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Financial performance assessment of branded and non-branded hotel companies. Analysis of the Portuguese case

2021Journal article Restricted access
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dc.contributor.authorMartins, Catarina Antónia
dc.contributor.authorVaz, Clara B.
dc.contributor.authorAlves, Jorge
dc.date.accessioned2021-11-17T09:03:55Z
dc.date.available2021-11-17T09:03:55Z
dc.date.issued2021
dc.description.abstractPortugal has been experiencing a continuous growth in tourism activity, with hospitality industry as one of the main tourism sectors. Therefore, the assessment of hotel companies’ performance is very important to assist decision processes. The purpose of this paper is to assess the financial performance (FP) of 570 hotel companies operating hotel units in Portugal in 2017. To explore the question of brand affiliation, a comparison was made between hotel companies with similar stars rating and market orientation. In addition, this paper intends to fill a gap in literature studying the Portuguese reality on the subject of brand affiliation. Design/methodology/approach – The present study uses a methodology based on data envelopment analysis (DEA) to assess the overall performance for each company, which further decomposed into the within-group performance and the technological gap. The performance of the hotel company is assessed through the aggregation of multiple financial indicators using the composite indicator (CI) derived from the DEA model. A bivariate analysis based on the Tobit regression to test the robustness of brand effect on FP of hotel companies (HC) was also included. Findings – The empirical results show that branded companies, on average, have significantly better overall FP than non-branded companies. On the one hand, the brand effect tends to improve the within-group FP of HCs and the brand presents a statistically significant positive effect on the FP. On the other hand, the best practices are observed in both branded and non-branded companies. Practical implications – The results of this study illustrate that, globally, the better FP of the branded companies is because of their individual relative companies’ performance and a better model of operation given by the brand effect. Brand affiliation will generally allow for a better FP and essentially a better profitability for invested equity, a higher return on sales and a higher value added per employee. Originality/value – The study provides important theoretical and practical contributions that can assist the strategic decision of the HCs in choosing to operate independently or to adopt brand affiliation. Also, it is innovative because the FP of branded and non-branded HCs is measured not using a set of individual financial ratios but through a single CI that aggregates those financial ratios, using a DEA model.pt_PT
dc.description.sponsorshipHotel companies, DEApt_PT
dc.description.versioninfo:eu-repo/semantics/publishedVersionpt_PT
dc.identifier.citationMartins, Catarina Antónia; Vaz, Clara B.; Alves, Jorge (2021). Financial performance assessment of branded and non-branded hotel companies. Analysis of the Portuguese case. International Journal of Contemporary Hospitality Management. ISSN 0959-6119. 33:10, p. 3134 - 3156pt_PT
dc.identifier.doi10.1108/IJCHM-02-2020-0149pt_PT
dc.identifier.issn0959-6119
dc.identifier.urihttp://hdl.handle.net/10198/24201
dc.language.isoengpt_PT
dc.peerreviewedyespt_PT
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/pt_PT
dc.subjectPortugalpt_PT
dc.subjectFinancial performancept_PT
dc.subjectDEA modelpt_PT
dc.subjectComposite indicatorspt_PT
dc.titleFinancial performance assessment of branded and non-branded hotel companies. Analysis of the Portuguese casept_PT
dc.typejournal article
dspace.entity.typePublication
oaire.citation.endPage23pt_PT
oaire.citation.startPage1pt_PT
oaire.citation.titleInternational Journal of Contemporary Hospitality Managementpt_PT
person.familyNameMartins
person.familyNameVaz
person.familyNameAlves
person.givenNameCatarina Antónia
person.givenNameClara B.
person.givenNameJorge
person.identifierR-001-FQC
person.identifier.ciencia-idFF1F-17F6-47AF
person.identifier.ciencia-id9611-3386-E516
person.identifier.ciencia-id2718-FF3E-8B6B
person.identifier.orcid0000-0002-7728-545X
person.identifier.orcid0000-0001-9862-6068
person.identifier.orcid0000-0002-5168-8795
person.identifier.ridF-1519-2016
person.identifier.ridW-4214-2017
person.identifier.scopus-author-id56352045500
person.identifier.scopus-author-id57197042752
rcaap.rightsrestrictedAccesspt_PT
rcaap.typearticlept_PT
relation.isAuthorOfPublication2e7f14a9-5450-40d4-bd41-1e22f9f6dcba
relation.isAuthorOfPublication34bc350c-28d9-4b06-9874-b2b0dba58d1d
relation.isAuthorOfPublication21573167-7f60-4b0c-9777-f75aa3b53025
relation.isAuthorOfPublication.latestForDiscovery21573167-7f60-4b0c-9777-f75aa3b53025

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