Journal du tourisme et de l'hôtellerie
Libre accès

Abstrait

Hotel REITs: Market Risks, Book Value, Market Capitalization and Time in Market

Leonard Jackson

This study applied the Fama-French three-factor model to examine the relationship between market risks, book value, market capitalization and time in market for hotel REITs. Findings suggest that hotel REITs that were significantly correlated with all three factors had the highest number of years on the market and highest mean market capitalization. Conversely, those that were not significantly correlated with the three factors had shorter time frames in the market and had the lowest mean market capitalization. Findings also indicated that the higher the market capitalizations, and the longer they existed in the market, the more risk exposure they faced. This could explain the trend of hotel REITs to change their ownership structure and or convert their business format after a few years in the market.