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How Many Lodging Industry Executives Really Know The Odds?

How many executives in the hotel industry really know the odds involved in the outcomes of their important decisions? The hotel industry is filled with dedicated, educated, and intelligent individuals who despite their hard work and experience, have no real idea of...

Get Real About Uncertainty in Your Hotel Market Forecasts

Prediction intervals are the most valuable statistical tools available to hotel investment decision-makers. However, they are not used as frequently as they should be. Lodging analysts, such as PwC, CBRE, and STR traditionally provide forecasts that are point...

Beware of the Hurdle Return!

The decision to accept or reject a hotel for a fund often depends on making a comparison between its estimated IRR and the fund’s hurdle rate. To be accepted, each hotel has to achieve returns in excess of the cut-off rate irrespective of the risk class in which they...