Hotels and Motels
Last Document Review Date: October 9, 2014
TABLE OF CONTENTS
Introduction ......................................................................................... 3
In Scope ..................................................................................... 3
Out of Scope ............................................................................... 3
Executive Summary .............................................................................. 3
Resources............................................................................................ 3
Market Resources ......................................................................... 3
Hotel Industry Research ................................................................ 3
Compliance Checklist ............................................................................ 4
Hotel and Motel Properties ..................................................................... 6
General ............................................................................................ 6
Practices and Procedures .................................................................... 7
Valuation .......................................................................................... 8
Sales Edits – Considerations for Hotel/Motel Properties........................... 9
Models .............................................................................................. 11
Model Rates .................................................................................... 11
Average Daily Rate (ADR) ................................................................. 11
Revenue per Available Room (RevPAR) ............................................... 12
Furniture, Fixtures and Equipment ..................................................... 12
EX/TX Codes ................................................................................... 12
Income and Expense Statements ....................................................... 12
Permits .......................................................................................... 12
Sales Edits ...................................................................................... 12
Appendix A: Frequently Asked Questions ............................................... 13
Appendix B: Definitions and Actual Use ................................................. 16
Examples of Hotels Contained in the Actual Use 230 Category ............... 16
Examples of Motels Contained in the Actual Use 232 Category .............. 23
Appendix C: Hotel Rating Classification ................................................. 26
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CAA/AAA Diamond ........................................................................... 26
Canada Select Accommodations Rating Program (BC Lodging and
Campgrounds Association) ................................................................ 27
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INTRODUCTION
In Scope
The following properties, identified by actual use, are within
scope:
o 230 – Hotel
o 232 – Motel and Auto Court
Out of Scope
The following are not in scope for this document:
o
o
o
o
056
233
237
238
–
–
–
–
Residential hotel – typically SRO type
Strata hotels and motels
Bed and breakfast with four or more units
Seasonal resort
EXECUTIVE SUMMARY
The purpose of this document is to provide valuation direction
for the uniform assessment of single-title properties that offer
short-term commercial overnight accommodation, including
motels and hotels.
RESOURCES
Market Resources
Pannell Kerr Forster Hotel Trends Reports
Hotel Industry Research
HVS Canadian Lodging News
HVS Weekly Lodging Outlook
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COMPLIANCE CHECKLIST
The following is a list of items that must be completed in
order to be considered compliant with this document:
1. With the exception noted above, hotels and motel properties
will be valued on a capitalized NOI approach using market
data, or where unavailable, market based research, available
from AVS – Market Data.
2. Non-room rental areas will be valued using a market-based
lease income approach.
3. Use a separate model for each significant non-room rental
use.
4. Space/areas used for ancillary services/benefits included in
room rent will not have separate rental rates applied.
5. A building residual will be used to determine improvement
values except for:
a. Air space parcels and designated heritage properties
where land residual will be used.
b. For designated heritage properties.
c. If a cost approach is used.
6. Deductions for furniture, fixtures and equipment (FF&E) will
be made at a fixed percentage of the hotel going-concern
value and will be made in accordance with the Hotel
Directives.
7. Market support must accompany any adjustments to the base
rate or model for market influencing characteristics
(attributes) at the model level. For example, adjustments to
income, expense, vacancy, land, quality, view, etc., that
varies from the base rate or model for the competitive
market set.
8. Surplus or excess land will be valued through one or more
additional land components (see ICI Land).
9. Classification will be Class 06 – business and other, except in
the case of the manager/owner’s suite(s) or if rooms are
rented out on a long-term stay basis and a long-term stay
declaration has been submitted, in which case the property
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classification will be for these components with be Class 1 –
residential.
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HOTEL AND MOTEL PROPERTIES
General
1. Valuation method(s):
a. Capitalized NOI – primary method
b. Cost or DCA methods in rural and remote
(unincorporated) areas only when information to
support an income valuation is not available.
