Abstract
This paper studies the financial determinants of debt of Portuguese hotel companies using the main indicators suggested by the Trade-Off and the Pecking Order theories. The main objective of this study was to analyse the determinants that most contribute to the debt of Portuguese companies in the hotel industry. The study also aimed to understand the impact of crisis periods on the debt. Since data collected refers to the period between 2005 and 2020 it also analyses the impact of the 2008 financial crisis and, more recently, the global pandemic COVID-19. The results show that debt is negatively associated with profitability and age, and is positively associated with size, growth opportunities and tangibility. These results are in line with the Pecking Order theory, ranking the choice of financing methods. We can also conclude that the way hotels finance their assets will affect their level of debt. We also evidence that debt of Portuguese hotels companies increases in periods of crisis.
 Keywords: Debt; Hotels companies; Crisis; Capital Structure
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