Brand Affiliation and the Hotel Asset Market
Published In
International Journal of Hospitality Management
Document Type
Citation
Publication Date
2-1-2023
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.
Rights
© 2023 Elsevier
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DOI
10.1016/j.ijhm.2023.103428
Persistent Identifier
https://archives.pdx.edu/ds/psu/39566
Citation Details
Wu, L., Liu, P., & Le, D. (2023). The role of public space in constructing experience capital: A longitudinal analysis in the hotel context. Tourism Management, 97, 104735.