After completing estimates of value using the various units of comparison, the results are reviewed for reliability. The review must consider the strengths and weaknesses of each unit of measure, how they relate to the comparable sales and how similar the sales are with the subject property. The assessor after weighing the strengths and weaknesses of each unit of measure reconciles the results into a single value or range of values.

The Direct Comparison Approach is not considered to be the primary approach when valuing hotels/motels. However, carefully done it can provide support and a check on the value determined by the preferred Income Approach and the Cost Approach.

The advantages and disadvantages of the Direct Comparison Approach are as follows:

Advantages

• Easily understood by the industry.
• Most reliable when subject and comparables are similar in all respects.
• Useful to an investor when making a buy v. build decision.
• Provides a useful quick check on results from the other approaches.

Disadvantages

• Reliability of the approach decreases as the number and size of required adjustments increases.
• Lack of sufficient reliable sales reduces the validity.

In the final analysis, it is not the preferred method of market participants.