Financial performance of spanish hotels during the crisis

Abstract

[EN] Purpose this paper studies the relationship between category, size and chain affiliation of hotels and their financial performance. Design/Methodology/Approach This investigation used ANOVA analysis of financial data collected from the SABI database. The target population was Spanish hotels, and the sample used for the study was the hotels of the Alicante region. Findings In times of the crisis, financial figures of hotel companies are generally very low, with the negative average profits in most cases. Category, size and chain affiliation do not completely explain the differences between hotels financial performance. Only revenue has a significant relationship with all of these three variables. Among other financial indicators, also revenue per room is influenced by category, while gross profits per room and net profits per room are influenced both by category and chain affiliation. Research limitations/implications The study was carried out on the sample of hotels of only one region of Spain, Alicante, and not all the Spanish hotels. Furthermore, it is based on the data obtained from secondary sources of information. Originality/value Though there are studies that have already analysed the influence of category, size and chain affiliation on the financial performance of Spanish hotels, 1- and 2-star hotels were excluded from them. Furthermore, this paper also includes the effect of the global financial crisis on the Spanish hotel industry.