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Performance Comparison of Lodging REITs, Hotel C-Corporations and Resorts and Casinos

Author

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  • Woo Gon Kim

    (Dedman School of Hospitality, College of Business, Florida State University, 288 Champions Way, UCB 4116, Tallahassee, FL 32306, USA and International Scholar from Kyung Hee University, 1 Hoegi-dong, Dongdaemun-gu, Seoul 130-701, Republic of Korea)

  • Leonard A. Jackson

    (Kemmons Wilson School, Fogelman College of Business and Economics, University of Memphis, TN 38152, USA)

  • Jun Zhong

    (School of Hotel and Restaurant Administration, Oklahoma State University, 210 HESW, Stillwater, Oklahoma 74078, USA)

Abstract

The purpose of this study is to examine the performance of lodging real estate investment trusts (REITs), hotel C-corporations and resorts and casinos as compared to the overall market, and to compare the relative performance of lodging REITs, lodging C-corporations and resorts and casinos during 1995–2005. Excess returns on three portfolios are regressed against the excess returns on the value-weighted Center for Research in Security Prices (CRSP) portfolio. Lodging REITs provide the highest returns between the two different types of investment portfolios (resorts and casinos and C-corporations), as well as the market benchmark (the overall market portfolio). As an investment vehicle, lodging REITs command respectable returns with relatively low volatility in comparison with stock investments. The excess returns of lodging REITs were not found to be significantly different from zero during the three subperiods of 1995–2005: growth, recession and recovery. Investors who are interested in increasing their share of real estate investments may find lodging REITs a relatively attractive investment vehicle that could be added to their portfolios.

Suggested Citation

  • Woo Gon Kim & Leonard A. Jackson & Jun Zhong, 2011. "Performance Comparison of Lodging REITs, Hotel C-Corporations and Resorts and Casinos," Tourism Economics, , vol. 17(1), pages 91-106, February.
    • Handle: RePEc:sae:toueco:v:17:y:2011:i:1:p:91-106
    DOI: 10.5367/te.2011.0023
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    References listed on IDEAS

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    6. Paul H. Goebel & Kee S. Kim, 1989. "Performance Evaluation of Finite-Life Real Estate Investment Trusts," Journal of Real Estate Research, American Real Estate Society, vol. 4(2), pages 57-70.
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    Cited by:

    1. Apostolos Ampountolas, 2022. "Postcrisis REIT performance using financial ratios: A DEA approach," Tourism Economics, , vol. 28(2), pages 371-393, March.
    2. Soyon Paek & Jin-Young Kim & Sung Gyun Mun & Chulhee Jun, 2021. "In hotel REITs, are institutional investors beneficial for firm value?," Tourism Economics, , vol. 27(4), pages 820-840, June.

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