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@article{ART002233823},
author={Yu, Hyun Sun and Seon-Jong Yoo},
title={Examining the Determinants of Short-run Hotel Room Demand and Room Rates : A Panel Data Simultaneous Equation Model},
journal={Korea Real Estate Review},
issn={2092-5395},
year={2017},
volume={27},
number={2},
pages={95-109}

TY - JOUR
AU - Yu, Hyun Sun
AU - Seon-Jong Yoo
TI - Examining the Determinants of Short-run Hotel Room Demand and Room Rates : A Panel Data Simultaneous Equation Model
JO - Korea Real Estate Review
PY - 2017
VL - 27
IS - 2
PB - korea real estate research institute
SP - 95
EP - 109
SN - 2092-5395
AB - This study examines the interrelationship between hotel room demand and room rates for three-star to five-star hotels located in major five metropolitan areas in South Korea during the 2000 to 2014 period. The Fixed Effects Two Stage Least Squares(FE2SLS) method through a panel data simultaneous equations model was estimated to uncover how hotel attributes and market attributes affect the number of rooms sold and the room price, Average Daily Rate(ADR). The estimated results indicate that ADR as an endogenous variable and exogenous variables such as the age of a hotel, one-year-lagged hotel's occupancy rate, the ratio of foreign guests, GRDP per capita, the growth rate in exchange rates, and one-year-lagged room inventories per land area are important determinants of the room demand function. In the short-run room rates function, including the number of rooms sold as an endogenous variable, exogenous variables such as the age of a hotel, the growth rate of foreign guests, the ratio of the number of employees in the lodging market, the ratio of one-year-lagged hotel’s ADR, and last year’s 3-month CD rates have significant effects on the room price. The empirical analysis is expected to provide useful implications on the hotel room demand and room pricing in South Korea for hotel owners, developer, and investors.
KW - hotel room demand;average daily rate(ADR);panel data simultaneous equations model;Fixed Effects Two Stage Least Squares(FE2SLS)
DO -
UR -
ER -

Yu, Hyun Sun and Seon-Jong Yoo. (2017). Examining the Determinants of Short-run Hotel Room Demand and Room Rates : A Panel Data Simultaneous Equation Model. Korea Real Estate Review, 27(2), 95-109.

Yu, Hyun Sun and Seon-Jong Yoo. 2017, "Examining the Determinants of Short-run Hotel Room Demand and Room Rates : A Panel Data Simultaneous Equation Model", Korea Real Estate Review, vol.27, no.2 pp.95-109.

Yu, Hyun Sun, Seon-Jong Yoo "Examining the Determinants of Short-run Hotel Room Demand and Room Rates : A Panel Data Simultaneous Equation Model" Korea Real Estate Review 27.2 pp.95-109 (2017) : 95.

Yu, Hyun Sun, Seon-Jong Yoo. Examining the Determinants of Short-run Hotel Room Demand and Room Rates : A Panel Data Simultaneous Equation Model. 2017; 27(2), 95-109.

Yu, Hyun Sun and Seon-Jong Yoo. "Examining the Determinants of Short-run Hotel Room Demand and Room Rates : A Panel Data Simultaneous Equation Model" Korea Real Estate Review 27, no.2 (2017) : 95-109.

Yu, Hyun Sun; Seon-Jong Yoo. Examining the Determinants of Short-run Hotel Room Demand and Room Rates : A Panel Data Simultaneous Equation Model. Korea Real Estate Review, 27(2), 95-109.

Yu, Hyun Sun; Seon-Jong Yoo. Examining the Determinants of Short-run Hotel Room Demand and Room Rates : A Panel Data Simultaneous Equation Model. Korea Real Estate Review. 2017; 27(2) 95-109.

Yu, Hyun Sun, Seon-Jong Yoo. Examining the Determinants of Short-run Hotel Room Demand and Room Rates : A Panel Data Simultaneous Equation Model. 2017; 27(2), 95-109.

Yu, Hyun Sun and Seon-Jong Yoo. "Examining the Determinants of Short-run Hotel Room Demand and Room Rates : A Panel Data Simultaneous Equation Model" Korea Real Estate Review 27, no.2 (2017) : 95-109.