in estimating the fair market value of the property, the anticipated debt-free net cash flow that could be generated by the property was projected until the year when the net cash flow of the subject property is expected to stabilize. At the end of the projection period, the reversionary value of the property was estimated by capitalizing the projected debt-free net cash flow in the stabilized period.
the estimated cash flow in 2018 for The Centara Hotel Hat Yai, assuming 3% growth rate from 2017 ,was capitalized into an indication of the fair market value using a pre-tax yield of 9%. As a result, the reversionary value is estimated at Baht 2567.6 million in 2017. In addition, the estimated transection costs incurred in the selling process, approximately 4%, were deducted from the reversionary value to arrive at the net sales proceed or Baht 2,464.9 million.