The non-linear relationship between brand diversification and hotel owner performance: The roles of ownership structure and location as moderators

Abstract This study investigates the non-linear relationship between brand diversification and hotel owner performance. Using hotel owner level data from 2000 to 2018 in Texas, findings infer a concave relationship between brand diversification and hotel owner performance where the impact of brand diversification on performance is positive until a certain point and then becomes negative. The moderation effects of ownership structure and location are also estimated, showing significant effects on the relationship between brand diversification and hotel owner performance. Specifically, hotel owners who (a) have a portfolio with a higher percent of chain-affiliated hotels, and (b) are located further from the neighbouring hotels are more likely to benefit from brand diversification. We provide practical insights to help hotel entrepreneurs improve performance.