An Investigation of the Relationship Between Selected Hotel Characteristics and Performance in the Extended Stay Hotel Segment

Mao, Zhenxing; Mi, Qinglin

doi:10.17265/2328-2169/2014.05.003

Cited by 1 publication

(2 citation statements)

References 12 publications

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“…In contrast to previous papers, Jacobson (1990), Brown and Dev (2000), Kim (2008) and Giannoukou (2016) find that hotel management contracts have a positive influence on hotel performance. Hsu and Jang (2009), Koh et al (2009), Mao and Mi (2014) or Moon and Sharma (2014) find a positive relationship with performance for franchise contracts.…”

Section: Introductionmentioning

confidence: 90%

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Analysis of the effect of growth strategies and hotel attributes on performance

Martorell Cunill,

Otero,

Durán Santomil

et al. 2024

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PurposeIn this vein, this paper aims to provide empirical evidence on the following questions: Which expansion strategies offer better operational and economic performance? What effects does performance-related diversification have? How do other factors such as size, quality, service offered, location or seasonality interact with performance.Design/methodology/approachIn this paper, the analysis of the effects of growth strategies and hotel attributes on performance is carried out with a sample of 255 hotels that operate internationally. Using panel data and quantile regression, this study evaluates the effect of expansion and diversification on the hotels’ performance.FindingsFrom these findings, it appears that the equity strategy (own hotels) outperforms non-equity strategies (hotels under rental, franchise and management contract) at the operational level. However, the economic return of the property, both adjusted and unadjusted to risk, is lower under the property ownership strategy than under the franchise and management strategies because, in general, it requires a higher investment. Regarding diversification, the growth strategy based on related diversification in food and beverage services has a negative impact on performance, calling into question the synergies between the two businesses. However, an exception to this effect is seen among those hotels, mainly those in the Caribbean, that opt to provide all-inclusive services, since these hotels achieve better occupancy rates and more stable results.Research limitations/implicationsThis study has not taken into account the effect of hotel property revaluation on the performance of the ownership strategy, as there is no information on the historical average revaluation at the level of each individual hotel. This study has also been unable to include information regarding the level of competition and seasonality of sales.Originality/valueThis paper considers a wide number of factors that can influence the performance of hotels. Second, this is the only paper that studies the impact of growth strategies from the point of view of the hotel chain. Also, the sample considered uses data at the individual level on hotels and this research analyses not only operational performance but also economic performance.

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Section: Introductionmentioning

confidence: 90%

“…Hsu and Jang (2009), Koh et al . (2009), Mao and Mi (2014) or Moon and Sharma (2014) find a positive relationship with performance for franchise contracts.…”

Section: Introductionmentioning

confidence: 93%

Analysis of the effect of growth strategies and hotel attributes on performance

Martorell Cunill,

Otero,

Durán Santomil

et al. 2024

View full text Add to dashboard Cite

show abstract

An Investigation of the Relationship Between Selected Hotel Characteristics and Performance in the Extended Stay Hotel Segment

Cited by 1 publication

References 12 publications

Analysis of the effect of growth strategies and hotel attributes on performance

Analysis of the effect of growth strategies and hotel attributes on performance

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