Sheraton Hotel Redding At Sundial Bridge - Redding Record ...

Using these known variables, the following intermediary calculations must be
made before applying the simultaneous valuation formula. The fraction of the loan
paid off during the projection period is calculated as follows.
P = ( 0.08102 - 0.0650 ) / ( 0.13626 - 0.0650 ) = 0.224886
The annual debt service is calculated as f x M x V.
(f x M x V)= 0.08102 x 0.65 x V = ( 0.05267 )V
Inserting the known variables into the hotel valuation formula produces the
following.
( 1,065,835 - 0.05267 V ) x 0.8547 +
( 1,519,000 - 0.05267 V ) x 0.73051 +
( 1,475,050 - 0.05267 V ) x 0.62437 +
( 1,730,500 - 0.05267 V ) x 0.53365 +
( 1,784,500 - 0.05267 V ) x 0.45611 +
( 1,841,150 - 0.05267 V ) x 0.38984 +
( 1,898,400 - 0.05267 V ) x 0.3332 +
( 1,958,350 - 0.05267 V ) x 0.28478 +
( 2,020,000 - 0.05267 V ) x 0.2434 +
( 2,083,150 - 0.05267 V ) x 0.20804 +
((( 2,121,662 / 0.090 ) - ( 0.030 x ( 2,121,662 / 0.090 )) -
(( 1 - 0.224886 ) x 0.7 x V)) x 0.208037 )= ( 1 - 0.65 )V
Like terms are combined as follows.
$12,269,201 - 0.350165V = (1 - 0.65)V
$12,269,201 = 0.70016V
V = $12,269,201 / 0.70016
V = $17,523,301
Total Property Value as Indicated by
the Income Capitalization
Approach (Say) = $17,500,000
It is important to note that this analysis does not reflect any capital deductions (if
applicable).
February-2011 Explanation of the Simultaneous Valuation Formula
Sheraton Hotel Redding At Sundial Bridge – Redding, California x