Inability to obtain information in a local market should not be
the deciding factor in selecting the cost or DCA methods.
Market information for competitive properties in similar
communities within the region should first be investigated.
2. Units of measure are MOT room type or HOT/MOT rooms.
3. A market-based lease income approach will be used to value
non-room rental areas considered in excess of that required
for general hotel operations.
4. A building residual approach will be used to determine the
improvement value.
5. Actual use codes and valueBC occupancy descriptions (in this
document) for hotels/motels will be applied.
EXCEPTIONS:
o The cost method will be used for properties for which
the current use is not the HBU.
o The land residual method will be used for value
apportionment in the case of air-space parcels and
designated heritage buildings.
TIP
When valuing a non-room rental use, such as a restaurant area,
use the local model with local lease rates, vacancy and
expenses. Note the incomeDCA ID number for the hotel
(predominant use) and enter this number in the main ValueBC
Property viewer/Commercial Building tab – Predominant Income.
This will result in the valuation using the same CAP rate for the
non-room rental component as is used for the hotel itself and
will prevent an inaccurate, “blended” rate.
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Practices and Procedures
•
Hotel or motel properties with one or more nonhotel/motel components (such as apartment, retail, or
parking, etc.) will be valued through application of a
separate model for each significant non-hotel/motel use
within the property.
1. When completing the mandatory fields in the IncomeDCA
Model viewer/Keypane, keep the following in mind:
o Model Creation: a hotel-motel model should be
designed to encompass the largest number of relatively
similar properties, within the broadest possible
competitive market set. valueBC provides provides
considerable flexibility to account for the diversity of
buildings within a specific model (e.g., income quality,
size or suite mix, OCR adjustments).
▪
▪
The starting point for development of the hotel-motel
models will be occupancy and region.
Separate retail general, office, or other model types
and income records will be applied to non-room
rental hotel-motel areas which generate income as
appropriate.
o Method: select CAP Direct Capitalization
o Model Type: select MOT – Motel (non-flagged), HOTMOT
– Hotel/Motel (flagged or flaggable).
▪
Flagged and non-flagged refer to whether or not the
extablishment is associated with a brand name
{flag} hotel
o Primary Model Use: Motel occupancy: MOTxxxx (1700).
Hotel/Motel: HOTMOTxxxxx (2700-2706).
o Model Description: the model description will
adequately describe the geographic area and physical
description.
▪
Examples
-
Motel-North Fraser Region – Budget
Hotel-Motel – VSS Region – Full Service
o Additional information documenting the model should
be placed in:
▪
IncomeDCA Model viewer/Notes tab/Category: 08 –
General.
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TIP
While it is not strictly necessary to identify the occupancy and
geographic application of the model in the model name, addition
of this information improves clarity when multiple models are
open at the same time.
Valuation
Leased Income (Below the Line)
All properties (hotel and motel) where there are restaurants,
bars, etc., which are clearly able to be delineated, will be
done on a leased income approach. The caveat of an item
being clearly delineated allows the appraiser to exclude
upstairs lounges or meeting rooms that are integrated into
the hotel operation but not areas that could reasonably be
third-party tenanted with its own entrance. For example, if a
restaurant does not have exterior access then it should be
valued above the line.
An example of leased income that is below the line is when
the income associated with the area (restaurant, bar, etc.) is
not integrated into the hotel revenues and is not capitalized
with the hotel net operating income (NOI). Instead, it is
valued below or after the NOI capitalization entry, as a
separate line entry. An example of this would be a restaurant
attached to a hotel that is valued on Income using a
restaurant model (i.e., 1500 square feet x $20/square foot).
Blended CAP Rate
Both the main hotel/motel portion and any “other component”
areas will have one predominant, single CAP rate applied. The
only exception will be in unusual circumstances where the
“other” income component, when capitalized, represents in
excess of 25 percent of the total value Then the appraiser has
the choice to use a different CAP on the office or to effectively
line up in a blended OCR.
