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Selecting Profitable Hotel Sites at La Quinta Motor Inns

Author

Listed:
  • Sheryl E. Kimes

    (School of Hotel Administration, Cornell University, Ithaca, New York 14853)

  • James A. Fitzsimmons

    (Department of Management, University of Texas, Austin, Texas 78712)

Abstract

Selecting a good site plays a crucial role in the success of a hotel, and as competition intensifies in the lodging industry, it has become increasingly important. The success of a site is based on competitive, demographic, physical, market awareness, and demand generator variables. We built a regression model for La Quinta Motor Inns, a mid-sized hotel chain headquartered in San Antonio, Texas, that predicted profitability for sites under consideration. We validated the regression model on new data and incorporated it into a spreadsheet decision model that management uses for selecting sites. The model minimizes the risk of picking an unprofitable site.

Suggested Citation

  • Sheryl E. Kimes & James A. Fitzsimmons, 1990. "Selecting Profitable Hotel Sites at La Quinta Motor Inns," Interfaces, INFORMS, vol. 20(2), pages 12-20, April.
    • Handle: RePEc:inm:orinte:v:20:y:1990:i:2:p:12-20
    DOI: 10.1287/inte.20.2.12
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    Cited by:

    1. Yan Hong & Gangwei Cai & Zhoujin Mo & Weijun Gao & Lei Xu & Yuanxing Jiang & Jinming Jiang, 2020. "The Impact of COVID-19 on Tourist Satisfaction with B&B in Zhejiang, China: An Importance–Performance Analysis," IJERPH, MDPI, vol. 17(10), pages 1-19, May.
    2. Prashant Das & Patrick Smith & Paul Gallimore, 2018. "Pricing Extreme Attributes in Commercial Real Estate: the Case of Hotel Transactions," The Journal of Real Estate Finance and Economics, Springer, vol. 57(2), pages 264-296, August.
    3. Anna-Liisa Lindholm & Karen M. Gibler & Kari I. Levainen, 2006. "Modelling the Value Adding Attributes of Real Estate to the Wealth Maximization of the Firm," Journal of Real Estate Research, American Real Estate Society, vol. 28(4), pages 445-476.
    4. Wright, Christine M. & Mechling, George, 2002. "The importance of operations management problems in service organizations," Omega, Elsevier, vol. 30(2), pages 77-87, April.
    5. Azadeh, A. & Ghaderi, S.F. & Nasrollahi, M.R., 2011. "Location optimization of wind plants in Iran by an integrated hierarchical Data Envelopment Analysis," Renewable Energy, Elsevier, vol. 36(5), pages 1621-1631.
    6. ReVelle, C. S. & Eiselt, H. A., 2005. "Location analysis: A synthesis and survey," European Journal of Operational Research, Elsevier, vol. 165(1), pages 1-19, August.
    7. Alexander Kirillov & Vladimir Tselin, 2015. "Model for Building a Distribution Network Based on the Multivariate Analysis of the Industrial and Logistical Potential of Regions," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 336-345.
    8. Amini, M. Mehdi & Retzlaff-Roberts, Donna & Bienstock, Carol C., 2005. "Designing a reverse logistics operation for short cycle time repair services," International Journal of Production Economics, Elsevier, vol. 96(3), pages 367-380, June.
    9. Azadeh, A. & Ghaderi, S.F. & Maghsoudi, A., 2008. "Location optimization of solar plants by an integrated hierarchical DEA PCA approach," Energy Policy, Elsevier, vol. 36(10), pages 3993-4004, October.
    10. Ozgur Turetken, 2008. "Is your back-up IT infrastructure in a safe location?," Information Systems Frontiers, Springer, vol. 10(3), pages 375-383, July.

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