The Financial Impact of Joining the Chain and Improving Hotel Rating: A Case Study in Russia

Abstract

The objectives of this study were to consider the development of hotel chains in Russia and, further, to analyze the financial advantages or disadvantages of joining as part of the largest hotel chain’s membership, as well as to analyze the financial activity of the company before and after joining the chain. The theoretical foundation of this research was based on overall theories of economic development. This research was conducted within a case study framework. The research instruments used were interviews of hotel employees for thematic analysis, and chronological analysis of the hotel’s financial performance during two periods: 2010-11 and 2012-13. Findings of the research indicate that joining a well-known and large hotel chain as well as an improved hotel ranking has a significant financial impact on the hotel studied within this case study. It certainly improved the image of the hotel in the market, increased its reputation, and made it more recognizable.