The use of management contracts by international hotel firms in Thailand

Panvisavas, Veerades; Taylor, Jonathan

doi:10.1108/09596110610658634

Cited by 17 publications

(18 citation statements)

References 6 publications

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“…For example, a recent study shows that, when well-established brands pursue international expansion through management contracts, their core competence related to their management expertise, such as human resources, may be influenced (Gannon et al, 2010). Panvisavas and Taylor's (2006) study also revealed that the practice of management contract was different in Thailand compared to in the USA. Consequently, it is reasonable to suspect that the effects of brand and/or operator on hotel financial performance may vary in different countries.…”

Section: Conclusion and Limitationsmentioning

confidence: 99%

The role of hotel owners: the influence of corporate strategies on hotel performance

Xiao

O’Neill

Mattila

2012

International Journal of Contemporary Hospitality Management

102

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Purpose-The purpose of this paper is to examine corporate strategic effects on hotel unit performance. Taking a hotel owner's perspective, the relationship between four types of the owner's corporate level strategies and the hotel property financial performance are examined. Design/methodology/approach-This study is built on a secondary data set provided by Smith Travel Research. A total of 2,012 hotels across the USA were analyzed for the period between 2003-2005. Findings-The findings support the existence of corporate effects in the US lodging industry. It is revealed that a hotel owner's corporate strategies do influence hotel property level financial performance. Specifically, a hotel owner's expertise in implementing superior strategies regarding segment, brand, operator, and location (i.e. state) are critical to hotel unit financial performance. Research limitations/implications-The main limitations of this study include the limited number of years with available data, lack of knowledge on the names of hotel owners, brands and operators, and the performance measures focusing only operating but not value/return measures. Practical implications-This research shows that a hotel owner can have significant influence on the operating performance of its hotel properties by implementing strategies regarding its properties' locations, segments, brand affiliations and operators. Specifically, brand affiliation has shown a consistently larger impact on both revenue and profit than other corporate strategies, and consequently should receive particular attention from the owner to carefully assess the brand's potential contribution before engaging in a franchise agreement. Originality/value-This research expands the strategy research in the hospitality field by linking two key strategy constructs-corporate effects and corporate strategy-together and by revealing their collective influence on hotel performance.

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Section: Conclusion and Limitationsmentioning

confidence: 99%

The role of hotel owners: the influence of corporate strategies on hotel performance

Xiao

O’Neill

Mattila

2012

International Journal of Contemporary Hospitality Management

102

View full text Add to dashboard Cite

show abstract

“…More recent evidence suggests that the use of management contracts has risen further to 55 per cent in the United States (Smith Travel Research, 2003). Beals and Denton (2005), Panvisavas and Taylor (2006), and Corgel (2007) provide further recent testimony of management contracts’ increasing popularity.…”

Section: Management Contracts and The Ffande Reserve Literature Reviewmentioning

confidence: 98%

Accounting for the furniture, fittings & equipment reserve in hotels

Turner

Guilding

2010

Accounting & Finance

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The somewhat idiosyncratic accounting procedure of maintaining reserves to fund furniture, fittings and equipment (FF&E) capital expenditure in hotels mediated by a management contract is examined. Five research objectives have been pursued: (i) ascertaining contrasting motives of owners and operators with respect to FF&E reserve accounting; (ii) determining FF&E reserve accounting approaches adopted in hotels; (iii) determining the amount assigned to FF&E reserves in hotels; (iv) determining the sufficiency of FF&E reserves in hotels; and (v) appraising the degree of ease with which hotel operators can draw on FF&E reserve funds. These objectives have been pursued through the analysis of qualitative field data as well as survey data collected in Australia and New Zealand. The study's more significant findings include the determination that, consistent with the wishes of operators, maintaining cash funded FF&E reserves is the most popular approach (particularly in small hotels). It has also been found that FF&E reserves are 40 per cent underfunded. This deficiency beckons a question over whether hotel FF&E reserve accounting serves any meaningful role. Copyright (c) 2010 The Authors. Accounting and Finance (c) 2010 AFAANZ.

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“…For example, in Thailand the hotel industry is regulated by the Alien Business Act of 1999. According to this Act, a foreign partner in an IJV is only permitted to contribute up to 49% of the total investment in the IJV (Panvisavas and Taylor, 2006). Hence, it is not possible for the foreign parent to have equal or majority ownership in a hotel joint venture in Thailand.…”

Section: Fostering the Flow Of Knowledge At An Organization-wide Levelmentioning

confidence: 98%

Practicing effective knowledge sharing in international hotel joint ventures

Magnini

2008

International Journal of Hospitality Management

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The use of management contracts by international hotel firms in Thailand

Abstract: Seeks to examine the extent to which management contracts used by international hotel firms in Thailand mirror those used in the USA

Cited by 17 publications

References 6 publications

The role of hotel owners: the influence of corporate strategies on hotel performance

The role of hotel owners: the influence of corporate strategies on hotel performance

Accounting for the furniture, fittings & equipment reserve in hotels

Practicing effective knowledge sharing in international hotel joint ventures

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