Articles

Quantifying Chicago’s Pent-Up Lodging Demand

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Hans Detlefsen

Chicago’s Sold-Out Hotel Nights Represent 1.6 Million Unaccommodated Room Nights of Lodging Demand Annually Introduction Popular tourism and business destinations, like Chicago, experience significant weekly and monthly fluctuations in lodging demand. Different leisure, corporate, and convention travel schedules combine to create patterns of peak lodging demand throughout Chicago’s downtown area. June is the busiest month, […]

Articles

Hotel Development & Public-Private Partnerships

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Hans Detlefsen

Public-Private Partnerships This article discusses how communities can use public-private partnerships to attract hotel development projects and why policy makers should care about developers’ cost of capital. Although many communities have identified the need for a new hotel or conference center, market demand may not be sufficient to cause the private sector to develop such […]

Articles

Consumer Surplus vs. Market Value in Hotel Appraisals

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Hans Detlefsen

Why Some Appraisers Confuse Consumer Surplus with Property Value in Hotel Appraisals Introduction Many hotel appraisals overestimate personal property value. This seems to occur mainly in appraisals prepared for property tax appeals. Perhaps not coincidentally, hotel owners in certain taxing jurisdictions benefit when more of their overall hotel value is classified as personal property (e.g. […]