This research supports previous research suggesting that corporate strategies are part
of total corporate effects (Bowman and Helfat, 2001). Specifically, in the hotel industry, a
non-operating hotel owner can choose strategies regarding: at which location(s) to possess
a property/properties; which type(s) of hotels to possess; what brand(s) to affiliate with;
and which operator(s) will manage its property/properties. The relative importance of
these strategies on hotel performance is assessed in this research. Because hotel segment
is defined by STR based on a hotel brand’s system-wide ADR and consequently is
directly linked to RevPAR, its significant prediction power on RevPAR is not surprising.
In addition, the importance of location has been recognized for a long time in the hotel
industry. Particularly, from a hotel owner’s viewpoint, it is suggested that a hotel
investment is only as good as its local market, because the revenues of a hotel are highly
correlated to the economy of the local market (Corgel, 2002).