Optimization of Tourism Real Estate Development Project Based on Option Premium Model
Compared with that of traditional housing real estate, the development of tourism real estate is time-consuming, complex, and irreversible. It is hard to guide investment decision-making on tourism real estate with the conventional discount cash flow (DCF) method. This paper aims to demonstrate that...
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| Format: | Article |
| Language: | English |
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Wiley
2021-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2021/2954795 |
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| author | Donglei Ying |
| author_facet | Donglei Ying |
| author_sort | Donglei Ying |
| collection | DOAJ |
| description | Compared with that of traditional housing real estate, the development of tourism real estate is time-consuming, complex, and irreversible. It is hard to guide investment decision-making on tourism real estate with the conventional discount cash flow (DCF) method. This paper aims to demonstrate that the real option method can improve and optimize the investment decision-making on tourism real estate. Through case analysis, the real option model, i.e., the classic American real option model, and binary tree value distribution model were adopted to analyze the factors affecting the real option of tourism real estate, optimize the development sequence of tourism real estate project, and demonstrate the phased development value of tourism real state, thereby enhancing the development value of tourism real estate projects. The case analysis proves that tourism real estate investment is fully consistent with real option in the uncertain spatiotemporal attributes: uncertainty, irreversibility, and timeliness. Therefore, tourism real estate project carries obvious features of real option. The decision-making by the real option model is much more scientific and superior than that by the conventional DCF method. Since the application of real option theory has been emphasizing housing real estate over tourism real estate, the research results enrich the theory on real option-based investment decision-making for real estate and expand the application scope of real option. |
| format | Article |
| id | doaj-art-ffb733cfa29b4b00b1be77562a9f7204 |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-ffb733cfa29b4b00b1be77562a9f72042025-02-03T01:25:10ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2021-01-01202110.1155/2021/29547952954795Optimization of Tourism Real Estate Development Project Based on Option Premium ModelDonglei Ying0School of Economics and Management, Tongji University, Shanghai 200092, ChinaCompared with that of traditional housing real estate, the development of tourism real estate is time-consuming, complex, and irreversible. It is hard to guide investment decision-making on tourism real estate with the conventional discount cash flow (DCF) method. This paper aims to demonstrate that the real option method can improve and optimize the investment decision-making on tourism real estate. Through case analysis, the real option model, i.e., the classic American real option model, and binary tree value distribution model were adopted to analyze the factors affecting the real option of tourism real estate, optimize the development sequence of tourism real estate project, and demonstrate the phased development value of tourism real state, thereby enhancing the development value of tourism real estate projects. The case analysis proves that tourism real estate investment is fully consistent with real option in the uncertain spatiotemporal attributes: uncertainty, irreversibility, and timeliness. Therefore, tourism real estate project carries obvious features of real option. The decision-making by the real option model is much more scientific and superior than that by the conventional DCF method. Since the application of real option theory has been emphasizing housing real estate over tourism real estate, the research results enrich the theory on real option-based investment decision-making for real estate and expand the application scope of real option.http://dx.doi.org/10.1155/2021/2954795 |
| spellingShingle | Donglei Ying Optimization of Tourism Real Estate Development Project Based on Option Premium Model Discrete Dynamics in Nature and Society |
| title | Optimization of Tourism Real Estate Development Project Based on Option Premium Model |
| title_full | Optimization of Tourism Real Estate Development Project Based on Option Premium Model |
| title_fullStr | Optimization of Tourism Real Estate Development Project Based on Option Premium Model |
| title_full_unstemmed | Optimization of Tourism Real Estate Development Project Based on Option Premium Model |
| title_short | Optimization of Tourism Real Estate Development Project Based on Option Premium Model |
| title_sort | optimization of tourism real estate development project based on option premium model |
| url | http://dx.doi.org/10.1155/2021/2954795 |
| work_keys_str_mv | AT dongleiying optimizationoftourismrealestatedevelopmentprojectbasedonoptionpremiummodel |