An Efficiency Analysis of the Hotel Industry Across U.S. States: A Data Envelopment Analysis
Background About twelve months ago the American Hotel & Lodging Association (AH & LA) released a comprehensive report which examined the economic impact of the U.S. hotel industry¹ in 2015. According to the report, "Economic Impact of the U.S. Hotel Industry"...
The Efficiency Differences Between Franchisee-Owned and Franchisor-Owned Full-Service Restaurants Across U.S. States
The Restaurant Industry Franchising plays an important role in the U.S. Restaurant Industry. According to the 2012 U.S. Economic Census, franchise restaurants numbered almost 151,000 or about one third of all full¹ and limited-service² restaurants in the U.S. ...
Top Real Estate Schools Ranked by Test Scores, Admission & Graduation Rates and Earnings of Alumni
Our recent post on the "Top Hospitality Schools" generated a significant amount of interest from readers in the U.S. and overseas. A number of readers contacted us seeking a similar table for colleges and universities with real estate programs. With so many...
Top Hospitality Schools Ranked by Test Scores, Admission & Graduation Rates and Earnings of Alumni
Midway through the school year, many high school students and their parents are thinking about their next educational steps. With so many postsecondary options to consider, it’s important that all prospective students have the information they need to make the best...
Rational Hotel Investors & Mean Reversion
Behavioral finance may play an increasingly important role for astute hotel investment decision-makers in the future. Using insights from psychology to understand how human behavior influences investment decisions, behavioral finance may help us understand the...
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...