Please use this identifier to cite or link to this item: http://hdl.handle.net/11718/26047
Title: Brand affiliation and the hotel asset market
Authors: Liu, Peng
Freybote, Julia
Das, Prashant
Keywords: Hotel investors;Information asymmetry;Brand affiliation;Signaling theory;Asset market
Issue Date: 21-Jan-2023
Publisher: ScienceDirect
Citation: Liu, P., Freybote, J., & Das, P. (2023). Brand affiliation and the hotel asset market. International Journal of Hospitality Management, 109, 103428. https://doi.org/10.1016/J.IJHM.2023.103428
Abstract: Brand affiliation represents a signal about the future operating performance of a hotel that reduces information asymmetries between hotel buyers and sellers. However, information asymmetries vary across property-level and locational characteristics of hotels. We hypothesize that hotel brand affiliation as a signal is most valuable to investors when information asymmetries are higher due to hotel characteristics such as a lower-tier hotel class, suburban location, or poorer building condition. Using a sample of 23,323 hotel transactions from 1986 to 2021, we provide evidence that branded hotels with characteristics indicating higher information asymmetries achieve a higher transaction price and shorter marketing time than similar independent hotels. Transaction price and marketing time do not differ between branded and independent hotels with characteristics indicating lower information asymmetries.
URI: http://hdl.handle.net/11718/26047
ISSN: 1873-4693
Appears in Collections:Open Access Journal Articles

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