COVID-19 pandemic and hotel property performance

PurposeThe purpose of this study is to test the local impact of COVID-19 pandemic on hotel performance at the individual property level, and further examine the roles of hotel attributes and business mix in potentially moderating or intensifying the impact of a crisis. Design/methodology/approachUsing a sample of 5,090 hotel properties in Texas, USA from January 2020 to December 2021, this study estimates a monthly hotel performance model to evaluate how the pandemic affected hotels' operational performance based on revenue per available room. FindingsResults show that a 10% increase in the monthly number of confirmed COVID-19 cases led to a 0.522% decrease in hotel performance. Also, a series of moderators were identified within the pandemic-performance relationship: the negative impact of the pandemic was more severe among higher-end hotels and newer hotels; urbanization and localization diseconomies prevailed during the pandemic; and there was a smaller negative effect of COVID-19 on high rated hotels in the category of economy hotels. Originality/valueThe moderators highlighted in this paper shed light on the heterogeneity of COVID-19's effects on hotel operations. Findings enrich the hospitality literature by considering business resilience in relation to the pandemic.