THE TOP 5 INTERNATIONAL HOTEL CHAINS’ SHARE PRICE IMPACT FACTORS

Abstract

The purpose of this study is to investigate the top 5 international hotel chain’s share price impact factors, with emphasis on hotel specific and financial aspects during 2013-2016. This study is crucial since the tourism industry growth significantly in the last 4 years, and hotel industry is important for the tourism business. Therefore, this study would like to analyze the firm’s value that be represented by share price of the top 5 international hotel chains. This study employs a main research question: ‘What are the significant factors that influence the top 5 international hotel chain’s share price?’ Moreover, this study investigates the impact of 3 independent variables from hotel specific aspects, which are total room, revenue per available room (RevPAR), and occupancy rate; and another 4 independent variables to represent financial aspects, such as current ratio, operating margin, earning per-share（EPS), return on asset (ROA) toward share price. The research methodology is panel data general least square (GLS) by STATA M-64. The findings of this research are revenue per available room (RevPAR), current ratio, operating margin, earnings per-share (EPS) are significantly influence the share price. Moreover, this study shows that EPS has a positive and significant impact toward the share price. It means in the top 5 international hotel chain industry, revenue per available room (RevPAR), current ratio, and operating margin has negative impact toward its share price. This finding supports the principles of efficiency market hypothesis that published financial performance has weak impact toward share price, even though this study recommends further study to find the reason why revenue per available room (RevPAR), current ratio, and operating margin in the top 5 international hotel chains’ industry have negative impact toward the share price.