As hotels and resorts are considered high-risk, high-reward investments, they can be among the most challenging to properly appraise and value.

These businesses are a combination of real estate businesses and operating business that have economic sensitivity and high operating leverage. As such, expert valuation is essential in these important and high-stakes investment strategies.

Proper valuation requires both valuation fundamentals and competitive trends.

But do you need more than one valuation?

Because the hotel industry features such diverse categories as limited-service, select-service and full-service, understanding where your property fits in the competitive environment is crucial. Beyond that, many important factors rest on a proper valuation of your property.

Similar to the logic of getting a second opinion, are multiple appraisals worth it?

If you’re in the market to buy, sell, renovate or involve your property in any sort of business transaction in the near future, more than one hotel appraisal could be a wise investment if you’re looking to get the best rates for everything from loans to insurance to taxes to other fees associated with the hospitality industry.

People, namely appraisers, are human. Mistakes can be made and opinions about absolute value can vary between person to person, making the option of getting more than one valuation of your property a wise business choice.

Finding an appraiser with extensive knowledge of demand and supply segments, market conditions and how potential changes in the competitive supply affect valuations of different hotel property types is crucial and as a business owner, and if you feel your hotel appraisal didn’t include expert handling of the crucial factors that go into appraisals, additional valuations are a good idea.

It’s your business; and your life. If you have any concerns about the results of a recent appraisal, additional expert input in the form of subsequent valuations could be a sound business decision.