Investing in the hospitality industry during crisis scenario: an empirical investigation on hotel listed companies

The hotel industry is significantly heterogeneous, and each brand and location may have different performances based on the tourism demand and the supply of similar destinations for the world's market. International crises have an impact on the tourism demand and on the performance of hospitality companies, but the effect is different on the basis of the type of crisis analysis (financial, health, etc...). After the pandemic, shareholders are more worried about the risk of investing in corporations that enter the hospitality industry, even if the probability of similar events in the near future is remote. The paper focuses on the shareholders’ point of view and it evaluates the risk of an investment strategy in hotel-listed companies by considering companies operating in different areas and sectors (business, leisure, etc...) for the time horizon 2007-2023. Results highlight differences in the risk exposure on the basis of the type of hotel selected and point out the benefits related to a diversification strategy for reducing the risk of losses, especially in a crisis scenario.