Type of Submission

Refereed Article


Investment and financing aspects of club houses remains understudied in hospitality literature. Clubs, while most are nonprofit organizations, operate under similar principles as do investor-owned organizations. To maximize social benefits for their ‘owners’ clubs must undertake investments effectively to ensure provision of quality products and services. This paper analyzes renovation investments in club houses using a combination of continuous and discrete regression processes. Key findings suggest that renovation expenses of the sample were influenced more by the amount of secure and unsecured loan than by the equity financing of such investments. Renovation investments were also associated with higher sales turnover and with a smaller link to return on assets. The size of club membership was found to be the predominant characteristics associated with the size of renovation expenses.