The tales by purchasers and more
so their professional advisors such as accountants regarding the
effect of non-smoking are starting to come to the fore. It is
true that there will be the "haves" and the "have nots" when it
comes to non-smoking and restrictions placed on the hoteliers
from their built improvements and options available to modify
these improvements.
However the concept of a major
decline in values across the board is only wishful thinking as
any venues with the availability of break out areas have the
potential to maintain and even improve there profitability with
it expected for yields to remain at current levels.
The cheap hotels will be the ones
that can't deal with the non-smoking challenges and their
earnings which would have settled at new levels, thus making
them worth market value at the time.
Bligh Williams
The
common sense approach -
Break out
outdoor areas are essential when looking to buy a new venue. It
is our opinion that the yield will remain strong even after
non-smoking.
