Performance Analysis of Lodging REITs in Relation to Market Segments

Kwanglim Seo, Amit Sharma

Research output: Contribution to journalArticle

Abstract

This article examines the financial performance of lodging real estate investment trusts (REITs) in relation to their market focus. Secondary data were collected for from 2004 to 2008 from lodging REITs that were traded on major U.S. stock exchanges. Data envelopment analysis (DEA) was used to assess the efficiencies of market segments to generate financial performance. The results showed that two lodging REITs were consistently efficient during the study period relative to other lodging REITs. In particular, lodging REITs investing and/or operating in one or more relatively similar market segments and those focusing on the upper-upscale segment were more efficient than others. This study could provide managers, owners, and investors of lodging REITs preliminary evidence of the relationship between market segments and firm performance. This article also proposes a framework for future investigations to assess the performance of REITs.

Original languageEnglish (US)
Pages (from-to)215-232
Number of pages18
JournalInternational Journal of Hospitality and Tourism Administration
Volume13
Issue number3
DOIs
StatePublished - Jul 1 2012

Fingerprint

market
data envelopment analysis
lodging
analysis
Lodging
Market segments
Performance analysis
Real estate investment trusts
Financial performance

All Science Journal Classification (ASJC) codes

  • Tourism, Leisure and Hospitality Management

Cite this

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Performance Analysis of Lodging REITs in Relation to Market Segments. / Seo, Kwanglim; Sharma, Amit.

In: International Journal of Hospitality and Tourism Administration, Vol. 13, No. 3, 01.07.2012, p. 215-232.

Research output: Contribution to journalArticle

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