Résumé

The aim of this paper is to increase the level of transparency in the European hotel investment industry by developing a transaction-based price index. The hedonic regression method is used to analyze a sample of 1334 hotel transactions across 26 European countries between 2007-2020. This international, multi-currency setting poses several challenges to the reliable estimation of year-over-year changes in hotel transaction price levels. To ensure a constant-quality interpretation of the yearly index results despite time-varying sample characteristics, 14 control variables are used to capture a hotel’s location, building quality, size and operational attributes. The resulting transaction price index reveals a 30% drop in price levels during the 2009 Global Financial crisis and an 11% drop in 2020, the year of the Covid-19 pandemic.

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