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Hotel management contract: impact on performance in the Korean hotel sector

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  • Soo Y. Kim

Abstract

This study investigates the influence of hotel management contract on the performance of super-deluxe hotels in Korea and identifies how the 1996--1997 tourism recessions affected the relationship between management contract and the performance of the hotels. The Mann--Whitney U test, stepwise logistic regression, and multivariate analysis of variance statistical analyses indicate that management contract is positively related to the performance of the hotels, and the 1996--1997 tourism recessions caused the management contract--performance link to vary. From the industry application perspective, this study provides hotel owners with empirical information relating to: (1) a means to assess the performance of hotels under management contract and (2) a decision rule to apply an appropriately matched operating arrangement to an environmental state for maximum performance. The results obtained present an invaluable analysis tool for all owners involved in charting a hotel's future.

Suggested Citation

  • Soo Y. Kim, 2008. "Hotel management contract: impact on performance in the Korean hotel sector," The Service Industries Journal, Taylor & Francis Journals, vol. 28(5), pages 701-718, June.
    • Handle: RePEc:taf:servic:v:28:y:2008:i:5:p:701-718
    DOI: 10.1080/02642060801988332
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    Cited by:

    1. Soo Young Kim, 2018. "Predicting hospitality financial distress with ensemble models: the case of US hotels, restaurants, and amusement and recreation," Service Business, Springer;Pan-Pacific Business Association, vol. 12(3), pages 483-503, September.
    2. Kim, Soo Y. & Upneja, Arun, 2014. "Predicting restaurant financial distress using decision tree and AdaBoosted decision tree models," Economic Modelling, Elsevier, vol. 36(C), pages 354-362.
    3. Yang, Yang & Mao, Zhenxing (Eddie), 2017. "Do independent hotels benefit from the presence of branded ones?," Journal of Business Research, Elsevier, vol. 76(C), pages 108-117.

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