HOTEL COMPANIES AT BUCHAREST STOCK EXCHANGE. WHAT DO THEY OFFER TO INVESTORS?
DOI:
https://doi.org/10.24193/subbnegotia.2023.2.04Keywords:
hotel companies, Bucharest Stock Exchange, shareholders, free-floatAbstract
Hotel groups listed on various security exchanges have the tendency to be representative for their respective country and/or to be emblematic worldwide. They expand and evolved from an owner-operator business model, still dominant in the 1980s, toward a sophisticated combination of the owner-operator model and asset-light business model. In the case of Romania, the owner-operator business model is dominant and is the common ground for the hotel companies listed at Bucharest Stock Exchange. The present paper has the following objectives: a) to investigate which of the former hotel companies listed on Rasdaq were chosen to be transferred on the new alternative trading system; b) if new hotel companies were willing to become publicly traded on BVB or in AeRO; c) to identify the portfolio of hotels for the listed companies, and d) to investigated the trading frequency, volume and value, and extract potential patterns. The period under scrutiny is May 2015 – May 2023. Based on the findings of the present paper the Romanian listed hotel companies do not attract the investors’ attention since they do not offer too much. Some of the problems might be generated by the low free-float and controlling shareholders/groups. Though, the main problems seem to be related to the companies’ lack of proper transparency regarding their activities (and profit centers), hotel/lodging portfolios, and the absence of (at least) domestic known brand.
JEL Classification: Z31, Z33, G10
Article history: Received: June 9, 2023; Reviewed: July 14, 2023; Accepted: July 28, 2023; Available online: July 31, 2023; Available print: August 30, 2023.
References
Al-Homaidi, E.A., Almaqtari, F.A., Ahmad, A., Tabash, M., (2019), Impact of corporate governance mechanisms on financial performance of hotel companies: Empirical evidence from India, African Journal of Hospitality, Tourism and Leisure, 8(2), 1-21, available at: https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_31_vol_8_2__2019_uae.pdf
Aliano, M., Boido, C., Galloppo, G., (2023), The impact of the financial and health crisis on listed hotel stocks, Journal of Finance and Investment Analysis, 12(2), 29-46, DOI: https://doi.org/10.47260/jfia/1223
Anguera-Torrell, O., Aznar-Alarcon, J.P., Vives-Perez, J., (2021) COVID-19: hotel industry response to the pandemic evolution and to the public sector economic measures, Tourism Recreation Research, 46(2), 148-157, DOI: https://doi.org/10.1080/02508281.2020.1826225
Balint, C., Pop, C., (2015), Romanian Hotel Industry Profile through the Traded Hotel Companies, Elsevier, Procedia Economics and Finance, volume 25, 332-343, DOI: https://doi.org/10.1016/S2212-5671(15)00743-1
Barreda, A.A., Kizidag, M., (2015), Who are the bulls and bears in global lodging markets?, Journal of Hospitality Financial Management, 23(2), article 2, DOI: https://doi.org/10.1080/10913211.2015.1013855
Bourke, J.G., Izadi, J., Olya, H.GT., (2020), Failure of play on asset disposals and share buybacks: Application of the game theory in the international hotel market, Tourism Management, 77, 103984, DOI: https://doi.org/10.1016/j.tourman.2019.103984
Bhamorasathit, S., Katawandee, P., (2014), Ratio analysis of publicly traded hotel companies listed on the Stock Exchange of Thailand (SET). Proceedings of ASBBS (Annual Conference, Las Vegas), 21(1), 92-96, available at: https://www.proquest.com/openview/600eecb2cc045e218c1aa488576b02c9/1?pq-origsite=gscholar&cbl=2030636
Dogru, T., (2017), C-corporation hotels vs. Hotel-REITs: A theoretical and practical comparison, Boston Hospitality Review, Winter 2017, 5(1), available at: https://www.bu.edu/bhr/archives/pdf-archives/
Fullana, O., Priego, A.M., Toscano, D., (2022), The role of financial performance of Eurostoxx listed hotel companies in determining CEO compensation, International Journal of Hospitality Management, 104, 103242, DOI: https://doi.org/10.1016/j.ijhm.2022.103242
