How to calculate the correct Hotel Rent valuation?

One common method is the profits method, which involves estimating the annual net profit of the property and applying a suitable multiplier to determine its value. Another method is the comparable method, which involves comparing the rental income and other financial details of similar properties in the area to determine the value of the property. The appropriate method and formula for calculating leasehold annual valuation may depend on various factors, such as the type of property, location, market trends, and other relevant considerations. It is recommended to consult with a qualified valuer or real estate professional to determine the most appropriate method and formula for your specific situation. 

There are several formulas that can be used to calculate the leasehold annual valuation, depending on the specific circumstances of the property and the lease agreement. Here are some of the most common formulas:

1. Percentage of Gross Turnover: This formula involves calculating a percentage of the gross turnover (usually between 6% and 10%) and using this figure as the annual rent payable.
2. Rent Per Available Room (RevPAR): This formula involves calculating the average revenue per available room (RevPAR) for the property and using a percentage (usually between 10% and 15%) of this figure as the annual rent payable.
3. Market Rent: This formula involves determining the current market rent for similar properties in the area and using this figure as the annual rent payable. This can be done by conducting a market analysis or using data from rental databases.
4. Net Operating Income (NOI) Multiplier: This formula involves calculating the net operating income (NOI) for the property (gross revenue minus expenses) and using a multiplier (usually between 8 and 12) to determine the annual rent payable.

It is important to note that these formulas are not definitive and may vary depending on the specific circumstances of the property and the lease agreement. It is recommended to consult with a real estate professional or a valuer to determine the most appropriate formula for your situation.