Theodore Metaxas, Athanasios Romanopoulos

A Literature Review on the Financial Determinants of Hotel Default

  • Finance
  • Economics and Econometrics
  • Accounting
  • Business, Management and Accounting (miscellaneous)
Save to CiteDrive Show PDF

Empirical corporate failure studies focusing on specific economic activities are increasing in number, as this path can be a more precise investigation of default, although still there is a gap in the literature reviews at the sector level. The purpose of this study is to focus on the hotel sector and isolate the financial determinants linked to hotel default, as the approach of accounting-based models is the most frequent practice. To arrange the variety of outputs, a thorough design is applied based on specific inclusion and exclusion criteria, leading to 29 studies, which are further narrated, focusing mainly on the financial dimension. In addition, information on the study design is recorded in an aggregated table. The most frequent stylized results show that debt and liability measures increase the default risk, while measures of profitability and size in terms of total assets reduce the risk. This review addresses the calls for a sectoral focus and provides an up-to-date financial overview of hotel default assessments. It further aims to benefit academia, as it can act as a base for further development, as well as stakeholders involved in the financial sustainability of the hotel sector.

Need a simple solution for managing your BibTeX entries? Explore CiteDrive!

  • Web-based, modern reference management
  • Collaborate and share with fellow researchers
  • Integration with Overleaf
  • Comprehensive BibTeX/BibLaTeX support
  • Save articles and websites directly from your browser
  • Search for new articles from a database of tens of millions of references
Try out CiteDrive

More from our Archive