The role of hotels in mixed asset portfolios: revisiting the asset-heavy versus asset-light debate Online publication date: Tue, 01-Mar-2016
by WeiKai Low; Prashant Das; Christophe Piffaretti
International Journal of the Built Environment and Asset Management (IJBEAM), Vol. 1, No. 4, 2015
Abstract: This paper examines the role of hotels in Markowitz's mixed assets portfolios. First, we compare the efficient frontiers of pure-play asset portfolios, namely S&P indices, and hotels (REITs, REOCs and NCREIF). Further, we break the hotel stocks into asset-heavy versus asset-light categories. We find that mixing pure-play hotel assets into the portfolio pushes the frontier favourably in the north-west direction. Contrary to popular expectation, we find that asset-heavy hotel enterprises are favoured compared to asset-light stocks.
Online publication date: Tue, 01-Mar-2016
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