Bello, N U; Jolaoso, A B and Olanrele, O O (2018) Comparative analysis of investment attributes of hotel and commercial property in South-Western Nigeria. African Journal of Built Environment Research, 2(1), pp. 1-20. ISSN 2414-0236
Abstract
Investment in real estate extends beyond property use on annual tenancy or short leases basis, but also includes the provision of accommodation with varied renting patterns such as short let and time share. Generally, hospitality industry comprises of commercial and non-commercial activities and services; it is an investment that is housed in a real estate asset that renders services in trade form. Technically, hotel investment is one of the breeds of real estate investment, but practically considered more as a part of the breed of pure business investment. This empirical work therefore highlighted and compared the attributes of hotel investment and commercial property investment measuring their performance through occupancy rate analysis. From a sample of 177 commercial properties and 70 hotel properties in the central business districts of Ikeja, Abeokuta, Ibadan, Osogbo, Akure and Ado-Ekiti; adopting a questionnaire survey on investment managers of these two property investment options. The research findings revealed that commercial and hotel properties have similarity in 4 of the qualitative variables and different in the remaining 8 variables. The study further revealed no significant difference in the occupancy rate of commercial property (0.89) and the hotel property (0.80) as reflected by the Kolmogorov Smirnof (K/S) two sample tests. Although this seemed to be the first comparative study of direct commercial property and direct hotel property investment attributes in Nigeria, it is concluded that hotel property could be a more attractive and better investment as revealed by the short-term advance payment attribute and its dynamic response to economic situation than the commercial property. It is recommended that subsequent study should extend to investment characteristics through trend analysis of return on these investments.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | commercial real estate; hospitality; hotel; investment; Nigeria; occupancy rate; questionnaire survey |
| Index terms: | questionnaire, real estate, occupancy rate, commercial property, hotel, comparative study, option, property investment, lease, hospitality, tenancy, manager, Nigeria, real estate investment, commercial real estate, survey, comparative analysis |
| Subjects: | real estate economics, property law, data analysis and analytics, economic analysis, data collection methods, construction type, research design and methodology, practitioner, decision analysis, asset management, industry analysis, land economics, Geography |
| Topics: | Urban Studies, Legal Issues, Roles and Professions, Risk Management, Procurement, Construction Technology, Business Strategy, Geographical Context, Research Practice |
| Descriptive scope: | 4 PCEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here