Hospitality Experience
Expert Opinion on Land Value Dispute
A hotel developer in Country A purchased resort land in Country B. Three years later, government of Country B informed land owner that the deed was issued in error and purchaser really owned another parcel away from the beach. The land purchaser asked to reverse the transaction but Country B claimed the land had no value as it would not have been feasible to develop a resort in such a remote location.
Project Scope
Our team was engaged to provide an expert opinion in a land value dispute involving a hotel developer from Country A and the government of Country B. The case stemmed from the developer’s purchase of prime resort land, which was later deemed erroneously issued. Instead, the purchaser was informed that their ownership pertained to a different, remote parcel away from the beach, significantly affecting its value and development feasibility.
Our engagement focused on conducting a thorough valuation and feasibility analysis for both the originally purchased beachfront parcel and the reassigned remote parcel. This involved assessing each parcel’s characteristics, market value, and potential for resort development.
Key tasks included:
1. Valuation of the Beachfront Parcel: Using comparable transactions, market data, and tourism demand projections, we assessed the value of the original beachfront parcel. We demonstrated its high potential for a profitable resort due to its location, accessibility, and alignment with regional tourism trends.
2. Assessment of the Remote Parcel: We analysed the alternative parcel’s attributes, including access, infrastructure availability, and proximity to tourism demand drivers. Our findings confirmed that development of a resort on the remote parcel would not be commercially viable due to logistical challenges, lack of guest appeal, and diminished market demand.
3. Impact Analysis: We evaluated the financial and strategic implications of the reassignment for the developer, including lost potential revenue, additional costs, and reputational harm.
Our expert report provided critical evidence supporting the client’s claim to reverse the transaction or receive fair compensation. The analysis demonstrated the discrepancy in value and feasibility between the two parcels, strengthening the client’s position in negotiations. This case underscores our expertise in land valuation, feasibility studies, and providing impartial expert opinions in complex disputes.
