Hotel management contract: impact on performance in the Korean hotel sector

This study investigates the influence of hotel management contract on the performance of super-deluxe hotels in Korea and identifies how the 1996–1997 tourism recessions affected the relationship between management contract and the performance of the hotels. The Mann–Whitney U test, stepwise logistic regression, and multivariate analysis of variance statistical analyses indicate that management contract is positively related to the performance of the hotels, and the 1996–1997 tourism recessions caused the management contract–performance link to vary. From the industry application perspective, this study provides hotel owners with empirical information relating to: (1) a means to assess the performance of hotels under management contract and (2) a decision rule to apply an appropriately matched operating arrangement to an environmental state for maximum performance. The results obtained present an invaluable analysis tool for all owners involved in charting a hotel's future.