Degree Type


Date of Award


Degree Name

Master of Science


Apparel, Events and Hospitality Management

First Advisor

Tianshu Zheng


This research applied Jensen's alpha measure to analyze investment returns of hotels and casino hotels through the recent recession to determine if there were: (a) differences in risk-adjusted performance of these two types of hotels through various periods of the recession; and (b) which hotel outperformed the other during each period of the recession. The literature review addressed types of crises, the recession's impact on the hospitality industry, differences between casino hotels and hotels, and methods of investment returns. Given the purpose of this dissertation, Jensen's alpha measure was selected to measure the rate of return of hotels and casinos hotels. This study used weekly data of publicly traded hotel companies and casino hotel companies from January 2006 to December 2011, which consists of time periods of before, during, and after the recession. December 2007 to June 2009 was considered during the recession (The National Bureau of Economic Research, 2012). In addition to these three time periods, this study also examined the performance of hotels and casino hotels through the entire data by one-way ANOVA and independent t-test.

The paper, entitled "A comparative analysis on investment returns of hotels and casino hotels throughout the recession," examined compared investment returns before, during, and after the recent recession in comparison with the overall market. Each hotel category was compared with each other and with S&P 500 index. Beta was calculated using the weekly return of the stock and S&P 500, and return of 7-day U.S. Treasury bill was used as risk-free rate of return. Jensen's measure was performed on each property through four different time periods to test whether the two kinds of hotel perform better than the whole market portfolio. Finally, two one-way ANOVA and four t-tests were employed to determine if there were differences in performance in individual hotel sections throughout the recession. Findings revealed a high risk-adjusted performance with low market risk for both casino hotels and hotels. The mean Jensen alphas during various periods differed regardless of hotel or casino hotel section. Additionally, in the duration before the recession, casino hotels outperformed hotels, whereas during the recession, hotels performed casino hotels.


Copyright Owner

Yani Wei



File Format


File Size

59 pages