An examination of US hotel segment strategy: diversified, concentrated of balanced?

• Seoki Lee ^[1] ; Kyung Ho Kang ^[2] ; Qu Xiao ^[3]
  1. [1] Temple University

     Temple University

     City of Philadelphia, Estados Unidos

     
  2. [2] Hong Kong Polytechnic University

     Hong Kong Polytechnic University

     RAE de Hong Kong (China)

     
  3. [3] Kyung Hee University

     Kyung Hee University

     Corea del Sur

     

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• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 17, Nº. 6, 2011, págs. 1257-1274
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • Segment diversification is a common strategy applied by hotel companies. According to previous research on the modern portfolio theory, a company can reduce risks and thus increase its value with more diversified operations. Such reasoning can certainly apply to the hotel industry in terms of its segment strategy. However, the findings are inconclusive. In particular, other literature argues for more concentrated rather than diversified operations. This study therefore examines the impacts of segment diversification on companies� risk-adjusted performances among publicly traded US hotels. The results suggest that a moderate segment diversification strategy maximizes a company�s risk-adjusted performance.