Methodological aspects of strategic management of financial risks during construction of hotel business objects

Elena A. Dzhandzhugazova, Natalia A. Zaitseva, Anna A. Larionova, Maria Vladimirovna Petrovskaya, Vladimir Z. Chaplyuk

Research output: Contribution to journalArticlepeer-review

35 Citations (Scopus)

Abstract

The article substantiates the actuality of strategic management of financial risks during construction of hotel business objects. Two main strategies of hotel business development are described: strategy of geographical expansion, based on the active entering the new markets by means of starting the larger number of standard hotels, and focused geographical strategy which supposes lower growth rates, as the growth is achieved by means of increasing the number of hotels with unique and first-class service and unmatched atmosphere. Financial risks are viewed in the article as many-aspect notion, depending on multiple factors of external and internal environment of a hotel enterprise. It is substantiated that formation of financial and economic model of risks management should be based on a complex approach to the analysis of the environment of organization functioning. At that, a special attention in these models should be paid to the risks related to financing of investment projects and evaluation of their cost. The authors offer and describe the strategy of hotel business development with implementation of targeted function of management – cost increase. This model allows determining the directions of hotel business cost increase and finding the main vector of development. The showed results of research supplement the existing approaches to strategic management in hotel business and stipulate the formation of methodological instrumentarium which allows minimizing financial risks during construction of hotel business objects. Implementation of well-balanced model of the structure of sources for financing hotel business enterprises will allow determining risks at the stage of construction, evaluating their significance, and developing timely measures for their minimization and liquidation.

Original languageEnglish
Pages (from-to)229-234
Number of pages6
JournalAsian Social Science
Volume11
Issue number20
DOIs
Publication statusPublished - 15 Jul 2015

Keywords

  • Construction
  • Hotel business
  • Risks
  • Strategy
  • Well-balanced model

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