Settling for Less: The Institutionalization of the Hotel Feasibility Study

Abstract

Hotel feasibility studies play an important role in the hotel development process as hotel developers, lenders, and operators all require an analysis of a hotel's projected operating performance and the ensuing financial returns. Such studies are rarely effective, however, at predicting future performance. Although scholars and practitioners have repeatedly recommended numerous improvements to correct their methodological weaknesses and improve their accuracy, few changes have been incorporated. This study's purpose was to identify the underlying reasons why the methodological improvements identified in previous studies have not been undertaken. The research employed a qualitative methodology based on interviews with leading hotel owners, developers, lenders, and consultants. The key findings of the research demonstrated that the way in which feasibility studies are used, the value the stakeholders place on them, cost and time constraints, and the limited incentives and accountability associated with improving underlying assumptions and methodologies are key drivers behind the marginalization and stagnant evolution of the hotel feasibility study.

A Study On The Level Of Institutionalization Perceived By Hotel Employees

“…Examining the body of literature on institutionalization, it is understood that different dimensions of institutionalization such as its relation to human resources management practices (Akkuş and Bilen, 2020;Boselie et al, 2003;Yılmaz and Kitapçı, 2017), possible problems (Akyol and Zengin, 2014;Özbay and Ellidört, 2020), a scale study on its criteria (Aylan and Koç, 2017), levels of perception in hotel establishments (Aylan and Koç, 2018), relations to job satisfaction (Demirci et al, 2020), its impact on levels of institutional entrepreneurship (Karacaoğlu and Sözbilen, 2013), applications in catering establishments (Kızanlıklı, 2018), its variance according to the structure of establishments (Tengilimoğlu and Akgöz, 2019), its impact on emotional labor behavior (Çetinkaya and Korkmaz, 2018), its impact on business performance (Apaydın, 2008), its relation to hotel feasibility studies (Hodari and Samson, 2014), its impacts on the quality of working life (Marta et al, 2013) and on competitive power (Türkoğlu and Dalgıç, 2017;Türkoğlu, 2018), its impact on the use of strategic management instruments (Kurt and Yeşiltaş, 2016) have been investigated. Specifically, within the scope of the present study, a similar study carried out by Aylan and Koç (2018) comes to the fore.…”