Résumé

Based on empirical analyses of US hotels, this study finds that hotel capitalization rate is a complex com- bination of macroeconomic and asset-class specific variables beyond the cost of capital, capital structure and growth rate. In particular, investors in hotel real estate base their cap rate measures on the perfor- mance of corresponding REITs. Incorporating asset specific trends improves the explanatory power of the capitalization rate model. A significantly persistent cap rate across consecutive-periods experiences an offsetting autoregressive effect in a year. Unusual increases in rents lead to investor scrutiny. Regula- tory environment significantly impacts the capitalization rate after controlling for the overall economic activity in a market.

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