How Hotel Owner-Operator Goal Congruence and GM Autonomy Influence Hotel Performance
Hodari, Demian; Turner, Michael J.; Sturman, Michael C.
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.
hotel management agreement; owner; operator; goal congruency; performance; autonomy
Required Publisher Statement: © Elsevier. Final version published as: Hodari, D., Turner, M. J., & Sturman, M.C. (2017). How hotel owner-operator goal congruence and GM autonomy influence hotel performance. International Journal of Hospitality Management, 61, 119-128. doi: 10.1016/j.ijhm.2016.11.008 Reprinted with permission. All rights reserved.