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Based on resource-based theory (RBT), our study analyzes the conditions that make the corporate brand have a greater impact on firm's performance. Using a fiveyear panel of Spanish hotels, our results confirm that hotels with corporate brand have greater profitability. In line with RBT, this effect is stronger when the corporate brand is more valuable for customers (i.e., for lower quality segment), when it is more difficult to imitate (i.e., older brands) and finally when it is exploited through specific organizational governance mechanisms (i.e., vertically integrated organization). Contrary to RBT, we found a negative effect of rarity on the performance of hotels that compete in the same city. More specifically, our results show that as more hotels use the corporate brand, the profits for the firms that compete nearby increase. Thus, the results provide support for RBT but it also provides novel ideas regarding the effect of rarity.

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