Furniture, Fixtures and Equipment
A deduction from the hotel-only value is required. This is not
tied to cost but is a reflection of the “contributory value” of
the FF&E in place – it will necessarily fluctuate with value.
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Ex Tax/Property Class
The overnight accommodation components of hotel/motel
properties must be coded 06/08. This ensures the Tourist
Accommodation (Assessment Relief) Act (TAARA) calculates
only on the overnight accommodation component.
Additionally, a hotel/motel operation split over two or more
roll numbers must have the corresponding TAARA exemption
apportioned between the sites up to the maximum $150,000,
so that the entire operation looked at as a single entity, does
not receive more that the $150,000 maximum exemption.
Sales Edits – Considerations for Hotel/Motel Properties
Franchise Fees
For analysis purposes if franchise fees are reported, then
stabilize and allow as an expense item unless the amount
reported is outside the norm for comparable properties. If not
reported, do not add an allowance for franchise fees as they
may have been included in other departmental expenses.
CAP Rates
When developing CAP rates the intention is to capture the
going-concern value so sales should not be adjusted down for
FF&E or goodwill or any other “intangible”. In many cases the
price should be adjusted up to show the gross sale price –
this is because the value recorded at LTSA will not include
FF&E. valueBC should reflect both the gross sales price and
the interim date. It is acknowledged that this can be difficult
to verify and that sales information is increasingly difficult to
ascertain, especially now when confidentiality agreements are
prevalent.
Share transfers are sometimes difficult to gather information
on. Sales must be analyzed consistently – the aim is to record
our defined “maintainable, stabilized NOI” – however actual
income and expense should form the basis not economic or
Pannell Kerr Forester (PKF) numbers.
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Manager’s Unit
When doing sales edits on motels, ensure the manager’s
suite/unit is included when estimating potential gross income.
Also, include any separate houses or trailers on the property
in an estimate of income. Do not value these ancillary
buildings on cost.
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MODELS
valueBC models have been developed to for the valuation of
each of the above property types.
For actual use 230, the following models are used:
o HOTMOTxxxxx (full service)
o HOTMOTxxxxx (limited service with food and beverage)
o HOTMOTxxxxx (limited service without food and
beverage)
o HOTMOTxxxxx (economy)
o HOTMOTxxxxx (extended stay)
o HOTMOTxxxxx (resort)
For actual use 232, the following model is used:
o MOTxxxx (typical family run – non chain affiliated)
Model Rates
The different regions will need to confirm that the various
model rates are updated on an annual basis with market
derived data. This includes room rates (average daily rate
(ADR)), occupancy percent, CAP rates and the various
expense rate inputs.
TIP
One of the variable expense inputs in the HOTMOT model is the
annual property tax expense. Changes in tax rates from year to
year will result in changes to the expense ratios and a
corresponding change in overall value for properties using this
model type. In order to accurately reflect this variable, new
property tax values should be updated in the IncomeDCA Model
viewer each year based on the most current tax information.
Average Daily Rate (ADR)
The ADR represents the average room rental paid per
occupied hotel room per day during a given period of time. It
is a commonly used metric in the hospitality industry and
when combined with other indicators such as occupancy, it
helps to indicate financial performance and facilitates
comparison with similar properties.
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Revenue per Available Room (RevPAR)
RevPAR is calculated by multiplying a hotel’s ADR by its
occupancy rate, or by dividing the hotel’s total room revenue
by the total number of rooms and number of days in the
period being measured.
Furniture, Fixtures and Equipment
This must be deducted from the total capitalized NOI value.
The IncomeDCA Valuation viewer/Keypane/FF&E field is
reviewed and updated on an annual basis.
EX/TX Codes
The hotel/motel components of the valuation will use ex/tx
code 08 – tourist accommodation. valueBC will automatically
calculate the TAARA exemption (if applicable).
