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Appeal No. VA01/1/011
AN BINSE LUACHÁLA Caruso Ltd., t/a Quality Hotel APPELLANT RE: Hotel at Map Reference: 5nc, Townland:
Carrowmoneash, E.D. Oranmore, R.D. Galway County Galway B E F O R E
By Notice of Appeal dated the 18th April, 2001 the appellant
appealed against the determination of the Commissioner of Valuation in
fixing a rateable valuation of €1,587.17 (£1,250) on the above
described hereditament. The appeal proceeded by way of an oral hearing, which took place on the 12th day of October 2001 in the Council Chamber, Galway Corporation, Galway. The Appellant was represented by Mr. Martin O'Donnell B.A., M.I.A.V.I. Partner of Frank O'Donnell & Co., Rating and Property Consultants. The respondent was represented by Mr. Michael Keogh, F.S.C.S. staff valuer in the Valuation Office. Both valuers prepared written summaries of their evidence, which they exchanged with each other and gave to the Tribunal in advance of the hearing. The Property Area Valuation History Appellant's Evidence 1) Rental Method In the case of the Portmarnock Hotel the passing rent dated from the 29th of March 1996 and the size of the hotel is almost identical to the subject property. The Tribunal based their decision on a growth rate of 40% from 1988 to March 1996. This results in a 28.5% reduction in the rent to 1988 levels. Growth rates from 1996 to June 1998 (the date rent was fixed for the subject property) have been significant especially in the hotel sector. However, the hotel sector growth rate is not easily established and therefore I have examined the JLW Property Index, which indicates that general rental levels have increased by 24% for this period. By applying the same rate of growth as the Tribunal did in the Portmarnock case and adding for the two year period 1996 to 1998 it is my opinion that the valuation on the subject property should be calculated as follows: Rent @ June 1998 £350,000.00 N.A.V. @ Nov. 1988 £182,070.00 Say £ 910.00 2) Comparative Method My opinion of valuation is arrived at below by reference to the comparisons provided on Page 6. Description - Hotel In conclusion, we submit that a fair and reasonable rateable
valuation for the property would be £910.00 Mr Michael Keogh gave evidence on behalf of the respondent. He set out his valuation as follows: Rateable Valuation Hotel (including Leisure Centre) 5,818 sq.m. @ £43.056
= £250,499 Mr Keogh submitted three comparisons to the Tribunal, details of which are set out in Appendix 2. He said that the rate applied to the premises by the appellant was less than the rate applied to industrial premises in Oranmore. He said that the passing rent was not an appropriate starting point for valuing the subject premises. He considered the location of the premises to be excellent and believed that the hotel should be assessed in line with the tone established for Galway City as although it was located in the county area it was only one mile from the City boundary. Determination In essence Mr. O'Donnell has sought to marry the subject premises within the tone of the list for valuations throughout Galway County and has submitted that equally the Tribunal should have regard to the rental evidence available. In support of his submission he has cited a determination made by the Tribunal in the case of IEH Hotels Limited and the Commissioner for Valuation VA97/5/028. Mr. O'Donnell has represented in evidence that generally the tone of the list for Galway City is at €68.34 (£53.82) and for the County €41 (£32.29) per square metre He seeks the lower rate to apply. Mr. Keogh on the other hand has contended that rental evidence in this specific instance is not the most compelling basis for assessment. He has contended that the subject premises in reality is located no more than a short length of road from the city boundary. The nature of its trade and its general characteristics are not the same as the comparisons adduced by the appellant. Mr. Keogh maintains therefore that his comparisons and not just the Ibis Hotel are the more relevant even though they are located within the city area of Galway. Mr. Keogh has sought to distinguish between the subject premises and the comparisons adduced by Mr. O'Donnell. He contends that there is no real difference between the subject and other short stay Hotels within the city boundaries and seeks a valuation based upon that premise. He makes the point that a significant reduction was already granted to the Appellant at first appeal. In arriving at its determination the Tribunal is aware that the occupiers rental in this instance is tax driven. While rental evidence is clearly of relevance its value in this instance is diminished by virtue of the foregoing. There is merit in both the above arguments. Clearly it is desirable that the Tribunal maintain a general tone for the list within any given functional area. Nevertheless the subject is located on a national route being the Ring Road running past Galway City and closely adjacent to the City. The subject is therefore competing for custom with other budget hotels located inside the city boundaries. In truth the nature of the subject's business is more comparable to that of the Ibis Hotel as relied upon by Mr. Keogh than that of the Oyster Manor Hotel, the Galway Bay Hotel or the Connemara Coast Hotel as relied upon by Mr. O'Donnell. Accordingly the Tribunal determines a valuation based
upon the sum of €45.72 (£36.00) per square metre and set out
as follows:
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