Award Date

5-2009

Degree Type

Professional Paper

Degree Name

Master of Science in Hotel Administration

Department

Hotel Administration

First Committee Member

Michael Dalbor, Chair

Number of Pages

33

Abstract

This research paper compares lodging REITs using DuPont analysis. The study examined United States publicly traded lodging REITs’ balance sheets, income statements, and cash flow statements between the quarterly periods of 12/31/1997 to 12/31/2005. Lodging REITs have to adhere to the REIT status guidelines, 90 percent of their taxable income must be distributed as dividends to shareholders and at least 75 percent of their income must come from real estate. Lodging REITs do not have government requirements on how a firm must efficiently manage its operations through financial leverage. The results indicate that there is a disparity between individual lodging REITs and the use of financial leverage. An overview of the use of financial leverage and a lodging REIT shareholder’s equity is described in this paper.

Keywords

Commercial real estate; Hotels; Investments; Rate of return; Real estate investment trusts

Disciplines

Hospitality Administration and Management | Portfolio and Security Analysis

Language

English


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