Graduation Year

Fall 2010

Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Henrik Cronqvist


I was interested in researching the underlying factors that drove resiliency in regional U.S. hotel markets. I did this by conducting an empirical analysis of twenty nine different markets post September 11 and investigating general, leisure and business variables. I concluded that leisure variables were the underlying drivers of resiliency in regional U.S. hotel markets.

I then conducted an event study to try to apply my findings to stock market prices of publicly traded hotel companies. Although it was a challenge to differentiate between companies that depended more on leisure versus business customers due to their asset diversification, I categorized each company into one of the two subsets. If my findings held, I would assume that that the cumulative abnormal returns for the companies that relied on business customers would be more negative than the companies who relied on leisure customers. However, this was not the case, so the findings that leisure variables drive market resiliency were not a good predictor of stock market reaction.

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