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OTAs Hitting Hotel Owners Where It Hurts: Real Estate Values

Written by Kalibri Labs - IT | Nov 3, 2016

OTAs Hitting Hotel Owners Where It Hurts: Real Estate Values

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According to the report, entitled: Demystifying the Digital Marketplace“the revenue retained by US hotels after paying all customer acquisition costs declined by almost .4% or $600 million… That $600M in additional cost would have contributed directly to net operating income. Using an 8% capitalization rate (which most investors require), these additional acquisition costs of $600 million reduced the asset value of the overall hotel industry by at least $7.5 billion.”

View the article on Hotel Online 

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