New Option in Hotel Appraisals: Quantifying the Revenue Enhancement Value of Hotel Brands

摘要

The Revenue Per Available Room (RevPAR) Index can be used as an accurate method for estimating the major component of a hotel's Intangible business value. The brand contribution to revenue for six prominent hotel brands was estimated by comparing the RevPAR Index for the same hotels before and after a brand change. Hotel properties performed significantly better in RevPAR Index when operating under an upper-tier brand than they did when operating as Independent or marginally branded properties. This shows brand value can be proven and Is an accurate way to estimate the Intangible value in a hotel property.