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DOI: 10.1177/0010880406289070 The Role of Brand Affiliation in Hotel Market ValueSchool of Hospitality Management at The Pennsylvania State University, jwo3{at}psu.edu
School of Hospitality Management at The Pennsylvania State University, quxiao{at}psu.edu The notion that a hotels brand contributes significantly to the propertys market value is supported by an analysis of nearly eleven hundred hotel transactions over the past fifteen years. The analysis found that brands added value beyond the usual contributors to a propertys value, such as net operating income and revenue per available room. The effects of branding were most noticeable in midmarket and upscale hotels. Based on per-room sales statistics, certain brands added significantly more value to their franchisees properties than others.
Key Words: hotel valuation brand management
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