Revisiting the hotel capitalization rate

Das, Prashant (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland)

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.


Keywords:
Article Type:
scientifique
Faculty:
Economie et Services
School:
EHL
Subject(s):
Economie/gestion
Date:
2015
Published in:
International journal of hospitality management
Numeration (vol. no.):
April 2015, vol.46, pp. 151-160
DOI:
ISSN:
0278-4319
Appears in Collection:

Note: The status of this file is: restricted


 Record created 2015-10-13, last modified 2018-12-20

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