Journal Issue: Journal of Hospitality Financial Management: Volume 22, Issue 2
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2014-13-12
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2014- A YEAR IN REVIEW FOR HOTEL FIRMS
(2014-12-13) Sheel, Atul
THE INFLUENCE OF CUSTOMER PERCEPTIONS ON FINANCIAL PERFORMANCE IN HOSPITALITY ORGANIZATIONS: AN EMPIRICAL STUDY
(2014-12-13) Nair, Girish K.
The purpose of this study is to develop and empirically test a model that examines the relationship between customer perceptions and financial performance in hospitality organizations. A survey has been undertaken in hospitality organizations with a sample size of 387 based on simple random sampling. Meta-analysis of literature was the basis for developing the metric that included the variables constituting the hypothetical research model. The tool used for data analysis was structural equation modeling with partial least square technique. Results indicate that both the product- and nonproduct-related attributes have positive and significant influence on symbolic benefits and experiential benefits, which in turn positively influence customer satisfaction. Further, customer satisfaction positively influences financial services. The findings suggest that financial service managers should consider treating customers as partners in services on their quest to develop successful new services in hospitality organizations. Reciprocal behavior will foster a positive atmosphere, remove barriers arising from risk, and enable relationships to progress, ultimately improving customer satisfaction and financial performance. There are not many models available that deal with the antecedents of customer satisfaction (in terms of the product- and non-product related attributes and the functional, symbolic, and experiential benefits) and financial performance. This study adds to the body of knowledge in this emerging area.
FACTORS INFLUENCING FIXED ASSETS INVESTMENTS IN THE U.S. HOSPITALITY INDUSTRIES
(2014-12-13) Moon, Joohno; Sharma, Amit
Although investments in fixed assets are important aspects of financial management, there are few studies focusing on this aspect of corporate finance in the hospitality literature. This study investigates factors that affect investment in fixed assets in both the lodging and restaurant industries. Investment in fixed assets for lodging firms was found to be negatively influenced by financial leverage; however, liquidity ratio had a positive relationship to investments. Particularly in the restaurant industry, financial leverage and firm size showed a negative relationship to investment in fixed assets, whereas profitability and liquidity ratios had a significant positive relationship with restaurant investment in fixed assets. Results of this study reemphasize that restaurants, although more profitable than lodging businesses, rely mostly on internal cash flows for their investments.
FACTORS THAT IMPACT UNSYSTEMATIC RISK IN THE U.S. RESTAURANT INDUSTRY
(2014-12-13) Dalbor, Michael; Hua, Nan; Andrew, William
The purpose of this research is to explore the relationship between restaurant management factors and the unsystematic risk portion of restaurant stock returns. The riskiness of the restaurant business has been brought to the forefront of popular culture through a number of reality television shows. Although the riskiness of the business overall has been exaggerated, these shows highlight the importance of the ability of the ownermanager. We examine three critical areas of restaurant management, including financial management, operations management, and firm size, and find that all are significantly related to a firm’s unsystematic risk.
SETTLING FOR LESS: THE INSTITUTIONALIZATION OF THE HOTEL FEASIBILITY STUDY
(2014-12-13) Hodari, Demaian; Samson, David
Hotel feasibility studies play an important role in the hotel development process as hotel developers, lenders, and operators all require an analysis of a hotel’s projected operating performance and the ensuing financial returns. Such studies are rarely effective, however, at predicting future performance. Although scholars and practitioners have repeatedly recommended numerous improvements to correct their methodological weaknesses and improve their accuracy, few changes have been incorporated. This study’s purpose was to identify the underlying reasons why the methodological improvements identified in previous studies have not been undertaken. The research employed a qualitative methodology based on interviews with leading hotel owners, developers, lenders, and consultants. The key findings of the research demonstrated that the way in which feasibility studies are used, the value the stakeholders place on them, cost and time constraints, and the limited incentives and accountability associated with improving underlying assumptions and methodologies are key drivers behind the marginalization and stagnant evolution of the hotel feasibility study.