A recently constructed data series suggests that the hotel industry has experienced two rather large building booms from 1969 to 1994. By contrast, hotel demand seems to move closely with the United States economy, at a much higher cyclic frequency. Occupancy and room rental rates follow the slower movements in supply. A structural model is estimated over this series which displays long lags between occupancy and room rental rate changes, as well as between room rental rates and new supply. These lags create a system of difference equations that is close to being dynamically unstable. Forecasting forward with smooth economic growth, yields a new and even larger future building boom.
CITATION STYLE
Wheaton, W. C., & Rossoff, L. (1998). The cyclic behavior of the U.S. lodging industry. Real Estate Economics, 26(1), 67–82. https://doi.org/10.1111/1540-6229.00738
Mendeley helps you to discover research relevant for your work.