Our client, the owner/occupier of a well-known hotel group, appointed Vickery Holman to reduce their business rates outgoings.
The rateable value (RV) of a hotel is typically calculated by analysing annual turnover to establish the level of accommodation receipts achieved per double bedroom unit (DBU) for the hotel type and area. When receipts at the antecedent valuation date (AVD) have been analysed per DBU, a percentage from a predetermined scale is applied to derive an appropriate rateable value.
We found the VOA had recorded too low a DBU total, resulting in an incorrect value per DBU being used to value the property.
We submitted a Check to the VOA confirming the correct DBU number.
The outcome was the amendment of the DBU total in the hotel’s valuation, which in turn resulted in a new value per DBU being used as the basis for the valuation. This resulted in a reduction in rateable value from £265,000 to £259,000 and generated a total saving to our client of £12,700. Savings will continue into the future as the valuation is now based upon the correct factual information.
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