LICENSED
PREMISES
A
valuation problem arises because different licenses have different
ties to land, buildings and the operator. On the one extreme are
"licensed premises", hotels where the licence applies to
the land, buildings and the operator (publican).
On
the other side of the continuum are botteshops (packaged liquor)
which are personal licences applying to the operator only. Therefore,
the value of a licensed premise such as a hotel relates differently
to the real estate as the licence runs with the land and cannot be
easily removed from it. On the other hand, the operator of a
bottleshop can readily move the licence to another shop in the same
shopping center and elsewhere.
The
continuum of the relationship of the licence to the land is shown
below:
DIAGRAM
PERSONAL
LAND + BUILDINGS
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BOTTLE
SHOP
HOTEL