An analysis of the major equity valuation models as applied to the lodging industry

Very few academic studies have systematically attempted to evaluate equity valuation models in the lodging industry. Most academic papers in the mainstream finance and accounting literature either exclude hospitality firms or do not examine them in detail. For example, it is very common to find academic papers that exclude all service sector firms. The lodging sector has many characteristics that differentiate it from other economic sectors in the U.S. For example, lodging is very capital intensive, however, the performance is heavily dependent upon the quality of the service interaction with the customers. Therefore, we cannot directly conclude that the results of research that has excluded lodging firms can be extended to lodging firms.