Corporate finance in the hotel industry

Strategies for growth: the Marriott case

Authored by: Valentina Della Corte

The Routledge Handbook of Hospitality Management

Print publication date:  March  2014
Online publication date:  March  2014

Print ISBN: 9780415671774
eBook ISBN: 9781315814353
Adobe ISBN: 9781317804246


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Corporate finance for hotel firms can be examined and assessed with reference to the type of company (single unit hotel, hotel chain) in order to take into account the factors most relevant for investments and financing decisions. On the one hand, hotel firms often look for non-equity relationships, which allow for growth while keeping strategic, operational and financial flexibility. On the other hand, single unit hotels, often family hotels, have some difficulty in competing at a global level against major hotel chains and managing online markets. The management-ownership configurations of hotels are varied, depending on whether they are managed by their owners or by another entity that acts as a contract manager for the owners (Getz and Carlsen, 2005). In this chapter I shall identify the literature on the topic and then attempt to define the potential risks in hotel firms' development, concluding with some ratios in order to evaluate the efficiency and profitability of hotel firms.

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