The purpose of this study is to explore corporate effects in the hotel industry from a
hotel owner’s perspective. To the best of our knowledge, this study is the first of its
kind to examine corporate effects in the context of the hospitality industry, and
consequently adds value to hospitality management research. This research expands
the strategy research in the hospitality field by linking two key strategy constructs –
corporate effects and corporate strategy together and by revealing their collective
influence on hotel performance. This study concludes that corporate effects exist in the
hotel industry. Compared with other factors such as hotel size, hotel age, price level,
and time (i.e. year), the owner is indeed the most significant factor in determining a hotel’s operating performance. Moreover, this research expands the literature on
corporate effects by examining the underlying sources of corporate effects. Study
findings indicate that corporate strategies can be effective sources of corporate effects
because a hotel owner can influence its portfolio through implementing certain
corporate strategies, while the degree of importance may vary by strategy. Specifically,
an owner’s strategic decisions regarding segment, brand, location and operator are
important factors that influence both revenue and profit.