Show simple item record

dc.contributor.authorCorgel, John B.
dc.contributor.authorGibson, Scott
dc.date.accessioned2020-09-12T21:04:10Z
dc.date.available2020-09-12T21:04:10Z
dc.date.issued2005-11-01
dc.identifier.other6375980
dc.identifier.urihttps://hdl.handle.net/1813/71676
dc.description.abstractA time-series simulation that compares hotel-industry revenue per available room (RevPAR) with London Interbank Offer Rate (LIBOR) indicates that hotel investors would fare more favorably with floating-rate loans than with the commonly used fixed-rate financing. Using data from 1987 through 2004, the study determined that LIBOR and RevPAR changes are strongly correlated, indicating a relationship of RevPAR and floating interest rates. Moreover, a simulation found that hotels using variable-rate mortgages would have been more likely to cover debt service in good times and bad than would hotels financed with fixed-rate loans. The correlation was strongest for midscale, limited-service properties but also operated for budget and resort deals. The relationship of RevPAR with floating rates suggests a reduction in the costs to borrowers and lenders arising from distressed loans.
dc.language.isoen_US
dc.rightsRequired Publisher Statement: © Cornell University. Reprinted with permission. All rights reserved.
dc.subjecthotel financing
dc.subjectfixed-rate and floating-rate mortgages
dc.subjectdebt-service coverage
dc.subjectRevPAR
dc.titleThe Use of Fixed-Rate and Floating-Rate Debt for Hotels
dc.typearticle
dc.description.legacydownloadsCorgel11_Use_fixed_rate_floating_rate_debt.pdf: 1302 downloads, before Aug. 1, 2020.
local.authorAffiliationCorgel, John B.: jc81@cornell.edu Cornell University
local.authorAffiliationGibson, Scott: College of William and Mary


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record

Statistics