Promotions are frequently deployed by firms in the tourism and hospitality industry as a way to boost occupancy in times when excess capacity may be anticipated. While promotions may indeed augment revenues and other accounting measures commonly used in by hotels to assess performance, the impact of these sales tools on finance-based indicators remains largely unexplored. Exploiting a rich dataset of consisting of over 300 corporate level promotions by the hotels spanning nearly two decades, this study shows that promotions can be detrimental to market value of hospitality and tourism firms. This erosion of the market value is even more acute for promotions with a tangible monetary component, such as price discounts. Moderating and mediating effects of other promotional actions are identified.