Income and Expense Statements
Requests for financial statements will be mailed annually,
usually in May each year. The request letter and form can be
obtained from the BCA Intranet site. Please maintain a
spreadsheet with contact names, dates sent, dates returned,
etc. In recent years, emailing and faxing have become the
methods of choice for the exchange of this information.
Permits
Servicing should be completed and updated on valueBC by
November each year.
Sales Edits
All sales must be kept up-to-date using the hotel sales form.
The completed sales edit must be attached to valueBC. There
is a central sales registry.
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APPENDIX A: FREQUENTLY ASKED QUESTIONS
Question
Some full service or flagged properties may provide a full
range of food and beverage service for guests to meet their
franchise requirements, maintain their market position,
and/or room pricing. However, these hotel-motels rarely
generate a positive return from non-room rental space. Is it
realistic to apply the lease income approach in these
scenarios?
1. Answer
The appraiser will determine the appropriate economic rate to
apply to non-room rental areas. In some cases, an entry in
the IncomeDCA Valuation viewer/Valuation spreadsheet will
not be created if the conclusion is that the area does not
generate a return to the hotel operation.
Question
Should the owner’s suite be accounted for in the
determination of total units, revenue or vacancy?
2. Answer
Include the owner’s suite (if occupied by an owner/manager)
in the count of total units and determination of gross income.
Question
How is the owner’s suite to be split out during value
apportionment?
3. Answer
Determine the percent of value contributed by the owner’s
suite and key this amount in the IncomeDCA Valuation
viewer/Valuation tab/Distribution spreadsheet (income record
level) as Class 1.
Question
To what extent should a series of room closures for
renovation/upgrade be reflected in the upcoming roll?
4. Answer
Some of the issues that should be given consideration:
1. If self-imposed (i.e., an upgrade not a fire or leak situation)
should it be recognized at all?
2. Could the reno’s take place but the number of
decommissioned rooms be worked on without impacting
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occupancy (e.g., 100 room property, average occupancy 75
percent, 20 rooms closed for renovation so likely little or no
impact other than, possibly, high season)?
3. If valuing at “end value” after reno’s, how to gauge the likely
premium on room rates and/or occupancy?
4. How would the market see the property given the
circumstances?
5. Was it all year or part of a year?
In order to consistently deal with these situations where a
property owner closes rooms in order to renovate, upgrade,
or consolidate rooms/suites the following guidelines should be
considered.
From the Assessment Act :
18 (1) For the purpose of determining the actual value
of property for an assessment roll, the valuation date is
July 1 of the year during which the assessment roll is
completed.
(2) The actual value of property for an assessment roll
is to be determined as if on the valuation date
(a) the property and all other properties were in
the physical condition that they are in on October
31 following the valuation date, and…
This suggests the appraiser should take into account the
physical condition as it existed on October 31 as it is a factor
that would affect value and be a consideration for any
potential purchaser.
A test of HBU should be the starting point. At its most
simplistic – is the continued use of the property as a hotel – if
yes, value as hotel. In some markets given age, location, or
changing economic factors, conversion to another use could
be feasible. In most cases the permits issued and any
development applications/zoning changes will guide you.
Assuming the property is only being partly and temporarily
affected the preferred method is to value the property as fully
operational with the full compliment of rooms and make an
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adjustment to reflect that expenditures will have to be made
to get the property to that condition.
This will involve reviewing financial performance and
occupancy levels for a number of years, asking for cost
schedules and budgets associated with the renovation, and,
ideally, a comprehensive pre-roll discussion to minimize the
risk to completed roll.
In some situations you may have good evidence to help
determine whether the upgrades are going to mean a
significant improvement to the bottom line or whether they
are required just to maintain existing market share. Use your
best available, and defendable, estimates to arrive at fully
operational going-concern value then make allowances as
required. In some cases you may have good evidence of the
rates/occupancy that will apply once the work is complete, in
others perhaps not – refer to the market and determine the
strength of your assumptions.
