Keywords
Vacation Home, Short Term Rental, Airbnb, Valuation, Hedonic Price Model
Abstract
This dissertation innovatively extends the hedonic value model by crafting a comprehensive and novel econometric framework to analyze the mediating role of financial performance in the valuation of vacation rental properties. The study not only conducts an empirical analysis of the fundamental hedonic determinants of vacation rentals’ performance and value but also examines the influence of vacation rental performance on their valuation by leveraging the capitalization rate theory, a prevalent metric for evaluating commercial real estate value, to ascertain its applicability in forecasting the worth of vacation rentals. The core contribution of this study is the discovery of how short-term rentals are assessed in Central Florida, the key factors contributing to their performance and value, and whether the current valuation methods are suited to the current market needs. The methodology is grounded in robust panel data analysis, encompassing annual performance metrics from the Central Florida market between 2014 and 2023. This approach integrates short-term rentals' extended property-level information and monthly performance databases from AirDNA with the comprehensive real estate database offered by Stellar-MLS, which includes property listing history, market sales, and property details available exclusively to licensed realtors in Central Florida. To integrate these two datasets, a location-based tool was developed using Python and Google API resources to match property addresses and calculate the total distance and driving time to main attractions in the area. Results confirmed the influence of performance on vacation rental valuation and the mediation effect of performance on the relationship between property attributes and value. The findings revealed that the valuation of vacation rentals in Central Florida is better suited to commercial-oriented real estate assessments rather than traditional residential appraisals. These transformative insights provide a robust econometric tool for better predicting the value and performance of vacation rentals, benefiting a range of stakeholders, including vacation rental owners, investors, and policymakers.
Completion Date
2024
Semester
Summer
Committee Chair
Hua, Nan
Degree
Doctor of Philosophy (Ph.D.)
College
Rosen College of Hospitality Management
Format
application/pdf
Identifier
DP0028592
URL
https://purls.library.ucf.edu/go/DP0028592
Language
English
Rights
In copyright
Release Date
August 2024
Length of Campus-only Access
None
Access Status
Doctoral Dissertation (Open Access)
STARS Citation
Medeiros, Marcos, "Unveiling Financial Performance as a Mediator in Vacation Rentals' Valuation: Evidence from the Central Florida Market" (2024). Graduate Thesis and Dissertation 2023-2024. 389.
https://stars.library.ucf.edu/etd2023/389
Accessibility Status
Meets minimum standards for ETDs/HUTs