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The purpose of this paper is to fill an existing gap in the field. A transaction-based hotel price index for Europe is constructed to provide a true measure for hotel real estate performance. The index will enable investors enhance investment decisions in many ways: to assess individual property performance; to make an objective decision about where to invest and in which property type; to assess the relative performance of hotel assets to all other sectors and consequently reach optimal funds allocation decisions. This will allow investors to time their acquisitions/disposals according to the hotel property cycle.

Data include 495 hotel property transactions in Europe during the period between 2004 and 2013. Transaction prices and property characteristics were collected from a variety sources published by hotel agents and consultants, property magazines, newspapers, tourist board, individual property and hotel association registers and web sites. Data include property name, sale price, size, time of sale, location, buyers and sellers. A hedonic pricing model is developed where the transaction price is regressed on the different characteristics. The index is calculated by taking the anti-logs of regression coefficients of the year index.

This paper claims that the hotel property price index (HPPI) portrays a more realistic picture of what happened to hotel property prices in 2008 showing a single digit negative growth vs the hotel valuation index which reports a double digit negative growth rate in European hotel prices during the same year. The real impact of recession showed on hotel property prices in 2009. HPPI shows a crash in hotel property prices by -23.7 per cent in 2009. The year 2011 was marked by more sales transacted through administrators and a looming double-dip recession. Unlike appraisal-based indices, HPPI does not suffer from sticky valuation issues and is not desensitise from distressed properties. Therefore, it was more volatile to distressed situations throughout the period between 2011 and 2013.

Results of this study should be considered with caution. There are limitations associated with transaction data including incompleteness or inaccuracies regarding price data, financing information for each deal, property tenure, and property characteristics.

This work has successfully developed an HPPI for hotel property in Europe. This paper paves the way for transaction-based indices that are more volatile than existing appraisal-based indices. This represents a significant development in tracking price movements of hotel properties in Europe. The index has potential to support research and forecasting of the hotel property cycles.

This paper fulfils an identified need to track hotel property prices and timing the hotel property cycle.

The purpose of this paper is to demonstrate how fixed‐share prices, as a structural flaw in private equity funds targeted to small‐unit investors, economically disadvantages those investors in favor of sponsors.

The theoretical model incorporates fixed share prices with continuous investment opportunity and evaluates the wealth transfer from long‐term investors to marketing affiliates and soliciting dealers in the form of fees paid on the sale of shares to follow‐on investors.

This result holds in the presence of high‐payout dividend policy that attempts to compensate for wealth transfer.

Should share prices be marked‐to‐market using real estate appraisals or another method, the unlisted REIT and related offerings, such as tenant‐in‐common funds, will be profitable for sponsors without economically disadvantaging long‐term investors.

The findings from this research are useful to fund sponsors who design real estate investment products for small‐unit investors. These products may retain the advantageous characteristics of existing products while eliminating the disadvantageous features.

This is the first academic research on private equity capital raised from small‐unit investors.

The impact of recent corporate scandals has been serious and far‐reaching. The popular news coverage has been unequalled by any other business issue. The result is that the investment community has lost its trust in corporate governance and financial reporting systems that less than two years ago were the envy of the world. Shareholders are insisting on changes that include enhancements to corporate governance, adherence to ethical standards and strict accountability. In response, the government, the investment community and the public in general have focused greater scrutiny on the corporate financial reporting function.

The purpose of this paper is to examine corporate strategic effects on hotel unit performance. Taking a hotel owner's perspective, the relationship between four types of the owner's corporate level strategies and the hotel property financial performance are examined.

This study is built on a secondary data set provided by Smith Travel Research. A total of 2,012 hotels across the USA were analyzed for the period between 2003‐2005.

The findings support the existence of corporate effects in the US lodging industry. It is revealed that a hotel owner's corporate strategies do influence hotel property level financial performance. Specifically, a hotel owner's expertise in implementing superior strategies regarding segment, brand, operator, and location (i.e. state) are critical to hotel unit financial performance.

The main limitations of this study include the limited number of years with available data, lack of knowledge on the names of hotel owners, brands and operators, and the performance measures focusing only operating but not value/return measures.

This research shows that a hotel owner can have significant influence on the operating performance of its hotel properties by implementing strategies regarding its properties' locations, segments, brand affiliations and operators. Specifically, brand affiliation has shown a consistently larger impact on both revenue and profit than other corporate strategies, and consequently should receive particular attention from the owner to carefully assess the brand's potential contribution before engaging in a franchise agreement.

This research expands the strategy research in the hospitality field by linking two key strategy constructs – corporate effects and corporate strategy – together and by revealing their collective influence on hotel performance.

This study aims to examine previously identified hotel automated valuation models (AVMs) using a more extensive and updated sample of hotel sale transaction data, introduce economic conditions as a new determinant for hotel market value and test the moderating role of economic conditions on the relationship between the previously identified indicators and market value, operationalized as sale transaction price.

This study performs simple and multiple regression analyses to examine the proposed relationships. The sample period is from 2000 to 2012, because the economy prior to 2000 is likely to have been a less-relevant economic environment for the contemporary business world.

As hypothesized, there is an insignificant main effect of economic conditions on hotel sale prices. A moderating role of economic conditions on the relationship between average daily rate (and net operating income) and market value was found, while no moderating effect was found for occupancy rate and hotel size. Results also find certain support for AVMs previously presented in the literature, as described herein.

