A Longitudinal Study of Equipment Leasing in the U.S. Lodging Industry

Exploring the impact of hotel attributes and services on price and revenue: A hedonic pricing model approach with a focus on internal and external segmentation and repeat customers

“…Noone and McGuire, (2013) found that hotels with price stability over time achieved higher RevPARs than their competitors, while Kim et al (2016) showed that short-term online price movements made by individual hotels led to higher RevPARs, although these variations in prices had negative effects on individual hotels' long-term revenues; these authors also showed that a positive relationship existed between hotel revenues and offline price dispersion, thus they recommended separate pricing strategies be adopted for each distribution channel. Jiang and Taylor (2020), in the USA, found that seasonality and variables relating to the hotel category, and to the hotel operating system, location and size, had similar effects on prices and on RevPAR. These are examples of works that used RevPAR, although, generally speaking, few academic studies have applied the measure, while it is very popular among revenue managers for assessing individual hotel performance and making inter-hotel comparisons.…”

“…RevPAR is widely used by managers in the hospitality sector and is a key indicator in the setting of hotel prices at the level of the individual hotel and in determining hotel revenue (Cross et al, 2009). While proposals have been made to incorporate RevPAR as a dependent variable into the HP model (Jiang and Taylor, 2020), few studies have analysed the concept. One reason for this lack of interest in RevPAR may be that occupancy data is not available through web scraping methods.…”

Business Cycle and Long-Term Debt: Effects on Hotel Operating Lease

“…Operating lease addresses that firms use lease for business equipment (e.g., telecommunication equipment, computers, kitchen equipment, and vehicles; Jiang & Schmidgall, 2011) and for operating properties (e.g., lands, buildings, and offices; Whitford, 1998). Although the financial statement requires footnoting disclosures of operational leases, various industries have long used operating leases as substitute for debt; often lower levels of debt are associated with increased use of operating leases (Adedeji & Stapleton, 1996;Franzen, Cornaggia, & Simin, 2009;Krishnan & Moyer, 1994;Marston & Harris, 1988;Singh, 2011;Yan, 2006).…”

“…Operating leases require shorter lease terms compared to the useful life of the asset, making obsolescence a non-factor for the hotel. Additionally, a hotel does not have to worry about disposal of the asset and has relatively more frequent opportunities to upgrade the asset (Jiang & Schmidgall, 2011;Upneja & Schmidgall, 2001).…”