Managers\u27 stock ownership and performance in lodging industry

Separation between owner and manager in the lodging industry may cause a conflict of the interests between them. An investigation was conducted to determine the relationship between managerial ownership and performance in the lodging industry and to further determine whether this relationship differs across the two sectors, regular hotels and casino hotels, in the lodging industry; Statistical tests, using regression, revealed size adjusted managers\u27 ownership percentage had a significant relationship with hotels performance in terms of operational and managerial activities and shareholder\u27s relevance, such as profit margin, hotels operating return and hotels return on equity. Performance measured by these ratios is positively, linearly related to managers\u27 ownership. Furthermore, the results of profit margin and operating return did show significant difference between different ownership levels. The findings also indicated that managers\u27 ownership may be a more effective tool in interests alignment for regular hotels than for casino hotels