Internationalization and Financial Health in the US Hotel Industry
Abstract
This study examines two main hypotheses regarding the internationalization and financial health of publicly traded US hotels from 1990 to 2010. First, the study hypothesizes that international US hotels are financially healthier than domestic US hotels. The findings support the hypothesis after controlling for other potential confounding factors: a firm's growth opportunity, profitability, size, leverage, capital intensity and economic conditions. Next, the study tests the second hypothesis, that international US hotels face a great challenge in terms of their financial health as they enter foreign markets due to the many unknown factors in such international settings. However, it is expected that the internationalization strategy will gradually provide more benefits as the firm increases its degree of internationalization, and thus that benefits will eventually outweigh costs, leading to a U-shaped relationship. The study's findings support this curvilinear U-shaped relationship within the dataset of internationally operating US hotels.
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There is a U-shaped relationship between internationalization and performance among hotel chains that have internationalized.
“Thus, they document a U-shaped relationship between internationalization and performance.”
From A systematic review of international franchising (2021) · cites this paper as Lee et al., 2014
Internationalization has a positive effect on the financial health of hotels.
“They infer that internationalization has a positive effect on the financial health of hotels.”
From A systematic review of international franchising (2021) · cites this paper as Lee et al., 2014
The financial performance of international US hotels is better than that of hotels that have only domestic operations.
“In their study of the financial performance of international and domestic US hotels, Lee et al. (2014) document that the financial performance of international US hotels is better than that of hotels that have only domestic operations.”
From A systematic review of international franchising (2021) · cites this paper as Lee et al., 2014
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- Authors
- Lee, S., Koh, Y., & Xiao, Q.
- Affiliations
- Pennsylvania State University (US)
- University of Houston (US)
- Hong Kong Polytechnic University (HK)
- Corresponding author
- Lee, Seoki
- Koh, Yoon
- Xiao, Qu
- Venue
- Tourism Economics
- Publisher
- SAGE Publications
- Published
- 2014-02
- Volume
- 20
- Issue
- 1
- Pages
- 87-105
- ISSN
- 1354-8166 (ISSN-L)
- 2044-0375
- OpenAlex
- W2086683107
- Cited by
- 10
- References
- 57
- Citations by year
- 2026: 1 · 2024: 3 · 2023: 1 · 2020: 2 · 2019: 2 · 2016: 1
- FWCI
- 1.02
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Tourism Economics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › International Business and FDI
- Social Sciences › Business, Management and Accounting › Accounting › Corporate Finance and Governance
- Social Sciences › Business, Management and Accounting › Accounting › Financial Analysis and Corporate Governance
- Keywords
- internationalization, hotel industry, financial well-being, foreign market entry, U-shaped relationship, internationalization strategy, firm performance
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