Real Estate Market Segmentation: Hotels as Exemplar

Posted: 1 Mar 2018

See all articles by Eli Beracha

Eli Beracha

Florida International University

William G. Hardin

Florida International University (FIU) - College of Business Administration

Hilla Skiba

Colorado State University

Date Written: February 20, 2018

Abstract

Market segmentation for hotel properties is quantitatively assessed. Results indicate that the hotel property market is segmented by hotel class. The results are robust to model specification including general economic conditions, property performance measured by market level RevPAR, ADR, standard deviation in ADR, occupancy and standard deviation in occupancy and room count. The results strongly suggest segmented hotel property markets. By showing that hotel properties are not drawn from a single property population, the results advance the notion that aggregate property type pricing models may provide biased estimators.

Keywords: Hotel; Segmentation; Markets; Commercial real estate: Value

Suggested Citation

Beracha, Eli and Hardin, William G. and Skiba, Hilla, Real Estate Market Segmentation: Hotels as Exemplar (February 20, 2018). Journal of Real Estate Finance and Economics, Vol. 56, No. 2, 2018, Available at SSRN: https://ssrn.com/abstract=3126995

Eli Beracha

Florida International University ( email )

University Park
11200 SW 8th Street
Miami, FL 33199
United States

William G. Hardin (Contact Author)

Florida International University (FIU) - College of Business Administration ( email )

Miami, FL 33199
United States

Hilla Skiba

Colorado State University ( email )

Fort Collins, CO 80523
United States
9704912205 (Phone)
9704912205 (Fax)

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