Rubén Lado-Sestayo

Impact of location on the probability of default in the Spanish lodging industry: A study of MSMEs

The authors analyse the determinants of business failure in micro-, small- and medium-sized Spanish hotel companies during 2008–2011. They consider accounting variables representative of the economic and financial situation and other variables of lodging activity. This approach is important because several previous studies have highlighted the need to develop empirical models tailored to an industry, especially when it is as significant in the national economy as the hotel industry is in Spain. The article also examines whether the models developed to date remain valid in the new economic environment characterized by the economic crisis. The results obtained confirm the influence on the probability of business failure of profitability, debt, economic structure, economic and financial stability and liquidity. Moreover, significant influence is identified with regard to the number of delegations, the level of employment, seasonality and competitive concentration in the tourist destination where the business is located.

Determinants of TRevPAR: hotel, management and tourist destination

Purpose This paper studies the determinants of hotel performance, especially the role of location, in the Spanish hotel market. Design/methodology/approach The sample is composed of 1,034 hotels located in 97 tourist destinations in Spain during the period 2005–2011. The estimations were made by generalised least squares (GLS) using panel data. Findings Overall, the results show that hotel attributes are the main determinant of performance. In particular, there is a minimum efficient scale in the hotel business. Location is the second most important determinant. This paper confirms that geographical location models, agglomeration models and competition models are relevant in the study of the effect of location on hotel performance. Regarding management practices, the performance is positively affected by good asset management. Practical implications Hotel managers can improve the TRevPAR by individually making decisions regarding its characteristics and management practices, especially, size and asset eff...

The main determinants of subprime securitization in the Spanish RMBS securities

This article is a model to identify the determinants of subprime securitizations. In several countries, there is no classification of the underlying assets. Consequently, investors have fewer tools to identify which securitizations are subprime. Using a sample of mortgage securitization transactions issued in Spain from 1998 until the first half of 2009, we analyse the effects of a great securitization expansion. According to previous literature, we identify main determinants of residential mortgage-backed security default rate and construct a prediction model of default rate. By means of different probit models, our results show the importance of loan to value and seasoning, among other determinants, as predictive indicators of default rates. The results obtained point to more relaxed lending standards due to higher securitization levels. Our findings help to gain a more accurate perspective of the true effects of the mortgage securitization process and reinforce the role of certain determinants as default predictors in a context without a classification of underlying assets.

The impact of tourist destination on hotel efficiency: A data envelopment analysis approach

Abstract This paper evaluates the impact of location on hotel efficiency using a sample of 400 Spanish hotels, the novel aspect being that location is considered at the tourist destination level. Moreover, for the first time, the location variables are based on the main theoretical models concerning location in the hotel sector, namely geographical positioning models, agglomeration and urbanization economic models and competitive environment models. The methodology consists of a four-stage data envelopment analysis (DEA) model that decomposes super-efficiency in the portion attributable to the tourist destination and the portion attributable to hotel management. Then, managerial efficiency is regressed against hotel characteristics, while tourist destination efficiency is explained by the characteristic of each location. The findings highlight the importance of tourist destinations, providing novel empirical support for the propositions of the main location models. Indeed, the tourist destination is the main cause of differences in the level of efficiency among hotels. The occupancy level, degree of seasonality and market concentration are the variables with the greater impact on efficiency.

¿Por qué quiebran los hoteles españoles?: un estudio de sus determinantes

This paper studies the determinants of bankruptcy in the small and medium Spanish hotel companies during 2000-2007. In particular, we study a sample of 1,679 hotels by means of conditional probability models (probit and logit) and a comprehensive set of accounting variables relating to profitability, indebtedness, economic and financial balance, economic structure, liquidity and activity. On the one hand, the results provide significant evidence of the positive influence of indebtedness and percentage of current assets, and on the other hand, of the negative influence of profitability and activity level on the probability of bankruptcy of the hotel.

Connection between hotel location and profitability drivers: an analysis of location-specific effects

ABSTRACT This paper analyzes the impact of the spatial positioning of a hotel on profitability. The determinants that increase hotel profitability could differ from one location to another. No previous studies have delved into the analysis of the spatial stability hypothesis of hotel profitability, so this is the main contribution of this paper. The theoretical framework is based upon the models of geographical positioning, agglomeration economies, and competitive environment. The econometric analysis was performed on a large sample of Spanish hotels, including information about hotel characteristics and tourist destination aspects from 2005 to 2011, which encompass the high growth, crisis, and recovery subperiods. The results show that empirical testing of performance determinants cannot neglect the spatial location of the hotel because important differences among locations were found.

ANÁLISIS DE LA EXPOSICIÓN ECONÓMICA AL RIESGO CAMBIARIO EN EL MERCADO ESPAÑOL

This paper analyzes the economic exposure to exchange rate and its determinants in the Spanish market, considering six currencies against the euro: the US dollar, the Chinese yuan, the Swiss franc, the pound sterling, the Norwegian krone and the Russian ruble. This is relevant because the exchange rate volatility can have a direct impact on the operations of the company in the short term and it can also impact on its value in a longer time horizon. The results obtained in this study confirm that the majority of companies have an export profile in its foreign exchange risk exposure, ie benefit from depreciation of the euro against other currencies, especially the British pound. By contrast, the net importers predominate when we study the euro against the Swiss franc. Also, its determinants differ between exporters and importers, although we found that the geographic diversification is a operational hedging in both cases.

Location and Business Creation: An Analysis of the Lodging Sector

Location is a very important factor analyzed by firms on creation decisions. This paper analyzes the determinants of business creation in the Spanish hospitality industry. Spanish hotels have a relevant position in the global tourism context so it can generate relevant results to other countries. By means of different econometric models, we identify the effect over both the existence of creation and the intensity. The sample consists of 8992 hotel establishments during the period 2005–2011. We have also considered data of the 97 tourist destinations that exist in Spain according to the National Statistics Institute. The results obtained identify how different tourist destinations are accessible to the entry of new competitors. Also, they point the mechanisms through which the incumbent firms reduce the entry of competitors. Main contributions are related to measurement of anti-competitive practices effect on the entry of competitors and identification the factors that act as drivers and as entry barriers to business creation.