This study attempts to make contributions to the existing lodging and real estate literature by investigating a main effect of economic conditions on hotel sale prices and a moderating role of economic conditions on the relationship between various hotel performance indicators and hotel sale prices. In addition, this study operationalizes a relatively extensive (large base sample size of 2,441 hotel sale transactions) and recent (since 2000) database compared to previous studies.

We empirically investigate the hypothesis that the less transparent (more difficult to value) the target’s assets are the more likely it is that the acquiring firm can obtain higher short- and long-term returns. We analyze a sample of 1,538 friendly acquisitions partitioned in two separate dimensions: acquisitions of public versus private firms, and acquisitions of a firm’s assets versus acquisitions of a firm’s assets and its management. Using a sample of (nondiversifying) real estate transactions with a public REIT as the acquirer, we find that acquisitions of public firms have insignificant short-term abnormal returns. Acquisitions of private targets have positive and significant short-term abnormal returns. The acquirer’s abnormal returns are higher in both cases when the transactions involve acquisition of the target firm’s management. We find parallel results when analyzing the acquirer’s Q over the merger year and the three following years. Our conclusions are robust to the type of financing (cash, stock, or a combination) used in the acquisition.

This paper aims to find out whether lagging problems exist within Hong Kong's office values.

A State Space Model with the Kalman filter is deployed in detecting the extent of lagging errors in Hong Kong's office price indices, proffered by the ratings and valuation department (RVD).

The findings suggest that about one year of lagging errors exists in RVD's office price indices compared with the stock market property indices. Also, the finding suggests that the Kalman filter provides a more efficient form of estimates for real estate values and returns.

While most studies investigating lagging problems of appraisal‐based returns concentrate on the US real estate market, studies in this regard for Asian countries (or cities) are few and far between. Hong Kong, in particular, is worth studying, considering its established role as a financial centre in South East Asia. This paper also provides some insights for further studies on the prediction of future real estate values, in particular those with fewer transactions.

This study aims to investigate the determinants of credit spreads in hotel loans securitized into commercial mortgage-backed securities (CMBS) between 2010 and 2015.

The sample represents 1,579 US hotel fixed interest rate whole loans with an aggregate mortgage value of $26.6bn at loan origination. The relationship between credit spreads and property, loan and market characteristic is examined via multiple regression analysis. Additionally, the method of 2-stage least squares is used to control for endogeneity bias and identify the effect of the loan-to-value (LTV) ratio on credit spreads.

The multiple regression models explain 80 per cent of the variation in credit spreads and show a significant association of credit spreads with hotel and loan characteristics and market conditions. The findings indicate the debt coverage ratio to be the most important predictor of credit spreads followed by the loan maturity term, implied capitalization rate, LTV and yield curve. The results show the debt yield premium to be a stronger predictor of credit spreads than the debt yield ratio. The spread between the debt yield ratio and mortgage interest rate could be used in future research as an instrumental variable to identify the effect of the LTV on credit spreads.

This study is limited to the CMBS market and the period after the financial crisis. Additional limitations include sample selection bias, exclusion of multi-property loans and variable interest rate loans.

Interest rate increases in an expanding economy would likely increase the cost of borrowing for hotel owners leading to higher debt service payments and lower profitability. If an increase in interest rates is offset by a decline in credit spreads, hotel owners will still benefit from the ensuing stability in borrowing interest rates. The evidence also suggests that CMBS lenders favor select service and extended stay hotels. Owners and operators of these efficient and profitable hotels will likely obtain loans with lower credit spreads given their lower risk of default.

The current study provides evidence on the effects of loan and property characteristics in the pricing of loan risk and serves to inform CMBS market participants about the factors that drive credit spreads in hotel mortgage loans.

The purpose of this paper is to test the relationships between a hotel’s design quality and the property’s business performance.

Hotel guests’ assessments of the design quality of hotels that they recently visited are tested using the design quality indicator (DQI). Business performance is measured using indexed values for each property’s occupancy, average daily rate (ADR) and revenue per available room (RevPAR). The data are analyzed using exploratory factor analysis and a variation of a hedonic pricing model.

Factor analysis reduced the DQI instrument to 19 measurement items. Factors that measure navigability and signage positively impact occupancy index. Factors that measure flexible space usage negatively impact the RevPAR and ADR indices. Factors that reflect aesthetic constructs, including Urban & Social Integration and Character & Form, positively impact the RevPAR and ADR indices.

The study examines a nationwide sample of guests from two full-service brands of a single multi-brand hotel company. The study provides a parsimonious, validated design measurement instrument and a revised hedonic pricing analysis.

Hoteliers can use this technique to assist with resource allocation decisions. Aesthetic elements, including the building’s Urban & Social Integration with its surroundings and its Character & Form, lead to higher ADR and RevPAR performance. Managers should ensure a coherent layout and good signage program to drive occupancy.

This study offers a technique to measure design quality and a new method of performing a hedonic pricing analysis.

Asserts that the domestic fast food industry is undergoing a transition from growth to maturity. As a result, companies are fending off a flattening sales curve by looking abroad, searching out new target markets, crowding the market with more units. One form of assistance involves the development of mathematical models capable of determining “best” new locations. Using results from a recent survey of franchise owners in the fast food industry, reactions to methods by which franchisees are compensated for encroachment by the franchisor in the context of mathematical location modelling are discussed. In general, franchisees expressed displeasure with the manner by which location models are applied to franchise systems to date.