Hotel Financial Performance Research Articles

The nexus between green transformational leadership and financial performance of hotels: the mediating effect of environmental management practices

PurposeThis study sought to examine the effect of green transformational leadership (GTL) on financial performance (FPef) of star-rated hotels in Addis Ababa and also delving into the mediating effect of environmental management practices (EMPs) on GTL–FPef nexus.Design/methodology/approachThe study used survey data, and analysis was done using SPSS 25, AMOS 24 and PROCESS Macro to determine the mediating effect of EMPs on the GTL–FPef nexus in hotel sector (n = 100).FindingsThe study found that the hotels under investigation have little access to green financing, lack environmental policy and strategy, perceived low stakeholders’ pressure to embrace eco-friendly practices and implemented EMPs to a lesser extent. Regression results demonstrated that GTL had a positive effect on EMPs and FPef. Furthermore, the result of a mediation test conducted using SPSS PROCESS macro revealed that the relationship between GTL and FPef is partially mediated by EMPs. Finally, one-way ANOVA result revealed that luxury hotels adopt EMPs better than budget hotels.Practical implicationsThis study provides valuable practical insights for hotel owners, managers and policy makers regarding the importance of adopting GTL style and investing in EMPs to remain environmentally responsible and ultimately improve FPef levels.Originality/valueUnlike previous studies that focused on individual-level intermediate variables to explain the indirect relationship between GTL and FPef, this study examined the mediating role of EMPs in the relationship between GTL and FPef at organizational level.

Measuring Hotel Financial and Non-Financial Performance in Thailand: The Application of Technology-Organization-Environment (TOE) Framework

Guided by the Technology-Organization-Environment (TOE) framework, the current study aims to test the impacts of organizational factors, technological factors, and environmental factors on the financial and non-financial performance (or goals) of hospitality firms. Unlike several empirical studies in the past, this study attempted to compare the effects of these factors on financial and non-financial performances. The authors proposed the contributions with clearer and more specific recommendations and a greater understanding of how managers can improve and adjust their strategic plan and implementation to achieve long-term firm performance. The data analysis was structural equation modeling. Prior to the data analysis, reliability and validity tests were conducted to certify the quality of the data. After screening the data carefully, based on 350 hospitality firms in Thailand, including 3–5-star hotels in Thailand representing all parts of the country, the results indicated that organizational factors and technological factors had significant effects on both financial and non-financial performance. The environmental factor demonstrated no significant effect on financial and non-financial performance. Moreover, for the theoretical contribution, this study provided empirical research by applying the TOE framework in the context of the hospitality industry, presenting that organizational factors and technological factors had significant impacts on the firm performance. Discussion with the past literature provided deeper insights into the findings. Research conclusions and practical recommendations were also provided.

Mobile Accounting Software and Financial Performance of Small-Scale Hotels in Mombasa, Kenya

This research explores the effects of mobile accounting software on the financial performance of Small and Medium Enterprises (SMEs) in Kenya, specifically focusing on the hotel industry. The utilization of accounting software, which includes various modules like trial balances, payroll, accounts receivable, and accounts payable, improves efficiency through task automation and error reduction. Mobile applications, accessible via platforms such as Google Play Store and Apple Store, further enhance financial processes for SME proprietors, providing instant access to financial data and aiding in precise record-keeping. The study emphasizes the categories of mobile accounting applications—bookkeeping, expense tracking, and invoice tracking—and their combined impact on financial performance. Empirical data from different nations, such as Indonesia and Germany, highlights the advantages of these apps in enhancing financial literacy and management capabilities among SME owners. Particularly in areas like Tudor Ward, Mombasa, Kenya, the awareness and utilization of mobile accounting applications exhibit promising outcomes in elevating financial performance significantly. The study concludes that integrating mobile accounting software is crucial for attaining heightened efficiency, transparency, and financial advancement for SMEs. As technology progresses, its role in bolstering the financial well-being and endurance of small enterprises will grow increasingly pivotal.

