{"id":3326,"date":"2021-10-01T17:59:22","date_gmt":"2021-10-01T09:59:22","guid":{"rendered":"http:\/\/www.gssinst.org\/irer\/?p=3326"},"modified":"2025-12-03T02:59:07","modified_gmt":"2025-12-02T18:59:07","slug":"development-strategies-in-a-market-of-high-vacancies-and-sticky-rates-the-case-of-the-hotel-industry","status":"publish","type":"post","link":"https:\/\/www.gssinst.org\/irer\/2021\/10\/01\/development-strategies-in-a-market-of-high-vacancies-and-sticky-rates-the-case-of-the-hotel-industry\/","title":{"rendered":"Development Strategies in a Market of High Vacancies and Sticky Rates \u2013 The Case of the Hotel Industry"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3326\" class=\"elementor elementor-3326\" data-elementor-settings=\"[]\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6b084dbc elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6b084dbc\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-47d15be8\" data-id=\"47d15be8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-73767d13 elementor-widget elementor-widget-text-editor\" data-id=\"73767d13\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\"><div class=\"article_label\">Article<\/div><p class=\"article_title\">Development Strategies in a Market of High Vacancies and Sticky Rates \u2013 The Case of the Hotel Industry<\/p><div><p class=\"title_label_large\">Author<\/p><p class=\"title_label_large\">Start Page \/ End Page<\/p><p class=\"title_label\">Volume<\/p><p class=\"title_label\">Issue Number<\/p><p class=\"title_label\">Year<\/p><p class=\"title_label_large\">Publication<\/p><\/div><div><p><!-- Author \/ StartEndPage \/ Volume \/ IssueNumber \/ Year \/ Publication --><\/p><p class=\"title_text_large\">Rose Neng Lai, Lawrence Hoc Nang Fong<\/p><p class=\"title_text_large\">363 \/ 383<\/p><p class=\"title_text\">24<\/p><p class=\"title_text\">3<\/p><p class=\"title_text\">2021<\/p><p class=\"title_text_large\">International Real Estate Review<\/p><\/div><div class=\"empty\">\u00a0<\/div><p class=\"abstract_label\">Abstract<\/p><p><!-- Abstract Content --><br \/>This paper discusses the concurrence of vacancy and ongoing construction under inflexible rents, taking the hotel industry as an area of application. The prevalent modest occupancy in the hotel industry of the United States has led to questions about the ongoing construction of hotels, even if average daily rates (ADRs) have not been reduced to eliminate the excess supply. By constructing a framework based on a game theory approach in market equilibrium, developers can determine the optimal timing to construct the development. Given this option to build, both profit and a double-digit vacancy rate can coexist with inflexible ADRs that exceed the market equilibrium threshold. The option framework also allows the management to project occupancy rates and profits of their existing premises before entering price wars even if their rivals build new projects.<\/p><p>\u00a0<\/p><p><!-- PDF DownloadLink --><\/p><p class=\"download\"><a href=\"http:\/\/www.gssinst.org\/irer\/wp-content\/uploads\/2021\/10\/v24-no3-2_Development-Strategies-in-a-Market-of-High-Vacancies-and-Sticky-Rates-\u2013-The-Case-of-the-Hotel-Industry.pdf\"><strong>View PDF -https:\/\/doi.org\/10.53383\/100325<\/strong><\/a><\/p><div class=\"empty\">\u00a0<\/div><p class=\"abstract_label\">Keywords<\/p><p><!-- Keywords --><\/p><div><p class=\"p1\">Oversupply, sticky rent, real options, game theory, hotel construction<\/p><\/div><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Article Development Strategies in a Market of High Vacancies and Sticky Rates \u2013 The Case of the Hotel Industry Author&hellip;<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"article-template.php","format":"standard","meta":[],"categories":[225,224],"tags":[],"_links":{"self":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts\/3326"}],"collection":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/comments?post=3326"}],"version-history":[{"count":3,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts\/3326\/revisions"}],"predecessor-version":[{"id":4689,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts\/3326\/revisions\/4689"}],"wp:attachment":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/media?parent=3326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/categories?post=3326"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/tags?post=3326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}