Abstract
This study investigates appraisal bias in the lodging sector and compares it with other commercial real estate sectors. Based on a sample of 4931 securitized mortgages, we document a significant positive relationship between leverage and appraisal bias in commercial real estate. Variation in bias with bias greater than five percent ranges from 21 % for retail properties to 46 % in the lodging sector. The results also show a significant positive association of appraisal bias with loan pricing, indicating that loan originators were aware of, and priced most, but not all risk. Consequently, the additional unpriced risk raises moral hazard concerns in the lodging CMBS securitization process. The overall results provide evidence that lodging property behavior is distinctly different from other commercial real estate properties.
| Original language | English (US) |
|---|---|
| Article number | 104609 |
| Journal | International Journal of Hospitality Management |
| Volume | 135 |
| DOIs | |
| State | Published - May 2026 |
All Science Journal Classification (ASJC) codes
- Tourism, Leisure and Hospitality Management
- Strategy and Management
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