Gannon, J., Roper, A., Doherty, L., (2010), The impact of hotel management contracting on IHRM practices: Understanding the bricks and brains split, International Journal of Contemporary Hospitality Management, 22(5), 638-658, DOI: https://doi.org/10.1108/09596111011053783
Garcia-Gomez, C.D., Demir, E., Diez-Esteban, J.M., Bilan, Y., (2021), The impact of COVID-19 outbreak on hotels’ value compared to previous diseases: the role of ALFO strategy, Heliyon, 7, e07836, DOI: https://doi.org/10.1016/j.heliyon.2021.e07836
Hadi, D.M., Naeem, M.A., Karim, S., (2022), Impact of COVID-19 on the connectedness across global hospitality stocks, International Journal of Hospitality Management, 104, 103243, DOI: https://doi.org/10.1016/j.ijhm.2022.103243
Hotels, (2021), Hotels 225, 55(4), 74-84, available at: https://hotelsmag.com/magazine/
Hotels, (2022), Hotels 225, 56(5), 32-38, available at: https://hotelsmag.com/magazine/
Huy, D.T.N., (2019), The risk level of Viet Nam listed hotel, tourism and entertainment industry after the global crisis 2009-2011, Journal of Business School, 2(5), 1-11, DOI: https://doi.org/10.26677/TR1010.2019.118
Kanamura, T., (2023), An impact assessment of the COVID-19 pandemic on Japanese and US hotel stocks, Financial Innovation, 9, 87, DOI: https://doi.org/10.1186/s40854-023-00478-2
Lee, S., Upneja, A., (2007), Does Wall Street truly understand valuation of publicly traded lodging stocks?, Journal of Hospitality & Tourism Research, 31(2), 168-181, DOI: https://doi.org/10.1177/1096348006297288
Lee, B-Y., (2021), The effect of tourism expansion on firm performance: Evidence from Japan, European Journal of Business and Management Research, 6(5), 235-238, DOI: http://doi.org/10.24018/ejbmr.2021.6.5.863
Murugescu, T., (2013), Effect of debt on corporate profitability (Listed hotel companies Sri Lanka), European Journal o Business and Management, 5(30), 13-18, available at: https://www.iiste.org/Journals/index.php/EJBM/article/view/9440
Olagunju, A.O., Nwaobia, A.N., Ogundajo, G.O., (2020). Working capital and profitability of listed hotel companies in Nigeria, African Journal of Hospitality, Tourism and Leisure, 9(4), 669-684, DOI: https://doi.org/10.46222/ajhtl.19770720-44
Pop, C., Balint, C., (2013), The presence of SMEs at Bucharest Stock Exchange, Studia UBB Negotia, 58(3), 71-93
Pop, C., Balint, C., Georgescu, M-A., (2014), Was Rasdaq doomed from the start? A preliminary investigation, Theoretical and Applied Economics – Special Issue/ Supplement TAE: International Finance and Banking Conference – FI BA 2014 (XII Edition), 155-189
Pop, C., Coros, M.M., Georgescu, M.A., Bonea, M., (2018), Romanian branded hotels: are they worth the effort?, Theoretical and Applied Economics, 25(4), 35-46
Roper, A., (2015), Vertical Disintegration in The Corporate Hotel Industry, Current Issues in Tourism, 20(1), 1-6, DOI: https://doi.org/10.1080/13683500.2015.1068282
Roska, V., (2021), COVID-19 tourist seasons and business activities of listed hotel companies in Croatia, WSEAS Transactions on Business and Economics, 18, 1291-1303, DOI: https://doi.org/10.37394/23207.2021.18.120
Seo, K., Woo, L., Mun, S.G., Soh, J., (2021), The asset-light business model and firm performance in complex and dynamic environments: The dynamic capabilities view, Tourism Management 85, 104311, DOI: https://doi.org/10.1016/j.tourman.2021.104311
Seo. K., (2021), Asset-light business model: Strategies for hotels during the pandemic, Boston Hospitality Review, June 2021, available at: https://www.bu.edu/bhr/archives/pdf-archives/
Thottoli, M.M., Al Harthi, F.N., (2022), Corporate branding and firm performance: a study among Oman hotel industry, Arab Gulf Journal of Scientific Research, 40(3), 214-234, DOI: https://doi.org/10.1108/AGJSR-04-2022-0035
van Ginneken, R., Koens, K., Fricke, J., (2017), Ownership perceptions in European hotel management agreements, International Journal of Hospitality and Tourism Administration, 20(4), 449-467, DOI: https://doi.org/10.1080/15256480.2017.1397586
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Studia Universitatis Babeș-Bolyai Negotia
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
