuation technique into a unit valuation method such as investment method in Malaysia is split up than the income approach built-up of three valuation techniques because it is utilise for the valuation of office buildings, shop a great deal and retails in obtain complex. These flakes of properties collect rentals from tenants as the main income stream.Income Approach and force out income mannerThere are 66% of the respondents believe that the make headway method can be replaced by income approach because these two valuation methods have the same valuation process and similar valuation technique.Chapter Two has reviewed that the valuation technique of attain method is similar to one of the valuation techniques in income approach which is named Capitalization Rate Technique. These two valuation techniques are the same. The market value of subject property is determined by multiplying the meshwork operate income with capitalization rate. The capitalization rate is derived by divide the transacted market value of similar comparable properties on the gross potential income determined through the compend of recent comparable sales.In the 30% of respondents who are property consultants, majority of 16% of them are disagreed with the statement. They believe that the differentiated this valuation technique into a unit valuation method such as dinero method in Malaysia is better than the income approach built-up of three valuation techniques because it is apply for the valuation of vexation property such as source park, play course, cinema, hotel etc. These casefuls of properties are income-producing properties with not recently transacted.Income Approach and Residual mannerThere are 60% of the respondents believe that the balance method can be replaced by income approach because these two valuation methods have the same valuation process and similar valuation technique.Chapter Two has reviewed that the valuation technique of rest method is similar to one of the valuation techniques in income approach which is named Discounted Cash scarper Technique. These two valuation techniques are the same. The market value of subject property is determined by the capitalized the amount of discounted the prospective net future income with discounted rate. The Discounted Rate is derived by estimating the risk choosed through analyzing the historical data.In the 30% of respondents who are property consultants, majority of 22% of them are disagreed with the statement. They believe that the differentiated this valuation technique into a unit valuation method such as residual method in Malaysia is better than the income approach built-up of three va luation techniques because it is used for the valuation for proposed development. This valuation technique is used to justify the feasibility and viability of the proposed development.Factors that Influence the Selection of rating regularityThere are 92% of respondents agreed with the statement while 8% of respondents disagreed. Majority of respondents believe that the elements stated above will not fall the selection of valuation methods but they are showed in their market value.The epitome direct from interviews show the market value of hotel properties is higher when the hotel managements are doing thoroughly and the hotel rating is high. Chapter Three has determined the hotel managements will square up the profit margins and will check hotel rating. Hotel property with higher rating are hand overs better facilities and service to satisfy customer demand.The analysis result from interviews show the different type of hotel has its own market value but market value for th e hotel property with fully provide hotel accommodations and facilities is higher. Chapter Three has determined the hotel accommodations and facilities according to the types of hotels such as world class facilities is provided in luxury hotels while part of the facilities in mid-range hotels and few of facilities in budget hotels.The Application of International Valuation Methods in the Valuation of Hotel Properties in MalaysiaThere are 74% of respondents supported the lotion of International Valuation Methods in the Valuation of Hotel Properties in Malaysia. They believe that the international valuation methods are suitable for the valuation of hotel property because the trend of hotel industry is internationalized.Chapter Three has determined hotel industry in Malaysia is growing and tourism ministry has encouraged investors enter hotel industry that provides higher investment potential in property market.Chapter Two has reviewed that the analysis results of in comparison of In ternational Valuation Methods and Malaysia Valuation Methods shows they have the same valuation processes and similar valuation techniques.There are 26% of respondents disagreed with the statement. They believe that the hotel properties located in Malaysia have no need of International Valuation Methods for the valuation since Malaysia Valuation Methods are functioning salubrious to determine the market value of hotel properties.The Sequence of Influence Factors that dissemble the grocery store Value of Hotel PropertiesTypes of HotelsThere are 44% of respondents selected the types of hotels as the smaller go factor that affects the market value of hotel properties. Based on their opinions, different types of hotels are located at different location and provided with different facilities that will baffle the market value of subject property.Chapter Three has determined the different types of hotels provide hotel facilities differently according to the types of hotels such as lu xury hotels provided fully equipped world class facilities while part of facilities in mid-range hotels and few of facilities in budget hotels.Besides, Chapter 3 has reviewed the different types of hotels located differently. Luxury hotels are located in popular tourist destinations surrounded by shopping areas, business district and world- famous landmarks. Mid-range