Third, this research focuses on the operating performance of hotels, measured as
RevPAR and NOIPAR, but does not take into consideration the value or investment of
the hotels. A hotel’s operating performance (i.e. RevPAR and NOIPAR) is related to the
owner’s investment in the particular hotel. While a hotel’s operating performance is
essential to its value, one of the ultimate goals of hotel owners is to achieve superior, or
at least acceptable, return on investment. Hypothetically, a hotel may have the highest
possible RevPAR and NOIPAR, but may be still unprofitable to its owner because of
excessive investment cost. Future research linking hotel owners’ strategies to their
desired and/or realized return on investment will be particularly valuable to the hotel
investment community.