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  1. The Journal of Real Estate Finance and Economics
  2. The Journal of Real Estate Finance and Economics : Volume 34
  3. The Journal of Real Estate Finance and Economics : Volume 34, Issue 2, February 2007
  4. Technological Change as Reflected in Hotel Property Prices
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The Journal of Real Estate Finance and Economics : Volume 54
The Journal of Real Estate Finance and Economics : Volume 53
The Journal of Real Estate Finance and Economics : Volume 52
The Journal of Real Estate Finance and Economics : Volume 51
The Journal of Real Estate Finance and Economics : Volume 50
The Journal of Real Estate Finance and Economics : Volume 49
The Journal of Real Estate Finance and Economics : Volume 48
The Journal of Real Estate Finance and Economics : Volume 47
The Journal of Real Estate Finance and Economics : Volume 46
The Journal of Real Estate Finance and Economics : Volume 45
The Journal of Real Estate Finance and Economics : Volume 44
The Journal of Real Estate Finance and Economics : Volume 43
The Journal of Real Estate Finance and Economics : Volume 42
The Journal of Real Estate Finance and Economics : Volume 41
The Journal of Real Estate Finance and Economics : Volume 40
The Journal of Real Estate Finance and Economics : Volume 39
The Journal of Real Estate Finance and Economics : Volume 38
The Journal of Real Estate Finance and Economics : Volume 37
The Journal of Real Estate Finance and Economics : Volume 36
The Journal of Real Estate Finance and Economics : Volume 35
The Journal of Real Estate Finance and Economics : Volume 34
The Journal of Real Estate Finance and Economics : Volume 34, Issue 4, May 2007
The Journal of Real Estate Finance and Economics : Volume 34, Issue 3, April 2007
The Journal of Real Estate Finance and Economics : Volume 34, Issue 2, February 2007
Sorting, Franchising and Real Estate Brokerage Firms
Have Equity REITs Experienced Periodically Collapsing Bubbles?
Do Tighter Restrictions on Density Retard Development?
Equilibrium Correlations of Asset Price and Return
Technological Change as Reflected in Hotel Property Prices
The Journal of Real Estate Finance and Economics : Volume 34, Issue 1, January 2007
The Journal of Real Estate Finance and Economics : Volume 33
The Journal of Real Estate Finance and Economics : Volume 32
The Journal of Real Estate Finance and Economics : Volume 31
The Journal of Real Estate Finance and Economics : Volume 30
The Journal of Real Estate Finance and Economics : Volume 29
The Journal of Real Estate Finance and Economics : Volume 28
The Journal of Real Estate Finance and Economics : Volume 27
The Journal of Real Estate Finance and Economics : Volume 26
The Journal of Real Estate Finance and Economics : Volume 25
The Journal of Real Estate Finance and Economics : Volume 24
The Journal of Real Estate Finance and Economics : Volume 23
The Journal of Real Estate Finance and Economics : Volume 22
The Journal of Real Estate Finance and Economics : Volume 21
The Journal of Real Estate Finance and Economics : Volume 20
The Journal of Real Estate Finance and Economics : Volume 19
The Journal of Real Estate Finance and Economics : Volume 18
The Journal of Real Estate Finance and Economics : Volume 17
The Journal of Real Estate Finance and Economics : Volume 16
The Journal of Real Estate Finance and Economics : Volume 15
The Journal of Real Estate Finance and Economics : Volume 14

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Technological Change as Reflected in Hotel Property Prices

Content Provider Springer Nature Link
Author Corgel, John B.
Copyright Year 2007
Abstract This paper investigates the effects of age on the sale prices of hotel real estate. Value erosion of commercial property due to the passage of time may be offset by renovation, although substantial follow-on investment usually occurs several years following construction. Obsolescence produces value losses during the post-construction period prior to new investment that result from technological change (Colwell & Ramsland, Journal of Real Estate Finance and Economics, 8(1), 47–63, 2003). A hedonic model is specified to allow age to measure the effects of obsolescence in hotel prices. Although the long-run obsolescence rate for hotel properties of 1.93%/year aligns closely with the rate estimated elsewhere for retail properties, the path of obsolescence through time shows some marked departures. Contrary to the theory and the empirical results from the retail real estate market, hotel prices do not reveal much more obsolescence in the years immediately following construction than later. Also, the age and sale price relation turns positive nearing the third decade of the lives of hotels indicating a vintage effect. Thus, a V-shaped obsolescence function emerges that either may be explained by a fixed-cost renovation expenditure function or a vintage effect produced by the demand for surviving assets. A series of tests of hotel brand-specific obsolescence rates reveals considerable variation in these rates among seasoned properties, perhaps an indication of a convex renovation expenditure function and sequential follow-on investment.
Starting Page 257
Ending Page 279
Page Count 23
File Format PDF
ISSN 08955638
Journal The Journal of Real Estate Finance and Economics
Volume Number 34
Issue Number 2
e-ISSN 1573045X
Language English
Publisher Kluwer Academic Publishers-Plenum Publishers
Publisher Date 2007-03-06
Publisher Place New York
Access Restriction One Nation One Subscription (ONOS)
Subject Keyword Property prices Hotel real estate Economic depreciation Finance /Banking Regional Science
Content Type Text
Resource Type Article
Subject Finance Urban Studies Accounting Economics and Econometrics
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