Effect of Working Capital Management Practices on Financial Performance of Hotels in Kenya: A Case of Selected Three Star Hotels in Garissa Town

Effect of Working Capital Management Practices on Financial Performance of Hotels in Kenya: A Case of Selected Three Star Hotels in Garissa Town

Analyzing financial performance of resort and hotel subsector: A case study at Saung Dolken

The COVID-19 pandemic has significantly disrupted the stability of global economic flows and threatened the business of companies in the world. The purpose of this study is to analyze the existing condition of the financial performance of Saung Dolken Resort and Hotel for the period 2018 to 2022 and benchmarking with the hotel sub-sector industry, analyze the level of potential bankruptcy (financial distress) of SDO in Indonesia during the Covid-19 period, and formulate a financial performance model. This study aims to find out what factors affect SDO's financial performance which is proxied with return on equity (ROE) based on independent variables from the Dupont analysis components, namely: ATO: asset turnover ratio, LEV: financial leverage, TaxB: tax burden, IntB: interest burden, OPM : operating profit margin, and EM : Equity Multiplier (EM) Adjustment. The study examines Saung Dolken Resort and Hotel's financial performance from 2018-2022 using descriptive analysis and Du Pont Analysis, identifying strengths and weaknesses for investors. The results show that the period before and during the co-incidence period showed a significant decrease in ROE caused by a decrease in ATO, Asset Turnover, and LEV, followed by an increase in TaxB and intB. The strategy includes profit margin optimization, asset turnover improvement, and equity multiplier adjustment.

The impact of the COVID-19 pandemic and associated risks on the financial performance of hotels

The impact of the COVID-19 pandemic and associated risks on the financial performance of hotels

Customer value creation and Moroccan hotels' performance: a multi-party and multi-phase vision

PurposeThis study examines the impact of customer value creation on hotel performance. Customer value is seen as a multi-phase and multi-party process that combines hotel and tourist perspectives while also integrating the participation of frontline employees. The study also investigates financial performance (FP) and customer-based performance (CBP).Design/methodology/approachData were collected from Morocco through multiple-informant design surveys to explore three perspectives related to three actors involved in the process, that is, the managers, the employees and the tourists. The hypotheses were tested with SmartPLS4.FindingsThe findings reveal that customer value positively and significantly impacts not only the FP of hotels but also the CBP. The results highlight a sequential relationship in which each actor drives the subsequent phase to definitively enhance the hotel's performance. The results further show significant mediation effects in the customer value sequence. Moreover, the results show a significant and positive effect of CBP on FP.Research limitations/implicationsTheoretical and managerial implications of the research are discussed and future important researches are drawn from the study limitations.Practical implicationsManagers must be aware that frontline employees and guests are crucial for creating customer value, which enables to improve their performance. The results highlight that hotels should motivate and involve frontline employees in value propositions (VP) development. Furthermore, the guests are the final arbiters of value who drive hotels' performance. Moreover, for additional FP, managers are required both to deliver superior value and create loyal customers.Originality/valueThis study mostly confirms previous findings and highlights a sequential relationship among three phases involving three actors of customer value. However, it reveals more reasonable and robust results in the mediation effect of the value offering (VO) between the VP and the perceived value-in-use (PVI). This study is also the first to provide evidence on the mediation effect of the PVI between the VO and the CBP.

Effect of Corporate Social Responsibility on Financial Performance of Star-Rated Hotels in Uasin Gishu County, Kenya

Despite the hotel industry playing a vital role in supporting the economy, it has like other business enterprises faced internal and external forces that threatened its competitiveness and sustainability. The purpose of this study was to establish the effect of corporate social responsibility on the financial performance of star-rated hotels in Uasin Gishu County, Kenya. The primary research question that guided the study was: What impact does corporate social responsibility have on the financial performance of star-rated hotels in Uasin Gishu County? The Freeman Stakeholder Theory served as the study’s main framework. The study applied a descriptive survey design. The study’s population of interest comprised 116 respondents who work for star-rated hotels in Uasin Gishu County. The sample size formula for this study was based on Yamane’s formula, where a sample size of 89 respondents was selected by use of stratified random sampling techniques. The primary techniques for gathering data for the study were a questionnaire and document analysis. To determine the reliability of each questionnaire segment, the researcher employed Cronbach’s alpha coefficient and expert judgment to test the content validity of each section. The data gathered was analysed using descriptive methods. The study findings indicated that corporate social responsibility had a strong influence on the financial performance of star-rated hotels in Uasin Gishu County, as the respondents agreed that CSR impacted hotel financial performance. Environmental improvement had the highest score of influence. As a result, the study recommends that hotels engage in more corporate social responsibility activities than they currently do, as this has been determined to result in a positive strategic positioning that is long-lasting. This study brings to the awareness that strategic reconfiguration and alignment of corporate social responsibility practices to organisation policies are key and thus are recommended in enhancing brand awareness

Linking green supply chain management practices and behavioural intentions: the mediating role of customer satisfaction

