Analysis of Asset-Light and Fee-Oriented Strategy and Firm’s Value of Asian Hotel Industry

Main Article Content

Rabia Aslam
Adeel Nasir

Abstract

The present study attempts to assess the firm’s value of hotel industry with the implementation of ALFO strategy by using panel data of main tycoon hotels of Asia for the period from 2013 to 2023. Data is taken from the stock exchange of different countries and Hofstede Index is used for the national culture dimension. By using STATA, results are obtained with the help of LM tests. It has been identified and analyzed that national culture of any country positively moderate the relationship between the ALFO strategy and firms’ value. The movement of ALFO is significant among hotel firms. Fee-based business enables the firms to enlarge market segments with limited investment. The behavior of managers is intended to adopt ALFO depend up the industry norms and culture. Hence, in Asian managers are not in intention to adopt ALFO strategy aggressively as they are in practices of keep their fixed assets with them. This study further supports to pecking order theory where managers of Asian and European are different in their nature and in investment decision.


The results of this study further helpful for the Pakistan hotels industry to increase their firm's value by keeping a lighter percentage of their fixed assets and giving franchises to others. In this way, firms can generate more revenue in terms of royalty and management fees.

Article Details

How to Cite
Rabia Aslam, & Nasir, A. (2024). Analysis of Asset-Light and Fee-Oriented Strategy and Firm’s Value of Asian Hotel Industry. Pakistan Journal of Multidisciplinary Research, 5(2), 1-16. Retrieved from http://pjmr.org/pjmr/article/view/480
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