Selecting Profitable Hotel Sites at La Quinta Motor Inns

Sheryl E. Kimes and James A. Fitzsimmons
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Sheryl E. Kimes: School of Hotel Administration, Cornell University, Ithaca, New York 14853
James A. Fitzsimmons: Department of Management, University of Texas, Austin, Texas 78712

Interfaces, 1990, vol. 20, issue 2, 12-20

Abstract: Selecting a good site plays a crucial role in the success of a hotel, and as competition intensifies in the lodging industry, it has become increasingly important. The success of a site is based on competitive, demographic, physical, market awareness, and demand generator variables. We built a regression model for La Quinta Motor Inns, a mid-sized hotel chain headquartered in San Antonio, Texas, that predicted profitability for sites under consideration. We validated the regression model on new data and incorporated it into a spreadsheet decision model that management uses for selecting sites. The model minimizes the risk of picking an unprofitable site.

Keywords: industries: hotel motel; decision analysis: applications; statistics: regression (search for similar items in EconPapers)
Date: 1990
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