Learn about eviction compensation for hotel residences and the various factors considered in determining the amount, including business value and reinvestment costs.
Eviction compensation for a hotel residence with short-term rentals
The essentials
Hotel residence with short-term rentals
Eviction compensation for the residence’s operating company: €1,113,000 and €63,807.98 for staff dismissal costs.
Commercial lease: Calculating the amount of eviction compensation
Main indemnity
Average sales over the last 3 years at the date of the expert appraisal and capitalization of average profits over the last 3 years.
Expert L. proposed an eviction indemnity of €1,136,000, the amount retained by the first judges, including the following items of loss:
- 1,000,000 € for the value of the business, calculated on the one hand on the basis of average sales over the last three years of operation at the time of the appraisal, and on the other hand on the basis of the capitalization of average profits over the last three years of operation.
Re-employment indemnity: 10% of the value of the goodwill
- 100,000 € in compensation for reinvestment based on 10% of the value of the business.
Disturbance of business: 25% of average profit over last 3 years
- 11,000 € in compensation for commercial disruption, intended to compensate for the loss suffered as a result of the cessation of business, and set at a quarter of the average profit for the last three years.
Cost of moving personal effects
- 2,000 € for removal costs for personal effects only, equipment being compensated in the value of the business.
Staff redundancy costs
63,807.98€ for staff redundancy costs
(0.00 out of 5)