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Abstract

Performance measures, such as occupancy percentage and average daily rate, are critical statistics utilized by business strategists across the lodging industry. Approximately one-third of the population in a state-wide sample of lodging properties was utilized in an analysis of selected factors affecting operating performance. Polynomial and interactive regression were incorporated in separate analyses, wherein researchers evaluated main and interactive effects of property size and brand affiliation on occupancy and average daily rate. Independent properties were found to have significantly higher average daily rates than brand-affiliated properties regardless of their size. The interaction effect of brand affiliation and property size was marginally significant on the dependent variable occupancy. Sensitivity analyses of the results were performed on a reduced set of properties, using revenue per available room as a surrogate for performance.

Keywords

lodging performance brand affiliation business-level strategy

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Brand Affiliation and Property Size Effects on Measures of Performance in Lodging Properties

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