hotels are located near to the business and shopping district while Budget hotels are located far from tourism hotspots that required certain travelling distance.Hotel placesThere are 40% of respondents selected hotel ratings as the bigger influence factors that affect the market value of hotel properties. Based on their opinions, hotel properties with higher rating contain higher market value because hotel properties with high rating have higher profit margin.Chapter 3 has determined hotels are rated through star classification system establish on the facilities and serve provided. Hotel properties with a higher rat ing have provided the best accommodations and services that customers are content for their staying.The analysis result from interviews shows the 40% of respondents believe that hotel rating is a system that shows the performance in its services and accommodations provided for customers. Thus, this factor is chosen as the bigger influence in the market value of hotel property because it reflects the type of hotel properties, location and the services and accommodations of that hotel property.Hotel ManagementsThere are 54% of respondents selected hotel managements as the biggest influence factor that affects the market value of hotel properties. They believe that healthy hotel managements have the highest potential to bring the highest satisfaction of customers needs.Chapter Three has determined that hotel managements play an important mapping that bring a track in develop plans to achieve the profit targets through efficient use of human resource and technology. Hotel managements have been computerized in hotel accommodations and services management, administration management, working capital management, and employee benefit programs.Based on the selection by property consultants, there is a shape of V from the smallest influence towards the biggest influence. 8% of property consultants select it as the smallest influence factor. They believe that the effect of this factor is not significant because the market value of hotel properties with exhaustively management that located far from the tourist hotspot are visit than hotel properties with poor management that located near the tourist hotpot.Hotel AccommodationsThere are 50% of respondents selected hotel accommodations as the smallest influence factor that affects the market value of hotel properties. They believe that the accommodations are provided in according to the types of hotel properties.Chapter Three has reviewed the accommodations for hotels are classified into full-service and restrict servic es that are considered by their customers. Hotels with limited-services provide part of facilities and moderate accommodations that they targeted their customers are who willing to have lower room prices while full-services hotels provide respective(a) facilities and higher class accommodations.The analysis result from interviews shows the 50% of respondents believe that different class accommodations are provided by different types of hotels in according to different hotel development plans. This factor is chosen as the smallest influence in the market value of hotel property because it is according to the type of hotel properties, location and hotel management.The Sequence of the Factors that Affect The Valuation of Hotel PropertiesFrom the selection of the smallest influence factors affects the market value of hotel properties, there are 50% of respondents selected hotel accommodations because they believe that the accommodations are provided in according to the types of hotel p roperties.From the selection of the smaller influence factors affects the market value of hotel properties, there are 44% of respondents selected the types of hotels because they believe that different types of hotels are located at different location.From the selection of the bigger influence factors that affect the market value of hotel properties, there are 40% of respondents selected hotel ratings because they believe hotel ratings have reflects the type of hotel properties, location, services and accommodations provided in that hotel property.From the selection of the biggest influence factors that affects the market value of hotel properties, there are 54% of respondents selected hotel managements. They believe that good hotel managements have the highest potential to bring the highest satisfaction of customers needs.Thus, the sequence from the smallest influence factor to the biggest influence factor that affect the market value of hotel properties is hotel accommodations, ty pes of hotels, hotel ratings and hotel managements.The Selection of The trump Valuation Method for The Valuation of Hotel PropertiesThe Condition of Hotel PropertyFully-Built Hotel PropertyThis is a condition where fully-built hotel properties put up with valuation process to determine the market value of those hotel properties to be transacted.There are 66% of respondents who select profit method as the best Malaysia Valuation Method while there are 52% of respondents select income approach as the best International Valuation Method because they believe that these two valuation method have included the value of profit potentiality or service potential. Based on their experience, the transaction of hotel properties mostly are built-operate transfer.There are 34% of respondents who select cost method as the best Malaysia Valuation Method while there are 46% of respondents select cost approach as the best International Valuation Method. The analysis result shows that there are trans actions where the owner would like to disposal his hotel properties. However, this situation is less than built-operate-transfer.Under-Construction Hotel PropertyThis is a condition where under-construction hotel properties bear up under valuation process to determine the market value of those hotel properties to be transacted.There are 60% of respondents who select residual method as the best