Built originally in Victorian times the hotel was rebranded in 2008 as a 5 star boutique hotel. The hotel was entered into the 2010 rating list with an assessment of £3,885,000 this representing an increase of 56% from the 2005 rateable value. In establishing the assessment, the Valuation Office Agency approach had been to consider the fair maintainable trade as at 1 April 2008 and in doing so they had considered the actual trade at the hotel for the period leading up to this date.
The valuation date of 1 April 2008, which applies to all commercial properties valued for the 2010 Rating List, fell at a time of great economic uncertainty with a global financial crisis and emerging recession within the UK. The Valuation Office Agency believed that this did not impact on hotel rental values until autumn 2008.
Acting on behalf of the hotel operator, we were able to provide evidence that the decline in trade commenced in the latter part of 2007 and accordingly to agree a lower fair maintainable trade with the Valuation Office. This produced a reduced rateable value and after lengthy negotiations a revised assessment of £3,500,000 was finalised, generating savings of approximately £1,138,000 in business rates over the 7 year revaluation period.