Corporate Governance and Performance in Hospitality Industries
Summary
Corporate governance in the hospitality sector encompasses the systems, principles and processes by which firms are directed and controlled. Robust governance frameworks align the interests of shareholders, boards and management, thereby mitigating agency risks and enhancing strategic decision-making. In hospitality, where consumer trust, brand reputation and capital intensity intersect, governance mechanisms such as board composition, ownership structure and executive incentives play a pivotal role in financial stability and operational resilience. The interplay between governance and performance is evident in metrics ranging from profitability and return volatility to non-financial indicators such as service quality and sustainability credentials. Globalisation and technological disruption have further raised the stakes for governance: firms that adopt transparent disclosure practices, stakeholder-oriented policies and dynamic oversight tend to secure more favourable financing terms, attract conscientious investors and sustain long-term growth. Moreover, the shift towards asset-light and fee-oriented models highlights the importance of governance in orchestrating complex franchise networks, optimising asset utilisation and preserving brand integrity across diverse jurisdictions. In sum, effective governance underpins competitive advantage in a rapidly evolving hospitality landscape, informing risk management, corporate culture and value creation for a broad spectrum of stakeholders.
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Corporate Governance and Performance in Hospitality Industries publication trend
The graph below shows the total number of articles in corporate governance and performance in hospitality industries across all publications each year (not limited to Nature Index journals).
Technical terms
Corporate governance: The system of rules, practices and processes by which a company is directed and controlled, balancing interests among stakeholders.
Agency theory: A framework analysing conflicts between principals (owners) and agents (managers) and mechanisms to align their interests.
Asset-light strategy: A business model in which a firm minimises property ownership, focusing on management contracts and franchising to reduce capital expenditure.
Fee-oriented strategy: A model that emphasises generating revenue through management fees, royalties and service charges rather than direct asset ownership.
Revenue per available room (RevPAR): A performance metric calculated by multiplying average daily rate by occupancy rate, reflecting room revenue efficiency.
References
- Fee-Oriented Strategies, Ownership Structure and Analyst Forecast Accuracy in the Hospitality Industry. Journal of Hospitality & Tourism Research (2023).
- Cross-dimensional measures of asset lightness and fee orientation in lodging groups. International Journal of Hospitality Management (2023).
- Determinants of Financial Efficiency and Performance in Big-Cap Chain Hotels. Ekonomi Politika ve Finans Arastirmalari Dergisi (2024).
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