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Hotel As Chain Or Independent The Advantages Annotated Bibliography

Hotel as Chain or Independent The Advantages and Disadvantages of Hotels Affiliating with a Brand

Dev, Chekitan S., James R. Brown, and Zheng Zhou Kevin. "Global Brand Expansion: How to Select a Market Entry Strategy." Cornell Hotel and Restaurant Administration Quarterly 48.1 (2007): 13,27,8.

The intent of this research is to evaluate the best possible management and ownership strategy for a hotel or hospitality business to attain and keep competitive advantage. The study found that the strengths and weaknesses of specific regional markets played a far greater role in defining the overall competitive advantage of a business compared, with local ownership being a critical success factor. The study concludes that the best possible scenario is to have a local owner of the hotel capable of infusing a strong sense of customer service into the business over time. Customer service is a precursor how well a given organization culturally fits into a given country or region.

Enz, Cathy A., Linda Canina, and Daniel Palacios-marques. "The Relationship between New Venture Entry Mode and Firm Performance." International Entrepreneurship and Management Journal 9.2 (2013): 129-45.

The basis...

Controlling for exogenous variables and external conditions specific to each submarket, the study found that a branded, franchised business led to greater levels of financial performance. The franchise model was also responsible for a faster ramp of revenues in the first six months of operation and also led to a higher level of operational efficiency. The franchise operations also streamlined and made more manageable the more complex aspects of operating a hotel. What is interesting about this study is that the franchise value lasted just six months and after that, the company had comparable performance to independent hotels. The conclusion of the researchers is that brand affiliation reduces the initial risk of launching a new hotel yet over the long-term doesn't deliver a sustained competitive advantage.
Holverson, Sonja, and Frederic Revaz. "Perceptions of European Independent Hoteliers: Hard and Soft Branding Choices." International Journal of Contemporary Hospitality Management 18.5 (2006): 398-413.

The intent of this study is to evaluate the effectiveness…

Sources used in this document:
The sampling frame of this study is 1,900 U.S. hotels whose performance was analyzed between 2002 and 2003, specifically focused on the net operating income percentage, occupancy and average daily rate (ADR). Brand affiliation was not a contributing factor in explaining the variation in hotel performance, but the net operating income, regional focus and price point were. The study concentrates on net operating income (NOI) as a measure of overall hotel performance and shows that in recessionary times the budget hotels that relied on quantifiably differentiated value did the best in terms of continual occupancy rates.

Walsh, Kate, Cathy A. Enz, and Linda Canina. "The Impact of Strategic Orientation on Intellectual Capital Investments in Customer Service Firms." Journal of Service Research: JSR 10.4 (2008): 300.

This is a study of 538 hotels in the lodging industry with the orientation being on which sets of attributes most determine long-term financial success. The three core areas of elements are systems capital, customer capital and human capital. Branding was include in customer capital and showed not differentiating value across the study. Customer capital did however show a foundational effect for all segments of the market and served as a stabilizing factor in overall performance. The net effect of this is that branding doesn't differentiation in how knowledge is used in a hotel, it is an essential element in defining its identity over time however. Added to this is the role of customer service and stability of key hires in a hotel, which is critical for keeping service and professional employees engaged and motivated to perform over time.
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