Over the past twelve months in particular,
the trendiness of the confidentiality agreement has come to the
fore, by a range of vendors and purchasers in all price range
hotels.
In some cases to the point where hotel brokers whom are
appointed to market the property and / or business are often
excluded from being provided with actual financial information
required to successfully sell their clients hotel.
Often the agents, with valuation backgrounds can provide insight
to purchasers as to what are appropriate, acceptable and
sustainable add backs or adjustments from taxation based trading
accounts for the purposes of determining a sustainable nett
profit.
It is understandable that is some cases vendors are concerned as
to “keeping a cap” on the amount of information that is
available to a wide range of parties, however the inclusion of
actual trading statements are considered to be an extremely
important part of any sales memorandum document, especially when
read in conjunction with proof trades purchases and gaming duty
tax payments, while in the case of hotels which are located on a
larger parcel of land or have a development approval comparable
sales of similar types of apartments, bulky goods or comparable
uses are essential in determining real market value.
Beyond this confidentiality agreements often restrict the amount
of information that can also be released to the bound parties
solicitor, accountant or other advisors which can cause ill
feeling in the property transaction and often slows down to a
snails pace the rate of completion.
Bligh Williams
