Internationalization and financial health in the US hotel industry

• Seoki Lee ^[1] ; Yoon Koh ^[2] ; Qu Xiao ^[3]
  1. [1] Pennsylvania State University

     Pennsylvania State University

     Borough of State College, Estados Unidos

     
  2. [2] University of Houston

     University of Houston

     Estados Unidos

     
  3. [3] Hong Kong Polytechnic University

     Hong Kong Polytechnic University

     RAE de Hong Kong (China)

     

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• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 20, Nº. 1, 2014, págs. 87-105
• Idioma: inglés
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• Resumen

  • This study examines two main hypotheses regarding the internationalization and financial health of publicly traded US hotels from 1990 to 2010. First, the study hypothesizes that international US hotels are financially healthier than domestic US hotels. The findings support the hypothesis after controlling for other potential confounding factors: a firm's growth opportunity, profitability, size, leverage, capital intensity and economic conditions. Next, the study tests the second hypothesis, that international US hotels face a great challenge in terms of their financial health as they enter foreign markets due to the many unknown factors in such international settings. However, it is expected that the internationalization strategy will gradually provide more benefits as the firm increases its degree of internationalization, and thus that benefits will eventually outweigh costs, leading to a U-shaped relationship. The study's findings support this curvilinear U-shaped relationship within the dataset of internationally operating US hotels.