Factors affecting operation and maintenance cost of hotels

Abstract

Purpose

The purpose of this paper is to identify, assess, rank, and compare the most influencing factors in three-, four-, and five-star hotels in the Eastern Province in Saudi Arabia.

Design/methodology/approach

A combination of literature and interviewing of ten local experts have resulted in the identification of 46 factors. Through a web-based questionnaire survey, the identified factors were ranked. A total of 23 responses were gathered from the full population of the 47 hotels (14 five-star, 15 four-star and 18 three-star hotels) in the Eastern Province of Saudi Arabia. A reliable overall response rate of 50 percent was achieved.

Findings

The most important factors affecting the operating and maintenance cost of five-star hotels are “climatic conditions” followed by “availability of the materials,” “annual energy consumption rate,” and “efficient energy consuming equipment.” Regarding four-star hotels, those factors are “star rating of the hotel” followed by “customer satisfaction,” “occupancy rate,” and “efficient energy consuming equipment.” Finally, the top-ranked factors for three-star hotels are “climatic conditions” followed by “floor area,” “glass and non-glass façade,” and “occupancy rate.”

Research limitations/implications

The most important factors affecting the operating and maintenance cost of five-star hotels are “climatic conditions” followed by “availability of the materials,” “annual energy consumption rate,” and “efficient energy consuming equipment.” Regarding four-star hotels, those factors are “star rating of the hotel” chased by “customer satisfaction,” “occupancy rate,” and “efficient energy consuming equipment.” Finally, the top-ranked factors for three-star hotels are “climatic conditions” followed by “floor area,” “glass and non-glass façade,” and “occupancy rate.” The shared concern point between the respondents of all three groups of hotels is relevant to the energy department, which keeps the facility running.

Originality/value

This paper is original in the sense that the areas of knowledge and practice covered in the identified factors were distributed and not available in one source. The factors are derived from personal interviews with the selected operation and maintenance/engineering managers of all three classes of hotels, and from the relevant literature.

Citation

Ihsan, B. and Alshibani, A. (2018), "Factors affecting operation and maintenance cost of hotels", Property Management, Vol. 36 No. 3, pp. 296-313. https://doi.org/10.1108/PM-04-2017-0023