The owners of Westerwood Hotel and Resort near Cumbernauld has cut the property valuation by more than 25% to £16.5m. According to The Herald the company have written down its valuation by £6 million following a second successive year of losses.Latest accounts for Westerwood Hotel Limited show the valuation of the land and buildings at the Cumbernauld venue was reduced to £16.5m at the end of the financial year to January 3 from £22m at the start of the period.
The company said the adjustment followed an independent valuation of its freehold properties by Christie & Co surveyors, completed in July. Westerwood Hotel has 148 bedrooms and an 18-hole championship golf course.
The company made a pre-tax loss of £3.2m in the year to January 3, compared with a loss of £6.2m in the preceding year and turnover increased by 2.3% annually, to £5.9m.
The business of revaluation, and knock on impacts, is one that we may seek some expert comment in the New Year, so if you know anyone who would be willing to give us an overview of the Scottish Hotel market place please let us know. We did find an interesting PDF (if you understand Discounted Cash Flows and how to balance "Distressed Values") which may shed some light if you're a bit worried about your own property value. Read "The Art and Science of Hotel Valuation in an Economic Downturn"
Read the Herald Article