KIB holds specialized workshop discussing scientific and technical foundations of hotel valuation as part of its Third Real Estate Forum activities

Kuwait International Bank (KIB) held a specialized workshop titled “The Scientific and Technical Foundations of Hotel Valuation”, as part of its Third Real Estate Forum, which was recently held at the Four Seasons Hotel under the theme “Real Estate Valuation and International Standards.” The event brought together a distinguished group of experts and professionals in the fields of valuation and real estate investment.

The workshop was presented by Eng. Ahmad Yousef Al-Yaqoub, Senior Manager – Real Estate Appraisal Department at KIB, and Eng. Hussam Al-Kolak, Real Estate Expert and Digital Lead for Real Estate Management at KIB. It aimed to enhance professional knowledge of hospitality asset valuation methods and to provide a comprehensive understanding of the scientific and technical principles for valuing hotels and resorts. The workshop also highlighted the relationship between international standards and local practices in the real estate market. In addition, it focused on improving the competencies of real estate appraisers and financial institutions in handling hotel projects, thereby contributing to mitigating financing and investment risks in the hospitality sector.

The organization of this specialized workshop on hospitality sector valuation comes in light of the significant government support that Kuwait is currently witnessing to boost the tourism sector, considered one of the promising pillars for diversifying national income sources and stimulating economic activity. In line with this direction, the workshop also aimed to empower real estate and financial professionals to keep pace with the rapid growth of the tourism industry and to enhance their capabilities in valuing hotel and tourism assets in accordance with international standards and global best practices.

On this occasion, Jassim Al-Abdulhadi, General Manager of the Real Estate Department at KIB, emphasized that Kuwait’s real estate market is undergoing a qualitative transformation that calls for the adoption of precise and professional valuation tools. He explained that the Bank is keeping pace with this transition through technical and scientific initiatives designed to elevate local practices to international standards. Al-Abdulhadi also stressed that enhancing the real estate valuation framework strengthens the appeal of the national economy to both local and foreign investors. 

The workshop covered a number of specialized topics, most notably the classification of hotels and resorts and its implications for market value, as well as practical models for hotel valuation in line with international standards. It also included an analysis of key factors affecting value, such as location, brand, occupancy rates, and revenue. In addition, the workshop provided an explanation of the main valuation approaches, including comparison, cost, and income methods, along with practical applications of income capitalization and discounted cash flow (DCF) techniques.

The workshop also reviewed the building and hotel licensing requirements under the Kuwait Municipality regulations, in addition to presenting real-world case studies that enabled participants to practically apply the acquired concepts and develop precise and professional valuation skills.

Designed for professionals with advanced expertise in the field, the workshop witnessed wide participation from real estate appraisers accredited by the Ministry of Commerce and Industry, as well as bank employees specializing in real estate financing and risk management, and managers of real estate portfolios and investments from financial institutions and real estate development companies, as it was designed for professionals with advanced expertise in the field.

It is worth noting that the organization of this workshop comes as part of KIB’s ongoing efforts to develop the real estate sector in Kuwait and to promote the implementation of international valuation standards, thereby contributing to enhancing market efficiency and achieving sustainability in the hospitality and real estate investment sectors.