The choice of management structure is growing in importance for hotel owners. Most owners’ investment theses are based on an attractive acquisition basis, focusing on net cash flow and the sales exit. Depending on the market, transaction price may be influenced by asset level performance which is highly influenced by daily revenue and expense decisions. Hotel brands quantify their value via measures that include market share and loyalty of a customer base. While much research has been conducted on the impact of brands on market value, the influence of hotel management on resale value has not been well investigated. This study seeks to ascertain whether management companies that have a larger reach also have a proportional impact on the sales price, enjoying the economy of scale. The current study isolated the value of a brand to identify the impact of the size of the management company on hotel sales price. Transaction data included U.S. hotel sales over a 19-year timeframe (2001-2019). The impact of management size on hotel sales value is investigated by answering: (1) if there is an economies of scale effect between management size and sale price, (2) if the size of the hotel influences the impact of management, and (3) if such effect differs by location. The results point to a relationship between management size and hotel sales price, which varies by geography and property size. The findings will enable hotel owners to consider an additional investment variable when buying or selling hotels.

Library of Congress Subject Headings

Hotel management; Hotels -- Finance; Real estate investment

Date of Award


School Affiliation

Graziadio Business School



Degree Type


Degree Name


Faculty Advisor

Dongshin Kim