The profitability impact of REIT requirements: A comparative analysis of hotel REITS and hotel C-Corporations

The profitability impact of REIT requirements: A comparative analysis of hotel REITS and hotel C-Corporations

This study aims to investigate whether hotel REITs are more profitable than hotel C-Corps and how REIT regulations contribute to this difference. The results indicate that despite the differences in tax obligation, operating expense, and dividend policy, hotel REITs and hotel C-Corporations are not significantly different in profitability. However, the analysis suggests that hotel C-Corps have advantage over hotel REITs in improving profitability through dividend payout increases.



Tang, C., & Jang, S. (2008, December). The profitability impact of REIT requirements: A comparative analysis of hotel REITS and hotel C-Corporations. International Journal of Hospitality Management, 27(4), 614-622. Retrieved October 17, 2008, doi:10.1016/j.ijhm.2007.07.026