AN BINSE LUACHÁLA
VALUATION TRIBUNAL
AN tACHT LUACHÁLA, 1988
VALUATION ACT, 1988

Eamon Hayes t/a Suggard Trading Ltd. APPELLANT
and
Commissioner of Valuation RESPONDENT

RE: Licensed Hotel & Land at Map Reference 15C, Gortboy,
E.D. Newcastle Urban, RD Newcastle, Co. Limerick.

B E F O R E
Con Guiney - Barrister at Law Deputy Chairman
Ann Hargaden - FRICS.FSCS Member
Michael Coghlan - Solicitor Member

JUDGMENT OF THE VALUATION TRIBUNAL
ISSUED ON THE 8TH DAY OF FEBRUARY, 2000

By Notice of Appeal dated the 13th day of January 1999, the appellant appealed against the determination of the Commissioner of Valuation in fixing a rateable valuation of £425 on the above described hereditament.

The Grounds of Appeal as set out in the said Notice of Appeal are that; "it is too high in comparison with an established local hotel "The Devon" Templeglontine R.V. £657".

The appeal proceeded by way of an oral hearing, which took place in Limerick Corporation on the 2nd day of February 2000. Mr. Patrick Conroy, a District Valuer in the Valuation Office appeared on behalf of the Commissioner of Valuation. Mr. Cyril Curtin, a Consultant Valuer appeared on behalf of the appellant. Mr. Eammon Hayes, Manager of the hotel and Mr. Michael Hayes, Director of the appellant company also gave evidence. In accordance with the Rules of the Tribunal, the valuers had prior to the commencement of the hearing exchanged their précis of evidence and submitted the same to this Tribunal. Both parties having taken the oath, adopted their précis as being their evidence in chief. Submissions were also made. From the evidence so tendered the following emerged as being the facts relevant and material to and for the purposes of the appeal.

The Property
The premises, the subject of this appeal comprises a twenty two bedroom roadside Hotel near to the centre of the town of Newcastle West, which is located off the Killarney Road, midway between Rathkeale and Abbeyfeale. The Hotel is in close proximity to the town and is directly adjacent to the main N21. The premises have recently been refurbished and reconstructed which involved demolition of pre-existing sub-standard bedrooms and the replacement of same by twenty two modern en-suite bedrooms with a new reception area and dinning room. The existing bar facilities had been upgraded in 1996 to a modern standard.

Valuation History
Prior to 1997 Revision the premises had been known as the "River Room " and had an RV of £250.
At 1997 revision following refurbishment and reconstruction, the RV was increased to £425. No change was made at first appeal.

Appellant's Case
Mr. Curtin on behalf of the appellant assessed the valuation on the subject premises at £360 based on the accounts from 1995-1998. He said that this devalued at £16.35 per bedroom. He compared the subject with a number of other hotels on the bedroom basis and these comparisons are set out in a table below;-

*This agreed figure replaced the original figure of 70 bedrooms in the appellant's original submission.

Mr. Curtin mentioned that the site was restricted which results in a less than optimum layout for the hotel. He also said that there was no private garden, limited parking and too few rooms to cater for coach tours.

Respondent's Case
Mr. Conroy on behalf of the respondent assessed the valuation on the subject premises at £425 based on the comparative method as follows:
3,042 @ 27.98/m2
He provided the Tribunal with five comparisons as set out in the table below;-

1. Leen's Hotel, Abbeyfeale 739m2 @ £27.98
2. The Devon Inn Hotel, Templeglantine 3,777m2 @ £27.98
3. Woodlands Hotel, Adare. 7,982m2 @ £29.81
4. Rathkeale House, Hotel. 2,414 m2 @ £24.21
5. Kilmurray Lodge Hotel, Limerick 3,446 m2 @ £33.36

Determination
In assessing this appeal, the Tribunal have heard Mr. Curtin and Mr. Conroy in relation to the best basis for assessment. It is noted that a square metre basis has been used by Mr. Conroy. Mr. Curtin, while making reference to the accounts, has put his emphasis on a rate per bedroom assessment.
The Tribunal in this instance prefers the square metre basis as a method for assessment, as this better reflects the different configurations apparent in very similar premises. While noting the comparisons as tendered, it is common case that the Devon Inn is the most relevant comparison. This premises is located near the subject though in a rural location. It is accepted that the turnover of these premises is similar. The Devon Inn, though greater in size, has more bedrooms. This perhaps reflects the difference in emphasis within their particular trades and therefore is the best reason for a square metre basis to be used. It is noted that the subject is a long narrow building in configuration. This restricts its potential for the future. On this basis the Tribunal is disposed to make a marginal reduction.

The Tribunal therefore determines the Rateable Valuation at £411 calculated as follows:

3042 m2 @ £27 = £82,134
x .5% = £410.67
say £411

And the Tribunal so determines.