Green Premium Pricing and Investment Returns in the Hospitality Sector: A Systematic Review of Financial Viability Evidence for Eco-Hotels in Emerging Markets
Keywords:
green hotel investment, ROI, price elasticityAbstract
This paper reviews the financial evidence on eco-hotel investment viability across four areas: (1) cost-benefit and ROI of green certification; (2) price elasticity of demand; (3) green lending and bank credit risk; and (4) ESG and sustainable finance in emerging markets. The review finds that green certification generates returns through both cost savings and revenue premiums, that hotel demand is generally inelastic enough to support a moderate green rate premium, that lending to green hotel borrowers reduces bank credit risk, and that blended finance from multilateral development banks is a necessary tool for making eco-hotel projects viable in Central Asian markets such as Uzbekistan. A financial viability framework and seven hypotheses for empirical testing are proposed
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