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Do independent hotels benefit from the presence of branded ones?

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  • Yang, Yang
  • Mao, Zhenxing (Eddie)

Abstract

This paper investigates the performance changes of independent hotels due to the presence of nearby branded hotels in Texas. The moderating effects of these performance spillovers are also examined. Evidence from empirical analysis shows the existence and moderate significance of spillover effects from branded to independent hotels. Further analyses indicate that younger and higher-class independent hotels benefit significantly from performance spillovers from branded hotels. Higher-class branded hotels generate the vast majority of spillovers for their independent peers in the vicinity. Moreover, between the two types of branded hotels, franchised hotels generate the vast majority of spillovers, whereas contributions from chain-operated hotels are negligible. Suggestions are provided to independent hotels on how to improve their performance through spillovers from branded hotels.

Suggested Citation

  • Yang, Yang & Mao, Zhenxing (Eddie), 2017. "Do independent hotels benefit from the presence of branded ones?," Journal of Business Research, Elsevier, vol. 76(C), pages 108-117.
    • Handle: RePEc:eee:jbrese:v:76:y:2017:i:c:p:108-117
    DOI: 10.1016/j.jbusres.2017.03.014
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    Cited by:

    1. Yang Yang & Nan Hua, 2022. "Does hotel class moderate the impact of crime on operating performance?," Tourism Economics, , vol. 28(1), pages 44-61, February.
    2. Shih‐Chuan Lin & Yoo Ri Kim, 2021. "Heterogeneous effects of hotel ownership structure changes on localized market competition using multilevel mixed‐effect analyses," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 808-820, June.
    3. Yang, Yang & Mao, Zhenxing, 2020. "Location advantages of lodging properties: A comparison between hotels and Airbnb units in an urban environment," Annals of Tourism Research, Elsevier, vol. 81(C).
    4. Kretinin, Andrey & Anokhin, Sergey & Wincent, Joakim, 2020. "Exploring the antecedents of franchise internationalization," Journal of Business Research, Elsevier, vol. 112(C), pages 422-430.

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