Title: Can we see the intangibles? Valuation of intangible assets for publicly traded hotel firms in the USA

Authors: Nan Hua, Arun Upneja

Addresses: Rosen College of Hospitality Management, University of Central Florida, 9907 Universal Boulevard, Orlando, FL 32819, USA. ' School of Hospitality Management, Pennsylvania State University, 217 Mateer Building, University Park, PA 16802, USA

Abstract: This study provides value estimates for intangible assets of publicly traded hotel firms in the USA. When evaluating a firm|s tangible and intangible assets, tests of model usefulness reveal that it is meaningful to decompose adjusted income (AI) into adjusted income derived from intangible assets (AII) and adjusted income derived from tangible assets (AIT). Specifically, a significant difference exists for contributions from AII and AIT to a firm|s market value of equity. Further, decomposing AI into AIT and AII releases incremental information to the market. The procedures employed use publicly available information and are easily replicable.

Keywords: valuations; intangible assets; intangibles; hotel industry; USA; United States; public companies; tangible assets; model usefulness; adjusted income; market value; equity; incremental information; stock markets; revenue management; hospitality management.

DOI: 10.1504/IJRM.2010.035959

International Journal of Revenue Management, 2010 Vol.4 No.3/4, pp.306 - 326

Published online: 11 Oct 2010 *

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