VALUATION OF HOTEL

Waikato Times, Volume 196, Issue 22568, 23 March 1945, Page 2

VALUATION OF HOTEL

COMMITTEE RESERVES DECISION The Ohaupo Hotel was the subject of consideration at a meeting of the South Auckland Land Sales Committee in Hamiltofl yesterday. Considerable discussion developed arouftd the basis on which the valuation of the license and goodwill should rest. Mr D. H. Steen, the valuer for the purchaser, Mr C. T. Beamish, of Auckland, had taken as the basis the rent ruling in 1937, while the Crown valuation was based on a contract which had been concluded in 1940

Mr E. J. Wright, of Auckland, said the vendors, Messrs. H. and G. D. Lynn, would be willing to accept the valuation placed on the license and goodwill by the representatives of the purchaser, who were considered better able to call evidence on that aspect. Mr C. Woods, for the purchaser, said the rent of the hotel at 1940 was not a true basis for valuation as it was affected by war conditions, which at that time were grim. Due to stabilisation regulations the 1940 rent was fixed and was still the ruling rate at 1942, yet considerable improvement in economic conditions had taken place during that time, reacting advantageously on the hotel business.

Answering Mr Woods, Mr Steen said there was a general lift in the consumption of and profit on beer during the period 1940 to 1942. Mr Gorden, the valuer for the Crown, said the Ohaupo Hotel depended for much of its trade on the travelling public and with current restrictions on road travel a fallingoff was to be expected and, therefore, a reduction in the value of the hotel. In 1937, however, there was a great deal of traffic passed through Ohaupo and its effect on the business would tend to give a false value if applied to present-day conditions. The committee reserved its decision.