Faculty & Research
Refining Estimates of Hotel-financing Costs
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Vol 41 No 6
By: John W. O'Neill and Stephen Rushmore
Executive Summary: An analysis of the relationship between corporate "A" bond rates and hotel mortgage-interest rates found that the two are related. Specifically, bond rates in one quarter are a reasonably accurate predictor of interest rates in the following quarter. The most effective analysis involves a curvilinear multiple-regression equation that accounts for federal tax policy as well as bond rates to estimate the interest rates in the subsequent quarter.
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- Refining Estimates of Hotel-financing Costs By: John W. O'Neill and Stephen Rushmore
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