The Debate Regarding Profitability : Hotel Unit and Hotel Brand Revenue and Profit Relationships

@inproceedings{ONeill2007TheDR,
  title={The Debate Regarding Profitability : Hotel Unit and Hotel Brand Revenue and Profit Relationships},
  author={John W. O’Neill and Anna S. Mattila},
  year={2007}
}
Our research note explores a debate in the hotel industry regarding the relationship between hotel RevPAR and profitability, a debate around which there is a great degree of “noise.” Using a sample of 1,954 actual hotels for which both top line and bottom line indicators were available for the same year, we conclude through our statistical analyses that while hotels with higher revenue, and particularly higher room revenue, have a higher NOI in dollars, they do not necessarily have a more… CONTINUE READING

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