Exploring hotel appraisal determinants amid sales trend during COVID-19 pandemic: using a DANP-mV model

    Chui-Hua Liu Affiliation
    ; Bochner Liu Affiliation


In the current hotel sales trend due to COVID-19 pandemic, few empirical studies have discussed hotel appraisal determinants and prioritization in terms of operational efficiency. This paper presents an innovative approach for appraisal practice efficiency based on hotel appraisal approach and the multiple criteria decision making (MCDM). The DANPmV model is used to identify the determinants related to actual hotel appraisal practices, including the techniques of the decision-making trial and evaluation laboratory (DEMATEL), DEMATEL-based ANP (DANP), and modified VIKOR. The result of influential network relationship map (INRM) and the gaps of determinants to the aspiration level may contribute to improving hotel appraisal efficacy. In practice, the “discounted cash flow” becomes the most influential determinant (dimension) and the “market survey” is the most manageable one. More findings together with an action plan are presented and useful in the real world. Therefore, this innovative approach could help hotel appraisers and related parties, such as hospitality managers, investors, lenders, and decision makers, better manage the evaluation determinants of hotel appraisal efficacy.

Keyword : hotel appraisal, hotel appraisal approach, DANP-mV model, human problem solving theory, hotel evaluation determinants

How to Cite
Liu, C.-H., & Liu, B. (2022). Exploring hotel appraisal determinants amid sales trend during COVID-19 pandemic: using a DANP-mV model. International Journal of Strategic Property Management, 26(4), 258–271.
Published in Issue
Aug 31, 2022
Abstract Views
PDF Downloads
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.


American Society of Appraisers. (2020). Join ASA.

Appraisal Institute. (2014). Commonly asked questions about real estate appraisers and appraisals.

Chang, C. C. (1995). The study of hotel appraisal approach [Unpublished master thesis]. Feng-Chia University.

Chang, K. C. (2019). A study on the real estate capitalization rate – the analysis of market extract method. Chengchi University.

Chen, F. H. (2011). Are appraisers rational? Journal of Housing Study, 20(2), 47–60.

China Times. (2021, July 3). Taiwanese hotels are on sale.

Corgel, J. B., & deRoos, J. A. (1993). The ADR rule-of-thumb as predictor of lodging property values. International Journal of Hospitality Management, 12(4), 353–365.

Dalbor, M. C., & Andrew, W. P. (2000). Agency problems and hotel appraisal accuracy. An exploratory study. International Journal of Hospitality Management, 19(4), 353–360.

Department of Land Administration, Ministry of Interior Affairs. (2020). Real-estate appraiser database.

DeRoos, J., & Rushmore, S. (1995). Investment values of lodging property: modeling the effects of income taxes and alternative lender criteria. The Cornell Hotel and Restaurant Administration Quarterly, 36(6), 62–69.

DeVellis, R. F. (2016). Scale development: theory and applications. Sage Publications.

Fontela, E., & Gabus, A. (1976). The DEMATEL observer (DEMATEL 1976 report). Battelle Geneva Research Center.

Fu, J., Sheel, A., & Lang, J. (2013). A reexamination of current hotel valuation techniques – which approach is more realistic? The Journal of Hospitality Financial Management, 21, 17–30.

Gabus, A., & Fontela, E. (1973). Perceptions of the world problematique: communication procedure, communicating with those bearing collective responsibility (DEMATEL report No. 1). Battelle Geneva Research Center.

Good Earth CPA. (2017, September 26). 600 hotels throughout Taiwan are looking for sale? A shuffle in the hotel market is just on the go.

Hinton, B. B. (2008). Valuing limited-service hotels: a pragmatic framework from a broker’s perspective. The Appraisal Journal, 76(1), 47–53.

Hosseini, A., Pourahmad, A., Ayashi, A., Tzeng, G.-H., Banaitis, A., & Pourahmad, A. (2021). Improving the urban heritage based on a tourism risk assessment using a hybrid fuzzy MADM method: the case study of Tehran’s central district. Journal of Multi-Criteria Decision Analysis, 28(5–6), 248–268.

Hotel Business. (2020). Buying and selling hotels during the pandemic: factors to consider for hotel owners and investors.

Jackson, L. A. (2009). Lodging REIT performance and comparison with other equity REIT returns. International Journal of Hospitality & Tourism Administration, 10(4), 296–325.

Kisilevich, S., Keim, D., & Rokach, L. (2013). A GIS-based decision support system for hotel room rate estimation and temporal price prediction: the hotel brokers’ context. Decision Support Systems, 54(2), 1119–1133.

Lee, C. S., Lee, C. W., & Chen, C. W. (2011). A study of the tourist hotel development indicators. Journal of Architecture, 77, 107–118.

Lee, S., O’Neill, J. W., & McGinley, S. (2016). Effects of economic conditions and other factors on hotel sale prices. International Journal of Contemporary Hospitality Management, 28(10), 2267–2284.

Lin, P. J., Shiue, Y. C., Tzeng, G. H., & Huang, S. L. (2019). Developing a sustainable long-term ageing health care system using the DANP-mV model: empirical case of Taiwan. International Journal of Environmental Research and Public Health, 16(8), 1349.

Lin, S. H., Hsu, C. C., Zhong, T., He, X., Li, J. H., Tzeng, G. H., & Hsieh, J. C. (2021). Exploring location determinants of Asia’s unique beverage shops based on a hybrid MADM model. International Journal of Strategic Property Management, 25(4), 291–315.

Lin, Y. Y. (2006). Real estate appraisal (11th ed.). Wen-sheng Book Store.

Liu, C. H. (2018). Schemes for enhancing Taiwanese cruise PAK relationships using the hybrid MADM model. Tourism Management, 69, 510–522.

