Dr Abuagila Almahdi
Research Topic
“A Critical Evaluation of the Factors Driving Shareholder Value in the Hospitality Industry: A Case Study of Corinthia Group”
Supervisor
Assistant Professor Hossam Zeitoun
Strategy & International Business Group
Summary of Research Area
Abuagila’s research critically examines the factors influencing shareholder value within the hospitality industry, focusing on the strategic choices between asset-heavy and asset-light business models. This case study of Corinthia Group explores how ownership structures and macroeconomic disruptions, including the COVID-19 pandemic, affect financial and market performance.
This study involves:
- Exploration of Strategic Models: Analysing the effects of asset-heavy versus asset-light strategies on shareholder value and their financial/market performance implications.
- Ownership Structure and Performance Dynamics: Investigating the relationship between ownership concentration, tangible asset preferences, and shareholder returns using metrics such as ROE, ROA, and the Tobin Q ratio.
- Impact of Macroeconomic Factors: Evaluating how disruptions, including COVID-19, influence the asset strategy-shareholder value relationship.
- Development of a Practical Framework: Proposing actionable insights for stakeholders to address strategic challenges, conflicts, and investment decisions.
- This research employs a mixed-methods approach, combining qualitative interviews with 30 Corinthia Group stakeholders and quantitative analysis of 187 international hotels from 2010 to 2022.
Key Findings - The findings contribute to theoretical understanding and practical applications in the field by:
Identifying the superior shareholder value generated by asset-light companies. - Highlighting the preferences of institutional shareholders for asset-heavy models.
- Uncovering the limited impact of the COVID-19 pandemic on the asset strategy-shareholder value relationship.
- The research also emphasises areas for future exploration, such as the role of dividend payouts in mitigating shareholder conflicts and addressing gaps in data availability from privately owned, unlisted hotels.