What makes hotel values in the UK? A hedonic valuation model

The purpose of this paper is to develop a hedonic valuation model for hotel properties in the UK. Regression and hotel property transactions in the UK between 1996 and 2002 are used to estimate a value equation that predicts property values and reveals value drivers in the UK. Results are compared to a US study and are found to be similar. It was confirmed in both studies that physical facilities and local economic conditions are significant in explaining value and they both had positive relationship with sale prices. The size of the property, economic conditions, recreational facilities and year of sale explained 73 percent of hotel values where meeting and banqueting facilities, chain affiliation, food and beverage operations and location only explained 27 percent of total value.[PUBLICATION ABSTRACT]