Malaysia Valuation Method while there are 66% of respondents select income approach as the best International Valuation Method because they believe that these two valuation methods are used because they can justify the future profitability for those under-construction hotel properties.There are 24% of respondents who select cost method as the best Malaysia Valuation Method while there are 34% of respondents select cost approach as the best International Valuation Method. Based on their experience, there are disposal of under-construction hotel properties due to financial problem of that propo sed developer. However, that situation is less. These two valuation methods are mostly used for the purpose of kick upstairs insurance.Proposed Hotel PropertyThis is a condition where proposed hotel developments undergo valuation process to determine the market value of those hotel properties to be transacted.There are 88% of respondents who select residual method as the best Malaysia Valuation Method while there are 94% of respondents select income approach as the best International Valuation Method because they believe that the market value of hotel properties determine by these two valuation method have considered development potential with undergo the determination of feasibility and viability of that proposed development.Chapter Two has reviewed that the valuation technique of residual method is similar to one of the valuation techniques in income approach which is named Discounted Cash Flow Technique. The prospective income generated apply in valuation process are estimated b ased on the principle of highest and best use through analyzing by comparable data.The Purpose of Hotel ValuationLending PurposedChapter Three has determined that valuation of hotel properties for modify purpose is required by the banks and other financial institutions for loan security, mortgages or debentures used for hotel development. The market value of charged property is determined with undergo market study and feasibility study to ascertain the level of demand of that subject property and the viability of that proposed project.The analysis result for the best Malaysia Valuation Method in the valuation of hotel properties on lending purpose, there are 86% of respondents selected residual method.The analysis result for the best international Valuation Method in the valuation of hotel properties, there are 92% of respondents selected income approach.From their opinion, these two valuation methods undergo discounted cash flow technique that the market value of hotel properties has involve development potential after the feasibility and viability of that proposed development is determined.Fire insurance policyChapter Three has determined valuation of hotel properties for fire insurance purpose is unavoidable for fire insurance contract and policy or switch of fire insurance contract and new policy. The market value of subject property that determined in this valuation is the reinstatement cost for a new. It may be valued for a new policy or a renewal for that fire insurance contract.The analysis result for the best Malaysia Valuation Method in the valuation of hotel properties on lending purpose, there are 82% of respondents selected cost method.The analysis result for the best international Valuation Method in the valuation of hotel properties, there are 84% of respondents selected cost approach.From their opinion, these two valuation methods determined the market value of property by the surrogate value through analyzing the cost of the land and buil ding. They are the best valuation method to determine the property value as new.Financial informChapter Three has determined valuation of hotel properties for financial reporting purpose requires companies show their balance sheets of the subject property held under investment or business. The market value of subject property has included the profit potentiality or service potential.The analysis result for the best Malaysia Valuation Method in the valuation of hotel properties on lending purpose, there are 56% of respondents selected profit method.The analysis result for the best international Valuation Method in the valuation of hotel properties, there are 72% of respondents selected income approach.From their opinion, these two valuation methods determined the market value of subject property is determined by multiplying the net operating(a) income with capitalization rate from the analysis from the balance sheets. They are suitable these type of business properties which are not recently transacted such as theme park, golf course, cinema, hotel etc.Sales and PurchaseChapter Three has determined valuation of hotel properties for sale and purchase purpose requires companies show their balance sheets of the subject property held under investment or business. The market value of subject property has included the profit potentiality or service potential.The analysis result for the best Malaysia Valuation Method in the valuation of hotel properties on lending purpose, there are 82% of respondents selected cost method.The analysis result for the best international Valuation Method in the valuation of hotel properties, there are 78% of respondents selected cost approach.From their opinion, these two valuation methods determined the market value of subject property is determined by multiplying the net operating income with capitalization rate from the analysis from the balance sheets. They are suitable these type of business properties which are not recently transa cted such as theme park, golf course, cinema, hotel etc.Submission for Securities CommissionCompulsory AcquisitionRating ValuationThe Business Proposal of Hotel DevelopmentJoint-VentureManagement Contract fellowshipThe Selection of The trounce International Valuation MethodThe Selection of The Best Malaysia Valuation MethodThe Comparison between The Best International Valuation Method and The Best Malaysia Valuation Standard