Transforming Brand Identity to Hotel Performance: The Moderating Effect of Social Capital

Abstract

Hotel performance is one of the core concerns for managers and investors. However, a clear pathway from investment in branding to hotel performance is scarce. To fill this research gap, the study aims to explore the effects of brand identity, physical facility quality, and brand equity on hotel performance; and to examine the moderating effect of social capital in the brand–performance transformation model in both international and domestic brand hotel settings. Data were collected from 1,201 hotel managers in China, with 757 from international and 444 from domestic brand hotels. Theoretically, this study represents a first attempt to reveal the indirect roles that social capital plays in the hotel financial performance formation. The identified brand–performance pathway also provides implications for hotel practitioners regarding how to boost desirable hotel performance through both internal and external resources.