Library

eCommons

 

Do Property Characteristics or Cash Flow Drive Hotel Real Estate Value? The Answer Is Yes

Simple item page
dc.contributor.authorLiu, Crocker H.
dc.contributor.authorCorgel, John B.
dc.date.accessioned2020-09-10T15:26:38Z
dc.date.available2020-09-10T15:26:38Z
dc.date.issued2017-03-09
dc.description.abstractAnalysts typically use two types of methods to value hotels: comparable sales and the present value of income (sometimes calculated as discounted cash flow). This report explores whether one model is superior to the other, and whether combining both models results in more precise hotel valuations. This evaluation addresses the issue of which property characteristics and income calculations are the most effective in explaining variation in the prices of hotels, how the descending influence of hotel property characteristics and income present value components determine the prices of hotels, and whether hedonic and income-based models produce similar estimates of hotel values. The findings show that using an approach based on comparable sales or one based on incomes results in similar value estimates. Beyond that, the analysis finds that combining both models does not result in more precise hotel valuations.
dc.description.legacydownloadsLiu_2017_Do_property_characteristics_REV_1.pdf: 1379 downloads, before Aug. 1, 2020.
dc.identifier.other9825509
dc.identifier.urihttps://hdl.handle.net/1813/70990
dc.language.isoen_US
dc.rightsRequired Publisher Statement: © Cornell University. Reprinted with permission. All rights reserved.
dc.subjectCornell
dc.subjecthotel income
dc.subjectprice variations
dc.subjecthedonic pricing models
dc.subjectincome based model
dc.subjecthotel sales data
dc.titleDo Property Characteristics or Cash Flow Drive Hotel Real Estate Value? The Answer Is Yes
dc.typearticle
local.authorAffiliationLiu, Crocker H.: chl62@cornell.edu Cornell University School of Hotel Administration
local.authorAffiliationCorgel, John B.: jc81@cornell.edu Cornell University School of Hotel Administration

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Liu_2017_Do_property_characteristics_REV_1.pdf
Size:
488.82 KB
Format:
Adobe Portable Document Format
Download

Collections

Center for Hospitality Research Publications