Dr. Mark Sunderman accepted for publication in Journal of Property Investment & Finance
For release: February 22, 2017
Dr. Mark Sunderman, Morris Fogelman Real Estate Chair of Excellence and professor of Finance, recently had a paper accepted for publication in Journal of Property Investment & Finance. The paper entitled, "Hospitality REITs and Financial Crisis: A Comprehensive Assessment of Market Quality," was co- authored with Dr. Spenser Robinson, Central Michigan University, Dr. Pawan Jain, University of Wyoming, and Dr. Arjun Singh, Michigan State University.
This paper examines market microstructure differences in stock market quality for hospitality REITs during the pre- and post-financial crisis eras. It assesses whether different trading strategies and/or organizational structures are based on differences in the underlying liquidity and volatility of hospitality REITs as compared to traditional REITs and the broader market. The paper uses established microstructure measures for liquidity, trading volumes, and risk assessment comparing daily and intraday trading patterns of REITs, hospitality REITs, and the broad market. The results suggest a quicker recovery of performance for hospitality REITs and some fundamental increases in liquidity measures post-crisis and highlight the differences in trading volumes, liquidity, and risk profile of hospitality REITs compared to traditional REITs in both the pre-and post-financial crisis periods. The quicker recovery of hospitality REITs in key trading measures may suggest trading strategies during periods of high volatility. This study fills the gap in the literature relative to microstructure studies and provides information to help hotel firms and portfolio managers choose an appropriate organizational structure or investment vehicle respectively.