This article was published in The Appraisal Journal in summer of 2012. It can be accessed through Gale InfoTrac; navigate through the LibraryLink catalog or the IAAO website under "Resources."
Abstract:
The Revenue Per Available Room (RevPAR) Index can be used as an accurate method for estimating the major component of a hotel’s intangible business value. The brand contribution to revenue for six prominent hotel brands was estimated by comparing the RevPAR Index for the same hotels before and after a brand change. Hotel properties performed significantly better in RevPAR Index when operating under an upper-tier brand than they did when operating as independent or marginally branded properties. This shows brand value can be proven and is an accurate way to estimate the intangible value in a hotel property.