PurposeThe present research investigates the effects of green supply chain management (GSCM) practices on customer behavioural intentions (e.g. word of mouth [WOM], willingness to pay [WTP] and revisit intention [RI]) and the mediating role of customer satisfaction (CS) in the hospitality industry in Bangladesh.Design/methodology/approachThe authors applied a convenience sampling approach to distribute questionnaires and collect opinions from 404 customers who stayed in Bangladesh's five- and four-star hotels. SmartPLS was applied to examine the proposed hypothesised model.FindingsGSCM practices have positive and significant impacts on CS and behavioural intentions of customers' WOM, WTP and RI. Additionally, CS mediates the association between GSCM practices and three behavioural intentions.Practical implicationsTo boost their hotel's financial performance, hoteliers should allocate more resources to improving environmental sustainability practices in supply chain management.Originality/valueThis study's novel contribution to the literature rests in the findings regarding the mediating effect of CS. This adds value to the theory of planned behaviour. Another unique contribution of this study is that it combines three behavioural intentions (willingness to pay, RI and WOM).

Etičke dileme kao posledica uticaj primene upravljanja prihodima na ponašanje hotelskih gostiju

Hotel revenue management brings significant financial benefits, but on the other hand, it can lead to a deterioration in guest perceived fairness. Certain pricing manipulations, dynamic price optimization, and changes in reservation terms aim to maximize a hotel's financial performance. However, such practices can negatively impact the non-financial aspects of customer relationship management, such as perceived value, customer satisfaction, and loyalty. Price discrimination as one of the revenue management techniques is often closely linked to a hotel guest's perceived fairness. Additionally, inventory management techniques like capacity constraints and overbooking can have adverse effects on guest satisfaction. Hotel managers are aware of the risks associated with guest dissatisfaction and, therefore, seek to identify and define strategies to prevent and mitigate their negative consequences. The goal of this paper is to gain insight into the potential consequences of implementing revenue management techniques and emphasize the need for defining preventive measures and plans to reduce and eliminate guest dissatisfaction.

Examining the effects of hotel reputation in the relationship between environmental performance and hotel financial performance

Studies that have examined the relationship between environmental performance and the financial performance of hotels are inconclusive because some have found positive relationships and others negative links. For this reason, literature demands new research to expand knowledge about the variables that could have a mediating or moderating role in this relationship. During this paper, three models have been contrasted using the Partial Least Squares (PLS) methodology, which is particularly suitable to test the relationships between environmental performance and financial performance in the hotel industry. This is the first study to provide an integrated model involving environmental performance, financial performance, and the moderate mediation offered by reputation in the hotel industry. The results suggest that hotels that make efforts towards environmental performance achieve better financial performance and that the hotel's reputation plays a decisive moderating role in this relationship.

Impact of service quality and environmental practices on hotel companies: An empirical approach

Interest in sustainability and service quality practices in hospitality is increasing in professional and academic communities. Most of the existing literature about hotel companies is focused on a single practice at a time and does not combine service quality and environmental practices in the same study. Drawing upon the resource-based view theory of the firm, this study investigates the effects of service quality and environmental practices on the competitiveness and financial performance of hotels. The research population consisted of 148 hotel managers from Catalonia. The impacts between the dimensions were analysed using structural equation modelling. The investigation revealed that there is a positive impact on the financial performance and competitiveness of the hotels that have adopted these practices. A correlation between service quality and environmental practices was also demonstrated. The implications and recommendations stemming from the research are exposed.

Transforming Brand Identity to Hotel Performance: The Moderating Effect of Social Capital

Hotel performance is one of the core concerns for managers and investors. However, a clear pathway from investment in branding to hotel performance is scarce. To fill this research gap, the study aims to explore the effects of brand identity, physical facility quality, and brand equity on hotel performance; and to examine the moderating effect of social capital in the brand–performance transformation model in both international and domestic brand hotel settings. Data were collected from 1,201 hotel managers in China, with 757 from international and 444 from domestic brand hotels. Theoretically, this study represents a first attempt to reveal the indirect roles that social capital plays in the hotel financial performance formation. The identified brand–performance pathway also provides implications for hotel practitioners regarding how to boost desirable hotel performance through both internal and external resources.

Turning non-financial performance measurements into financial performance: The usefulness of front-office staff incentive systems in hotels

This paper investigates causal relationships between management control system (MCS) practices and performance in French Riviera hotels. The current literature presents mixed and contradictory findings regarding the relationships between delegation, performance measurements in incentive systems, and performance, both non-financial and financial. We argue that taking complexity into account when studying such relationships is hence of prime importance. In addition, our analytical method relies on the state of the art, relying on the tandem use of PLS-SEM and fsQCA. Moreover, to the best of our knowledge, it is one of the first to extend a prior PLS-SEM analysis by a partial least-squares prediction-oriented segmentation (POS). Our findings highlight some very different pathways to hotel financial performance and the influence of the hotel customer orientation in this context. Those findings contribute to the literature on performance and the hospitality industry and highlights managerial implications related to the design of effective MCS practices.

