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In this vein, this paper aims to provide empirical evidence on the following questions: Which expansion strategies offer better operational and economic performance? What effects does performance-related diversification have? How do other factors such as size, quality, service offered, location or seasonality interact with performance.

In this paper, the analysis of the effects of growth strategies and hotel attributes on performance is carried out with a sample of 255 hotels that operate internationally. Using panel data and quantile regression, this study evaluates the effect of expansion and diversification on the hotels’ performance.

From these findings, it appears that the equity strategy (own hotels) outperforms non-equity strategies (hotels under rental, franchise and management contract) at the operational level. However, the economic return of the property, both adjusted and unadjusted to risk, is lower under the property ownership strategy than under the franchise and management strategies because, in general, it requires a higher investment. Regarding diversification, the growth strategy based on related diversification in food and beverage services has a negative impact on performance, calling into question the synergies between the two businesses. However, an exception to this effect is seen among those hotels, mainly those in the Caribbean, that opt to provide all-inclusive services, since these hotels achieve better occupancy rates and more stable results.

This study has not taken into account the effect of hotel property revaluation on the performance of the ownership strategy, as there is no information on the historical average revaluation at the level of each individual hotel. This study has also been unable to include information regarding the level of competition and seasonality of sales.

This paper considers a wide number of factors that can influence the performance of hotels. Second, this is the only paper that studies the impact of growth strategies from the point of view of the hotel chain. Also, the sample considered uses data at the individual level on hotels and this research analyses not only operational performance but also economic performance.

The purpose of this paper is to examine the factors that play a decisive role in determining growth strategies implemented by the hotel chains of the Balearic Islands in the Caribbean and Gulf of Mexico.

In line with most research on the choice of entry mode, the dependent variable is a categorical one. Given the nature of the dependent variable, logistic regression (or logit) models were used to verify the hypotheses. Since there were more than two categories involved, a multinomial logit model was applied.

The main findings show that the choice of foreign market entry mode cannot rely solely on host‐specific factors. Moreover, this study facilitates a comparison of the results of this paper and the results of other similar studies of the international hotel industry.

This paper offers several contributions. First, it is a new contribution to the understanding of the factors that determine the behavior of hotel chains in their international expansion. Although this study has been done in other sectors (industrial), it is a novelty in the field of hospitality and, more specifically, in the hotel chains. In addition, new specific, strategic and control factors have been incorporated to help improve the explanation of the study object. Finally, the paper focuses on an important international market, such as the Caribbean and Gulf of Mexico.