Hotel Valuation
Marrakech — RICS VPGA 4

Independent RICS Red Book valuations of boutique hotels, riad-hotels, guesthouses and resort assets across Marrakech and its region. 10-year DCF on RevPAR, ADR and occupancy benchmarks, GOP analysis, cap rate and WACC triangulation. English reports for acquisitions, banks, funds and reporting.

What VPGA 4 actually means

Hotels and guesthouses are not valued like a block of apartments. Under the RICS Red Book, operational hotels fall under VPGA 4 — Trade-related property: the value captures the ability of the asset, occupied by a reasonably efficient operator, to generate sustainable profit. Market value is the price at which a reasonably efficient hypothetical operator would transact at the valuation date.

This matters: two physically identical riads with different operators, different OTA strategies, different breakfast offerings, will not trade at the same price. VPGA 4 normalises trading to a reasonably efficient operator — so the valuation is comparable across assets and not distorted by one-off mistakes.

Our valuation methodology

1. Data room review — P&L, occupancy, ADR, payroll, property tax, capex history, booking channel mix.
2. Site visit — room inventory, condition, technical systems, neighbourhood, competition (walked, not just listed).
3. Market benchmarks — Marrakech medina boutique segment ADR and occupancy (STR-style benchmarking + local primary data).
4. Cash flow build — 10-year projection: revenue (RevPAR growth), departmental cost, overheads, FF&E reserve, reaching a stabilised GOP margin.
5. Discount rate & exit yield — WACC built up from Moroccan risk-free + country risk + hotel sector premium. Exit cap set per segment.
6. Cross-check — per-key comparables from recent transactions, and sanity check on implied cap rate on Year 1 NOI.
7. Report — Red Book compliant, signed, delivered in English and/or French as required. Data sheet appended.

Marrakech hotel benchmarks (2026)

Ranges reflect 2026 observed transactions and our internal Marrakech database. Actual cap rates are highly sensitive to operator quality, room count, year-round vs. seasonal trading and FF&E age.

When do you need a hotel valuation?

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