A Model of Investment in the Sydney Four and Five Star Hotel Market

Industry Commission staff information paper

This paper was released in October 1996.

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Preliminaries
Copyright, Preface, Contents, Executive Summary

1 Review Of The Hotel Market
1.1 4 and 5 star hotels, Sydney 1987 to 1994
1.2 Other sectors and earlier periods

2 Previous Studies of Demand and Supply

3 Dynamic Models of Supply and Demand
3.1 Demand
3.2 Supply
3.3 Pricing constraints

4 Explaining Supply and Demand
4.1 Investment in Sydney 4 and 5 star hotels under full information
4.2 Investment in Sydney 4 and 5 star hotels under limited information
4.3 Capital gains expectations and other investment considerations

5 Summary

APPENDICES

A Mathematical representation of the model

B Estimation of the operating cost function

C Model validity and sensitivity analysis

References