Radovan Bacik

Faculty of Management, University of Prešov in Prešov,

Slovak Republic

radovan.bacik@unipo.sk

Differences in financial performance between various categories of hotels in the Visegrad Group countries

Richard Fedorko

Faculty of Management, University of Prešov in Prešov,

Slovak Republic

richard.fedorko@unipo.sk

Beata Gavurova

Faculty of Management and Economics,

Tomas Bata University in Zlín,

Czech Republic

gavurova@utb.cz

Viera Ivankova

Faculty of Management, University of Prešov in Prešov,

Slovak Republic

viera.ivankova@smail.unipo.sk, ivankova.vierka@gmail.com

Martin Rigelsky

Faculty of Management, University of Prešov in Prešov,

Slovak Republic

martin.rigelsky@smail.unipo.sk, martin.rigelsky@gmail.com

Abstract. Under market economy, financial health of businesses is one of the main determinants in achieving business objectives and building a competitive advantage. The objective of the study is to evaluate differences in the selected financial indicators across the categories of hotels in the Visegrad Group countries. This objective was achieved by testing these differences in the selected financial indicators (CF, EVA, ROE, ROCE, ROA, ROS and many others) for various hotel categories (two- to five-star hotels). Hotel category data (stars) were collected from Booking.com, financial outcomes were obtained directly from the financial statements of the analysed hotels. Testing of differences was carried out by non-parametric tests (Kruskal-Wallis test, Wilcoxon test). Statistically significant differences were found in CF, EVA, ROS, Profit margin, EBITDA margin, EBIT margin, Solvency ratio Asset, Turnover time, Current Liabilities Turnover. The outputs of the analyses reveal that hotels of a higher category show better financial outputs. Therefore, in order to increase their financial performance, lower category hotels should be inspired and focused on the activities of higher category hotels. The study points to the fact that the variable of hotel category should be taken into account in any analytical processes focused on the financial health of hotels.

Received: September, 2019

1st Revision: January, 2020

Accepted: May, 2020

DOI: 10.14254/2071-8330.2020/13-2/19

JEL Classification: C58, O16

Keywords: hospitality sector, financial health, profitability, disparities, Visegrad Group, hotels