Type of Submission

Invited Article


This study investigates the relationships among the amount of money, the number of target hotels acquired in acquisitions, and financial performance of the acquirer hotel groups during the post- acquisition period. Results of a regression analysis revealed that the extent of increase in both EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and Operating Efficiency Ratio of acquirer hotel groups were more dependent on the number of target hotels acquired by the acquirer hotel groups than on the amount of money invested in the acquisitions. The findings of this study indicate that more target hotels acquired by acquirer hotel groups resulted in both lower increased percentage of annual EBITDA and a higher increased percentage of annual Operating Efficiency Ratio. The size of acquisitions has significant influence on acquirer hotel groups’ financial perfor- mance, the directions of which vary between different indicators of corporate financial performance.