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Real Estate Market Segmentation: Hotels as Exemplar

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  • Eli Beracha

    (Florida International University)

  • William G. Hardin

    (Florida International University)

  • Hilla Maaria Skiba

    (Colorado State University)

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.

Suggested Citation

  • Eli Beracha & William G. Hardin & Hilla Maaria Skiba, 2018. "Real Estate Market Segmentation: Hotels as Exemplar," The Journal of Real Estate Finance and Economics, Springer, vol. 56(2), pages 252-273, February.
    • Handle: RePEc:kap:jrefec:v:56:y:2018:i:2:d:10.1007_s11146-017-9598-z
    DOI: 10.1007/s11146-017-9598-z
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    References listed on IDEAS

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    Cited by:

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    2. Dragana Cvijanović & Stanimira Milcheva & Alex Minne, 2022. "Preferences of Institutional Investors in Commercial Real Estate," The Journal of Real Estate Finance and Economics, Springer, vol. 65(2), pages 321-359, August.

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