The Global Expansion of Multinational Hotel Groups Under the Domestic and Local Strategies

Open Access
Shelton, Anthony Joseph
Area of Honors:
Interdisciplinary in Finance and Hotel, Restaurant, and Institutional Management
Bachelor of Science
Document Type:
Thesis Supervisors:
  • Laura B Field, Thesis Supervisor
  • James Alan Miles, Honors Advisor
  • Arun Upneja, Honors Advisor
  • Event Study
  • Hotel Expansion
  • Casino
  • International Business
Based on the examination of more than 850 announcements of multinational hotel groups announcing new hotel or brand openings abroad, this thesis analyzes shareholder reactions for firms expanding internationally: domestic, local, or mixed. Furthermore, this paper analyzes other factors that affect these returns, such as continent of expansion and casino versus nongaming hotels. A three-day abnormal stock return analysis, surrounding each announcement, suggests that the domestic strategy yields the highest returns. With the domestic strategy, hotel groups can leverage their strong domestic brands abroad, creating a consistent experience that guests can expect. The author also notes the rapid growth of casinos into the global arena.