It is not appropriate to simply reduce the number of rooms
used in the roll calculation as a means of adjusting the value.
If the property was marketed with rooms incomplete/closed a
potential purchaser would still use the full room count to
estimate market value – BCA must reflect the same approach.
Circumstances will vary and there is no set formula but use
common sense and good appraisal practice. Discuss with a
local manager and the hotel coordinator if you have concerns
or questions.
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APPENDIX B: DEFINITIONS AND ACTUAL USE
The following definitions clarify the terms used for hotel/motel
properties contained within the scope of this document:
Hotel Properties (Actual Use 230)
These facilities include the chain/franchised hotels and larger
independent properties that provide a range of hotel products
including the following property types:
o
o
o
o
Full service hotels
Limited service with food and beverage facilities
Limited service without food and beverage facilities
Economy/budget hotel
Valuation of these property types is by way of the more
detailed HOT/MOT valuation models which have been
developed to accommodate the ranges of services offered
(predominant occupancy).
Motel and Auto Court Properties (Actual Use 232)
These facilities include the smaller independent motels which
are typically owner managed and occupied, family run, ma/pa
type properties. Services provided are typically limited with a
reliance on off-site food and beverage services.
Valuation of these property types is by way of the more basic
MOT valuation models which have been developed for more
simplified valuations where detailed income and expense
information is not available.
Examples of Hotels Contained in the Actual Use 230 Category
Product
Defining
Features
Full Service Hotel – including Boutique Hotel
• chain/flag or independent
• typically rated four to five stars (Canada
Select) or three to five diamonds (CAA)
• capacity of 80 to 650 hotel rooms in
varying combinations of room types and
suites with or without kitchenettes.
Hotel rooms may be larger and more
spacious.
• multiple food and beverage venues (i.e.,
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•
•
•
•
Other
Features
licensed restaurant, café, lounge)
24-hour room service or limited room
service from 6:00 am to 10:00 pm
meeting/banquet/ballroom space(s)
from 1,000 to 45,000 square feet
recreational facilities: pool, spa, hot tub,
sauna, exercise equipment
Spacious amenities/public areas
May have:
•
Moderate to full range of guest services:
Concierge
Spa
Valet service
Turndown
Transportation: car service, airport
shuttle service
o In-room safe, bathrobe, higher-end
toiletries, high thread count towels
and linens, better quality and
amount of FF&E
o Exclusive club membership lounge
o
o
o
o
o
Example
Product
Defining
Features
Resorts
• Open year round
• Large land area surrounding the resort
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•
•
•
•
•
Other
Features
(four acre or more)
Typically 50 – 90 units in size with some
exceptions
Typically located in a rural or remote,
attractive setting or destination area
(lakefront, riverfront, oceanfront,
floating on the ocean, ski hill, hot
springs)
Multitude services available such as
restaurant, spa and or spa treatment
range of amenities and facilities such as
a large lounge with fireplace, fitness
center, pool, jacuzzi, hot tub, sauna,
kayaks, bikes, tennis courts, guest
laundry
Onsite restaurant food services
May have:
•
•
•
•
•
•
•
•
•
•
•
•
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packages tailored to specific clientele
(fishing, artists, spa treatments, storm
watchers, honeymoon, weddings)
two night or one week minimum stays
chain affiliation
room and valet service
free wireless internet
Spa treatment facility with massage and
spa services
Separate self contained rental cottages
Access by boat float plane and or car
Meeting rooms for small conferences
and workshops
Camping or RV sites available
May be adjacent to ski hill, golf course
or marina
Airport shuttle service
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Example
Product
Defining
Features
Other
Features
Limited Service With Food and Beverage
Facilities
• food and beverage facilities on-site that
may be operated by the owner or leased
to a third party on a rate per square
foot basis or a percentage of gross
sales.
