Abstract

http://ssrn.com/abstract=2096298
 
 

References (20)



 


 



REIT Ownership and Property Performance: Evidence from the Lodging Industry


Shawn D. Howton


Villanova University - Department of Finance

Shelly Howton


Villanova University - School of Business

Johnny Lee


Drexel University

Mi (Meg) Luo


Villanova University

June 1, 2012


Abstract:     
Prior research on the impact of REIT ownership on property performance is very limited and provides inconclusive empirical evidence. Whether REITs add value at the microlevel remains a puzzle. Utilizing a dataset of detailed accounting information for individual hotels across 5 US states, we re-examine the performance of REIT-owned properties. Unlike prior research that focuses on revenue-based performance measures, we examine both the top-line and bottom-line performance of hotel operations. We find that REIT ownership favorably impacts property performance in that REIT-owned hotels have higher profit margins than other lodging properties. The greater cost efficiency is likely attributable to savings in non-distributed operating expenses and fixed charges. We document no outperformance by REITs in revenue growth.

Number of Pages in PDF File: 38

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Date posted: June 29, 2012  

Suggested Citation

Howton, Shawn D. and Howton, Shelly and Lee, Johnny and Luo, Mi (Meg), REIT Ownership and Property Performance: Evidence from the Lodging Industry (June 1, 2012). Available at SSRN: http://ssrn.com/abstract=2096298 or http://dx.doi.org/10.2139/ssrn.2096298

Contact Information

Shawn D. Howton
Villanova University - Department of Finance ( email )
800 Lancaster Avenue
Villanova, PA 19085-1678
United States
Shelly W. Howton
Villanova University - School of Business ( email )
Dept. of Finance
Villanova, PA 19085
United States
610-519-6111 (Phone)
610-519-6881 (Fax)
Johnny Jiung-Yee Lee
Drexel University ( email )
3220 Market St.
Philadelphia, PA 19104
United States
HOME PAGE: http://www.lebow.drexel.edu/academics/departments/accounting/faculty/johnnylee
Mi Luo (Contact Author)
Villanova University ( email )
800 Lancaster Avenue
Villanova, PA 19085
United States
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Download Rank: 215,929
References:  20

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