Why do the Spanish hotels fail?: a study of its determinants


  • Milagros Vivel-Búa
  • Rubén Lado-Sestayo
  • Luis Otero-González


Bankrupcy, SMEs, hotel, Spain, determinants


This paper studies the determinants of bankruptcy in the small and medium Spanish hotel companies during 2000-2007. In particular, we study a sample of 1,679 hotels by means of conditional probability models (probit and logit) and a comprehensive set of accounting variables relating to profitability, indebtedness, economic and financial balance, economic structure, liquidity and activity. On the one hand, the results provide significant evidence of the positive influence of indebtedness and percentage of current assets, and on the other hand, of the negative influence of profitability and activity level on the probability of bankruptcy of the hotel.

Author Biography

  • Milagros Vivel-Búa
    Doutor e Mestre em Estudos Alemães pela Universidade Nova de Lisboa, Licenciado em Línguas e Literaturas Modernas e Bacharel em Turismo Professor Adjunto, ESGHT / Universidade do Algarve Editor de Tourism & Management Studies Coordenador do "Master in European Tourism Management", o qual se encontra integrado numa rede de 7 universidades europeias.






Tourism/Hospitality: Research Papers

How to Cite

Vivel-Búa, M., Lado-Sestayo, R., & Otero-González, L. (2024). Why do the Spanish hotels fail?: a study of its determinants. Tourism & Management Studies, 11(2), 25-30. https://www.tmstudies.net/index.php/ectms/article/view/807

Most read articles by the same author(s)