Corporate social responsibility and financial performance: A study of the tourism industry in Sri Lanka

Sri Lanka is under a myth that the fall of tourism is due to the Easter Sunday attack in 2019 followed by the COVID-19 pandemic in 2020. In contrast, this study argues the fall started even before those shocks incorporating corporate social responsibility (CSR) and financial performance (FP) in the tourism industry. A stratified random sample of 10 hotels was selected, and their annual reports were utilized in gathering data. An abductive approach was employed where content analysis was carried out to find out the CSR words, then thematic analysis was conducted to grasp the important themes of CSR, and then the Nila unit method was adopted in converting the themes to measurable CSR. After converting CSR measurable, the study continued with descriptive and correlation analysis. The study found a slight but incremental behaviour in CSR disclosure yet a significant slump in FP of hotels. The study is significant since it argues that the present economic crisis is not due to the Easter Sunday attack and COVID-19 pandemic, but it emerged even before the said shocks.

Does gender diversity matter to hotel financial performance?

This study examines the effects of executive gender diversity (EGD) and board gender diversity (BGD) on hotel financial performance in China based on the framework of the gender role, agency, and resource dependence theories. This research documents a negative effect of EGD and no significant effect of BGD on hotel financial performance. Moreover, the effect of EGD on hotel financial performance captured by return on equity (ROE) exhibits a U-shaped curve, with the profitability measure bottoming out at 21%. Our analysis also shows that a critical mass of 40% of EGD serves as a positive moderator for the EGD-ROE relationship. Beyond this point, gender-balanced executive groups evade negatives rooted in the gender role theory, enjoy positives drawn in the agency and resource dependence theories, and generate superior financial performance compared to all-male executive groups. This research offers important implications for human resource management and policy and regulation formulation.

Corporate social responsibility and hotel financial performance

ABSTRACT This paper assesses the causal relationship between corporate social responsibility (CSR) activities and corporate financial performance using a sample of 43 hotels for the period 2007–2018. The research employs a dynamic panel vector autoregressive model (PVAR) which brings more analytical insights in the CSR- Financial Performance modeling. The results show that CSR has a positive and significant impact on corporate financial performance and lend support to the theoretical underpinnings with respect to the CSR and financial performance nexus. The results suggest that growth opportunities mediate the relationship between CSR and performance. High-growth hotels will have better opportunities to engage in CSR activities which in turn positively impact on their performance. Practically, our findings suggest that CSR is an important mechanism to improve the efficiency of organizations.

Mediation Role of Revenue Management Practices on the Linkage between Hotel Determinants and Financial Performance of Hotels in Kenya

The study aimed at investigating the mediation role of revenue management (RM) practices on the linkage between the internal and external hotel determinants and the financial performance of hotels in Kenya. The study used a quantitative approach adopted a cross-sectional survey research design. The study sampled 225 revenue managers from all-star-rated hotels in Kenya. Data were collected by use of a questionnaire. The findings revealed that, there was evidence of RM practice in hotels (M = 2.44, SD = 0.671) and that the application of RM has some impacts on the financial performance of hotels (M = 3.35, SD = 1.05). Further, the finding revealed a direct relationship between internal and external hotel determinants and financial performance of hotels (R = 0.457, Sig.

Impact of Employee Meals on Employee Satisfaction and Hotel Financial Performance: An Experimental Study

Impact of Employee Meals on Employee Satisfaction and Hotel Financial Performance: An Experimental Study

KINERJA KEUANGAN PADA HOTEL MILIK XYZ DENGAN PENGGUNAAN OPERATOR HOTEL

The purpose of this study is to analyze the financial performance of XYZ’s hotels by using hotel operators. XYZ’s hotels for the last nine years have been managed by AHH to increase the productivity of hotel performance. Historical financial performance show that the three XYZ hotels did not achieve the target over the last five years. Meanwhile, until August 2019 XYZ’s hotels showed a decrease in income above 5% and net profit after tax above 40%. To analyze hotel financial performance used financial ratios, company value added (EVA), and dividend payout ratio. Next to analyze the differences in the financial performance of XYZ hotels between before and after managed by hotel operators used the t-independent test method. The results of the analysis of financial performance show that MHH and SPH had good hotel financial performance during the study period, while BIH showed a declined trend in financial performance with negative EVA. The results of the t-independent test research showed that AHH as a hotel operator failed to improve the hotel's financial performance and did not provide added value to the three hotels owned by XYZ. Keywords: financial performance, economic value added, dividend payout ratio, hotel management, hospitality industry