ABSTRACT

This paper is to investigate the factors of hotel profitability by introducing a new construct: Crisis Severity into a Partial Least Model and examine to what extent different factors affect hotel profitability under the severe pandemic of COVID-19. Data were collected from different hotel managers across China. From the results of PLS-SEM, Hotel Locations, Tourist Destination, Crisis Severity significantly influence Hotel Performance. This paper contributes to the defining the determinants toward hotel profitability and integrated Crisis Severity as a new variable. It provides a deeper insight for hotel business or tourism industries to better quantify hotel profitability.