Growth strategies in the Spanish hotel sector: determining factors

Abstract

Purpose The central aim of this paper is to identify some of the motives behind the type of growth strategy followed by Spanish hotel enterprises in recent years. Design/methodology/approach This study was elaborated from secondary data corresponding to news published on the web page of a digital newspaper specialising in tourism – HostelTur. The information obtained in this way was completed and contrasted using other sources like the BARATZ database (where all the news items published in the economic press since 1981 are collected), and the web pages of hotel enterprises, since many of them publish news about their main actions along with the most relevant events that take place within these organizations. Findings From a sample of 444 observations, the results suggest that initial profitability, size, age and indebtedness level of firms are some of the factors determining growth strategies in this sector. Originality/value The paper throws light on some of the reasons behind the behaviour of Spanish hotel enterprises as far as growth is concerned. The innovative approach of this study, which focuses on the causes rather than on the consequences of certain corporate growth strategies, is its main contribution.