Acquisitions, Shareholder Wealth and the Lodging Sector: 1980‐1990

Examines the shareholder wealth effects of acquisitions in the lodging sector during the 1980s. Using the event study method, estimates the size of additional wealth accruing to shareholders of hotel companies arising from an acquisition. Over a 61‐day period surrounding the announcement of an acquisition, shareholders of target hotel companies earned, on average, 31.5 per cent additional returns.