A guesthouse is worth its provable cash flow, not its building: rooms x occupancy x average rate, minus honest costs, discounted for risk. Two identical buildings can differ in value by half, purely on what the books can prove.
Illustrative. Documentation is not paperwork; in a sale it is money.
Valuing the building. In Laos the land under it cannot be owned by a foreigner at all, so value concentrates in the operating business plus the lease that lets it continue. A beautiful property with three years left on a non-transferable lease is a countdown, not an asset. Check the lease before falling in love.
The full model in Excel: seasonality, rate assumptions, cost structure, lease scenarios, plus the PowerPoint report that a buyer, seller or bank can work from. Fixed fee after a free scoping call.
On its cash flow: rooms times occupancy times rate, minus real operating costs, discounted for risk. The building matters mainly through the lease or land rights attached to it.
Provable occupancy. Booking histories and bank statements that verify the story can move value more than renovations do.
The method is identical everywhere; the inputs change. Vientiane, Luang Prabang and Vang Vieng carry different seasonality, rates and buyer pools, which enter through the numbers.
Excel model + PPT report, lease scenarios included. Free scoping call.
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