Liu, C. H. (2020). Strategies of managing coach driver job stress for sustainable coach tourism industry—the use of DANP-V model. Sustainability, 12(9), 3690.

Liu, C. H., & Liu, B. (2021). Using DANP-mV model to improve the paid training measures for travel agents amid the COVID-19 pandemic. Mathematics, 9(16), 1924.

Liu, C. H., Lee, M. H., & Lian, L. Y. (2012a, March 17). Examining hotel appraisal: using DEMATEL model [Conference presentation]. MCU Tourism International Conference, Taipei.

Liu, C. H., Tzeng, G. H., & Lee, M. H. (2012b). Improving tourism policy implementation – the use of hybrid MCDM models. Tourism Management, 33, 413–426.

Liu, C. H., Tzeng, G. H., & Lee, M. H. (2013a). Strategies for improving cruise product sales using hybrid ‘multiple criteria decision making’ models. The Service Industries Journal, 33(5), 542–563.

Liu, C. H., Tzeng, G. H., & Lee, P. Y. (2019). Combined CFPR and VIKOR model for enhancing the competencies of domestic chain hotel groups. International Journal of Information Technology & Decision Making, 18(03), 901–927.

Liu, C. H., Tzeng, G. H., Lee, M. H., & Lee, P. Y. (2013b). Improving metro–airport connection service for tourism development: using hybrid MCDM models. Tourism Management Perspectives, 6, 95–107.

Liu, C. H., Tzeng, G. H., Lee, M. H., Tseng, H. L., & Lee, P. Y. (2012c). Using a hybrid MCDM model combining fuzzy DEMATEL Technique to examine the job stress of coach driver. In J. Watada, T. Watanabe, G. Phillips-Wren, R. J. Howlett, & L. C. Jain (Eds.), Intelligent decision technologies (Vol. 16, pp. 149–156). Springer.

Lu, I. Y., Kuo, T., Lin, T. S., Tzeng, G. H., & Huang, S. L. (2016). Multicriteria decision analysis to develop effective sustainable development strategies for enhancing competitive advantages: case of the TFT-LCD industry in Taiwan. Sustainability, 8(7), 646.

Lung, C. I. (2010). The whole values evaluate study of real estate possessed superficies [Thesis, Graduate of Industry Economics]. National Central University.

Maliene, V. (2011). Specialised property valuation: multiple criteria decision analysis. Journal of Retail and Leisure Property, 9, 443–450.

Opricovic, S. (1998). Multicriteria optimization of civil engineering systems [PhD thesis]. Faculty of Civil Engineering, Belgrade.

Opricovic, S., & Tzeng, G. H. (2002). Multicriteria planning of post-earthquake sustainable reconstruction. Computer-Aided Civil and Infrastructure Engineering, 17(3), 211–220.

Opricovic, S., & Tzeng, G. H. (2007). Extended VIKOR method in comparison with outranking methods. European Journal of Operational Research, 178(2), 514–529.

Opricovic, S., & Tzeng, G.-H. (2004). Compromise solution by MCDM methods: a comparative analysis of VIKOR and TOPSIS. European Journal of Operational Research, 156(2), 445–455.

Qu, G. B., Zhao, T. Y., Zhu, B. W., Tzeng, G. H., & Huang, S. L. (2019). Use of a modified DANP-mV model to improve quality of life in rural residents: the empirical case of Xingshisi village, China. International Journal of Environmental Research and Public Health, 16(1), 153.

Roubi, S. (2004). The valuation of intangibles for hotel investments. Property Management, 22(5), 410–423.

Rushmore, S. (1984). The appraisal of lodging facilities—update. Cornell Hotel and Restaurant Administration Quarterly, 25(3), 35–46.

Rushmore, S. (1992). Seven current hotel-valuation techniques. Cornell Hotel and Restaurant Administration Quarterly, 33(4), 49–56.

Saaty, T. L. (1996). Decision making with dependence and feedback: the Analytic Network Process. RWS Publications.

Singh, A., & Schmidgall, R. (2005). Future events and their impact on financial management in the US lodging industry: Delphi study to predict changes in 2007 and 2027. Journal of Retail & Leisure Property, 4.

Taiwan Tourism Bureau. (2020a). Taiwan Tourism Bureau (Spending). Tourism Statistics Database.

Taiwan Tourism Bureau. (2020b). Taiwan Tourism Bureau (room). Tourism Statistics Database.

Taylor, S. (2003). What is your hotel worth? Lodging Hospitality, 43–50.

Tzeng, G. H., & Huang, J. J. (2011). Multiple attribute decision making: methods and applications. Chapman and Hall/CRC.

Tzeng, G. H., Lin, C. W., & Opricovic, S. (2005). Multi-criteria analysis of alternative-fuel buses for public transportation. Energy Policy, 33(11), 1373–1383.

World Travel & Tourism Council. (2020). Monthly economic impact—March 2020.

Yang, J. L., & Tzeng, G. H. (2011). An integrated MCDM technique combined with DEMATEL for a novel cluster-weighted with ANP method. Expert Systems with Applications, 38(3), 1417–1424.

Zhu, B. W., Zhang, J. R., Tzeng, G. H., Huang, S. L., & Xiong, L. (2017). Public open space development for elderly people by using the DANP-V model to establish continuous improvement strategies towards a sustainable and healthy aging society. Sustainability, 9(3), 420.

Zhuang, Z. Y., Lin, C. C., Chen, C. Y., & Su, C. R. (2018). Rank-based comparative research flow benchmarking the effectiveness of AHP–GTMA on aiding decisions of shredder selection by reference to AHP–TOPSIS. Applied Sciences, 8(10), 1974.