Publication Date

2011

Abstract

[Excerpt] The last couple of chapters have discussed your potential for success as the owner of a hospitality business and related real estate. It's true that the possibilities are great, but before you plunge ahead, you should realize that you are considering one of the riskiest forms of commercial real estate investment. Owning a hotel is unlike owning any other form of real estate. As a hotel owner, you face not only the usual risks associated with commercial real estate investments but also hotel-specific risks. Depending on your level of optimism, this can either represent a golden opportunity to obtain a higher rate of investment return or be a signal to consider other property types with lower risks. In either case, your correct decision as to whether to own a hotel will depend on your ability to not only understand the nature of hotel risks, but also to develop strategies to mitigate their effects.

Comments

Required Publisher Statement
© Wiley. Final version published as: Liu, P., & Quan, D. (2011). Measuring hotel risk and financing. In M. C. Sturman, J. B. Corgel, & R. Verma (Eds.), The Cornell School of Hotel Administration on hospitality: Cutting edge thinking and practice (pp. 333-350). New York, NY: Wiley. Reprinted with permission. All rights reserved.

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