• capacity of 65 to 115 hotel rooms,
possibly with a small number of suites
• meeting space(s) available
• room service provided between the
typical hours of 7:00 am to 9:00 pm
• Limited amenities/public areas
May have:
•
•
•
•
•
•
•
•
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chain or flag
typical two to three and a half stars
(Canada Select) or two to three
diamond (CAA) rating
laundry facilities
business centre
recreational facilities: pool, hot tub,
sauna
transportation/shuttle service
complimentary continental breakfast,
newspaper, local calls, parking
coin-operated guest laundry facilities
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•
•
safety deposit boxes either in room or
at the front desk
FF&E is of average quality and amount
Example
Product
Defining
Features
Other
Features
Limited Service Without Food and Beverage
Facilities
• limited or no meeting/banquet space
• usually under 100 hotel room capacity
with standard rooms
• no food and beverage facilities
May have:
•
•
•
•
•
•
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chain/flag or be independent
typical two to three and a half stars
(Canada Select) or two diamond (CAA)
rating or not rated
breakfast room to serve Continental
breakfast which may double as a
meeting room
recreational facilities: indoor pool with
or without a waterslide, exercise room,
hot tub
limited amenities/public areas
typically three to five stories high with
elevator service and interior hallways
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•
•
•
small or no meeting space
minimal business centre facilities
laundry facilities
Example
Product
Defining
Features
Extended Stay Hotels
• fully equipped, full size kitchens with
stove, fridge, microwave
• in-suite washer and dryer
• suites with separate bedroom, living
room, dining areas. Suites range in size
from 450 to 1,000 square feet
Other
Features
May have:
•
•
•
•
•
•
•
•
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no flag; typically not rated
small amount of meeting space
food and beverage facilities
valet services
limited concierge service from 7:00 am
to 11:00 pm or 24 hours available
recreational facilities: exercise room,
sauna, pool, hot tub
business centre
Transportation: car service, airport
shuttle service
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Example
Product
Defining
Features
Economy/Budget Hotel
• Typically run by a manager and staff
rather than a family operation
• may have chain/flag
• room capacity of under 100 hotel
rooms. No suites generally but rooms
may have kitchenettes.
• Typically no food and beverage service
beyond providing simple continental
breakfast (coffee, toast, pastries, fruit,
juice and cereal).
• no meeting/banquet space
• limited amenities/public areas
• FF&E is adequate and minimally
furnished
• May or may not have outside entrances
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Other
Features
May have:
•
•
•
typical two to three stars (Canada
Select) rating or one to two diamond
(CAA) rating or not rated
recreational facilities: exercise room,
pool
complimentary continental breakfast
Example
Examples of Motels Contained in the Actual Use 232 Category
Product
Defining
Motel property – no chain or franchise
affiliation
• Typically a run family operation with the
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Features
•
•
•
•
•
•
•
•
•
Other
Features
owner/manager living on-site
Outside entrance to rooms
room capacity of under 100 hotel rooms
Attached living quarters or separate
residence for the manager/owner
may have chain/flag
No suites but rooms may have
kitchenettes
Typically no food or beverage service
on-site but restaurant nearby
Very limited amenities/public areas
No elevator in the building
Low quality and minimal FF&E
May have:
•
•
•
typical one to two stars (Canada Select)
or not rated
an outdoor pool and jacuzzi
guest laundry
Example
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APPENDIX C: HOTEL RATING CLASSIFICATION
CAA/AAA Diamond
CAA/AAA is a not-for-profit organization of some 80 motor
clubs, with over 1,100 branch offices serving more than 45
million members in the United States and Canada. The
association is committed to providing its members peace of
mind and provides a range of services such as tourism
information including accommodation guides.
