How hotel owner-operator goal congruence and GM autonomy influence hotel performance

Demian Hodari, Michael J. Turner, Michael C. Sturman

Research output: Contribution to journalArticlepeer-review

16 Scopus citations

Abstract

A principal-agent relationship exists between hotel owners and the management companies which often operate their hotels. In addition, they both act as principals to a mutual agent, the hotel's General Manager, who is tasked with trying to achieve each parties' objectives. Extensive research on hotel management agreements which govern the owner-operator relationship has demonstrated that these objectives are often incongruent. However, the property-level managerial and performance implications of their goal incongruence has not been empirically examined. This study analyzes these issues using a matched sample of surveys from both owners and operators across 64 hotels operated under hotel management agreements. Using structural equations modeling, we demonstrate that owner-operator goal congruence positively impacts hotel performance and that this relationship is both mediated and moderated by the hotel General Manager's autonomy.

Original languageEnglish (US)
Pages (from-to)119-128
Number of pages10
JournalInternational Journal of Hospitality Management
Volume61
DOIs
StatePublished - Feb 1 2017
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Tourism, Leisure and Hospitality Management
  • Strategy and Management

Keywords

  • Autonomy
  • Goal congruency
  • Hotel management agreement
  • Operator
  • Owner
  • Performance

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