IDEAS home Printed from https://ideas.repec.org/a/ids/ijbpma/v27y2026i2p139-164.html

Predicting the financial distress of Indian hotels: an empirical analysis using Altman scores

Author

Listed:
  • Ajay Kumar Patel
  • Swati Sharma
  • Shikha Jalota

Abstract

The purpose of this paper is to assess the financial distress of Indian hotels by using Altman scores (Zo, Zs, and Zem). Further, it also endeavours to identify and suggest the Altman model and variables significant in assessing the financial distress for the hotel industry. The prediction models developed by Edward Altman, i.e., Z scores are applied to analyse possible financial distress conditions for hotels in India. The logistic panel regression model is applied to identify Altman model and variables significant in evaluating the financial distress of hotels. The findings suggest that more than 50% of hotels studied are under distressed condition as per all Altman's model, i.e., Zo, Zem and Zs scores. The Altman financial distress score results were similar to each other and also significantly similar to results identified by key financial indicators. The result revealed that all Altman models were significant, but the Zem model, for non-manufacturing firms in an emerging economy, had the highest number of significant variables.

Suggested Citation

  • Ajay Kumar Patel & Swati Sharma & Shikha Jalota, 2026. "Predicting the financial distress of Indian hotels: an empirical analysis using Altman scores," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 27(2), pages 139-164.
    • Handle: RePEc:ids:ijbpma:v:27:y:2026:i:2:p:139-164
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=152306
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbpma:v:27:y:2026:i:2:p:139-164. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=3 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.