The guides, or tour books, list CAA/AAA approved
accommodation. The CAA/AAA approval and diamond rating is
assigned when a facility inspection and evaluation are
conducted. The evaluation covers six areas:
o
o
o
o
o
o
Exterior, grounds and public areas
Bathrooms
Housekeeping and maintenance
Room décor, ambiance and amenities
Management
Guest services
CAA/AAA diamond ratings represent a combination of overall
quality, the range of facilities, and the level of services
offered by a property. These widely recognized and trusted
symbols help members choose lodgings that will meet their
needs and expectations.
CAA/AAA diamond rating criteria are broad guidelines to
designate what is typically found at each rating level. The
size, age, and overall appeal of an establishment are
considered, as well as regional architectural style and design.
Diamonds are assigned based on the overall guest impression
rather than on individual criteria.
The following are the diamond rating descriptions:
1 Diamond
2 Diamond
These establishments typically appeal to the
budget-minded traveller. They provide
essential no-frills accommodations. They meet
the basic requirements pertaining to comfort,
cleanliness, and hospitality.
These establishments appeal to the traveller
seeking more than basic accommodation.
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3 Diamond
4 Diamond
5 Diamond
There are modest enhancements to the
overall physical attributes, design elements,
and amenities of the facility typically at a
moderate price.
These establishments appeal to the traveller
with comprehensive needs. Properties are
multifaceted with a distinguished style,
including marked upgrades in the quality of
physical attributes, amenities, and level of
comfort provided.
These establishments are upscale in all areas.
Accommodations are progressively more
refined and stylish. The physical attributes
reflect an obvious enhanced level of quality
throughout. The fundamental hallmarks at
this level include an array of amenities
combined with a high degree of hospitality,
service, and attention to detail.
These establishments reflect the
characteristics of the ultimate in luxury and
sophistication. Accommodations are first
class. The physical attributes are
extraordinary in every manner. The
fundamental hallmarks at this level are to
meticulously serve and exceed all guest
expectations while maintaining an impeccable
standard of excellence. Many personalized
services and amenities enhance an
unmatched level of comfort.
Canada Select Accommodations Rating Program (BC Lodging
and Campgrounds Association)
Canada Select is a voluntary fixed-roof accommodation-rating
program that reflects the needs of the consumer. It provides
the travelling public with a consistent and reliable rating
standard that is nationally compatible and comparable coast
to coast. The program is incorporated and managed nationally
by the Canada Select Accommodation Rating Council.
In BC the program is managed by Accommodations BC, an
organization owned by the British Columbia Lodging and
Campgrounds Association and the British Columbia and Yukon
Hotels' Association.
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Once a property has been categorized, it is evaluated for
physical quality of the property, content of facilities, services
and amenities provided. All properties, regardless of their star
level, must also meet stringent cleanliness and state of repair
guidelines. Each category and star level has distinct criteria
that must be achieved. A star-rating from one to five is
awarded based on the results of the evaluation. A half-star
rating from one and a half to four and a half is also awarded
for superior quality. Each star level reflects specific consumer
expectations.
A one star rating reflects that a property is clean and
comfortable and has met or exceeded nationally accepted
criteria in the area of facilities, services, amenities and quality
of the accommodation.
The following are the Canada Select star rating descriptions:
1 Star
2 Star
3 Star
4 Star
5 Star
Modest accommodations meeting the Canada
Select standards of cleanliness, comfort and
safety.
Moderate accommodations with additional facilities
and some amenities.
Above average accommodations with a greater
range of facilities, guest amenities and services
available.
Exceptional accommodations with an extensive
range of facilities, guest amenities and services.
Luxurious properties. Among the very best in the
country in terms of their outstanding facilities,
guest services, and quality provided.
A half star is awarded where the overall quality of facilities
significantly exceeds the specific category star rating.
The majority of the physical plant in British Columbia is in the
(two and a half) to (four) star ranges. There are only a
handful of five star rated hotel/motel properties in all of
Canada.
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Hotels and Motels
28