tim sauer
Purchase Price Allocations for Hospitality Assets
Tim Sauer | May 10, 2017
By Tim Sauer I recently attended a presentation where the presenter used a hamburger as an analogy for a cost-segregation study. While most people just see a hamburger, he sees a beef patty, lettuce, tomato, cheese, and a bun. That is to say, he doesn't see a single piece of real estate, but numerous smaller assets that comprise the larger asset. The same can be said of a purchase price allocation (PPA). Introduction to Purchase Price Allocations As the name implies, the objective of a purchase price allocation is to allocate the purchase price of an asset to its component parts. Unlike a cost-segregation study, which allocates cost for...
Cost Segregation Studies for Hospitality Assets
Tim Sauer | August 22, 2016
By Tim Sauer HVS prides itself on being a trusted advisor for hotels owners and investors, and we are constantly looking for opportunities to maximize our clients' cash flows and returns. The following article highlights the basics of cost segregation studies and their potential benefits for our clients. While HVS does not offer this service, we have consulted with cost segregation professionals to maximize its potential benefits in a hospitality context. The Internal Revenue Code (aka the "IRS Code") requires that the cost of commercial property be expensed over its designated recovery period. This annual expense, known as depreciation...
Evaluating Hospitality-Focused Mixed-Use Assets
Tim Sauer | July 25, 2016
HVS's Mixed-use appraisal expert Tim Sauer, MAI lays out some of the considerations for the evaluation of hospitality-focused mixed-use assets By Tim Sauer As Americans continue to "rediscover" urban areas, they not only seek-out these areas as places to live but also as places to stay when they travel. These walkable neighborhoods offer residents and visitors ready access to civic, economic, and social nodes, to which local hotels can provide access for guests. This results in demand from more segments of hotel guests than if the hotel were located near a single demand driver. Additionally, hotels in these areas are often less susc...
