This article was published in the IAAO's journal in 2005. It can be downloaded from the Research Exchange.
Abstract:
This article focuses on the creation of mass appraisal models to value hotels.
"The mass appraisal technique was developed to enable assessors to accomplish the challenging task of estimating a value for each of the thousands of properties in their jurisdictions. The IAAO defines mass appraisal as: 'The process of valuing a group of properties as of a given date using common data, standardized methods, and statistical testing.' (IAAO 1999) In plain English, mass appraisal is simply the automation of the single-property appraisal approach. Many property types are ideal for the application of mass appraisal, such as single family homes. However, because of the complexities involved in valuing hotels, many assessors find themselves performing single-property appraisals rather than utilizing mass appraisal.
"With reliable data, the assessor can create mass appraisal models that incorporate all of the elements that make up a hotel’s value. Creating income models can be accomplished by utilizing local data and industry sources. Cost models can be created using the Marshall & Swift cost manuals (annual). Creating sales comparison approach models can be difficult due to the lack of sales; however, it is possible through the use of regression analysis or ranking analysis."