Main Article Content

Ghada Salem


new hotels, investment, crisis, lebanon, political conflict, insecurity


Purpose of the study: This research aims at understanding why investments in new hotels sustained in Lebanon during 2012 -2016 despite the unstable political situation that reigned over the country.

Methodology: It mobilizes a survey based on a total population sample of new hotels to explain the phenomenon and identify its determinants.

Main findings: Investments in new hotels in Lebanon during this crisis period are of a real estate form, encouraged by a number of factors, mainly the low cost of construction materials, the availability of a low waged Syrian manpower, the presence of investments loans and incentives from IDAL, a public agency and KAFALAT, a private one. These new hotels will operate as customized lodging facilities to cope with the growing AirBnB trend from one hand and with the increased demand from middle to high social class families of Syrian refugees.

Limitations: Limitations were mainly at the methodological level. Access to data at the Lebanese Ministry of Tourism and collection of data through questionnaires were the major challenges.

Implications: The analysis of the phenomenon allows a better understanding of its elements, factors and process. Therefore, concerned parties could benefit from it and take appropriate corrective measures where needed and/or adapt existing measures to changes in the hospitality industry in Lebanon. Also, researchers could connect the results to the literature related to post-crisis tourism to reveal promising research tracks.

Originality/Novelty of the study: Theoretically, crises periods in a destination are not favorable for hotels investments. Yet, Lebanon witnessed during the critical period of 2012 – 2016 the construction of new hotels all over its territory. This phenomenon raises questions about the drives of these investments, their source of capitals and their process of decision making. The findings depict new insights regarding investments in new hotels during crisis period. They are basically real estate investments, virtually designed to be hotels but operate as customized lodging facilities. 


Download data is not yet available.
Abstract 91 | PDF Downloads 59


1. Avram, E. L., Savu, L., Avram, C., Ignat, A.B., Vancea, S and Horja, M.L. (2009). Investment decision and its appraisal. Annals of DAAAM, 20(1), 1905-1906.
2. Breuer, A., Lesconi-Frumuşanu, N.M and Bilianaciurea, J. (2010). Investments and Economic Recovery. Annals of the University of Petroşani, Economics, 10(1), 29-36.
3. Culp, C.L. (2001). The risk Management process Business strategy and Tactics [online]. New York: Wiley, 606 p.
4. DeRoos, J. and Corgel, J. (1996). Measuring lodging property performance. Cornell Hotel and Restaurant Administration Quarterly, August, 20-7.https://doi.org/10.1177/001088049603700417
5. Gu, Z. (1994). Hospitality Investment Return, Risk, and Performance Indexes: a Ten-Year Examination. Journal of Hospitality & Tourism Research,17(3), 17-26.
6. Harcourt, G.C, Karmel, P.H and Wallace, R.H. (1967). Economic Activity. New York: Cambridge University Press. https://doi.org/10.1017/CBO9780511560033
7. Kim, C. & Hwang, P. (1992). Global Strategy and multinationals entry mode choice. Journal of International Business Studies, 23(1), 29-53.https://doi.org/10.1057/palgrave.jibs.8490258
8. Kundu, S.K. and Contractor, F.J. (1999). Country location choices of service multinationals: An empirical study of the international hotel sector. Journal of International Management, 5, 299-317.https://doi.org/10.1016/S1075-4253(99)00017-4
9. Masse, P. (1959). Le choix des investissments. Critères et méthodes. Finance et économie appliquée. Volume VI. Paris : Dunod, 489p.
10. Newell, G. and Seabrook, R. (2006). Factors influencing hotel investment decision making. Journal of Property Investment & Finance, 24(4), 279-294. https://doi.org/10.1108/14635780610674499
11. Poirier, R. A. (1997). Political risk analysis and tourism. Annals of Tourism Research, 24(3), 675-686. https://doi.org/10.1016/S0160-7383(97)00019-4
12. Pop, M. G. S. (2012). The investment process and its financing. Annals of the University of Petroşani, Economics, 12(2), 193-204.
13. Property Council of Australia (2003). New Investment Frontiers: An Industry Action Plan For Reshaping Hotel Investment. Sydney: PCA.
14. Rodriguez, A. R. (2002). Determining factors in entry choice for international expansion. The case of the Spanish hotel industry. Tourism Management, 23, 597-607. https://doi.org/10.1016/S0261-5177(02)00024-9
15. Rushmore, S. (2002). Hotel Investments Handbook. New York: Previously published in part as Hotel Investments: A Guide For Lenders And Owners.
16. Savvides, S. (1994). Risk analysis in investment appraisal. Project Appraisal, 9(1), 3-18. https://doi.org/10.1080/02688867.1994.9726923
17. Shvetsova, N. (2014). Genesis and Evolution of Concept “Investment”. Skhid, 132(6), 61-66.
18. Stiglitz, J. E. and Walsh, C. E (2005). Economics (4th ed.) [on line]. Norton & Company, 971p.
19. Suominen, A. (2003). Riskien Hallinta. Helsinki: Werner Söderström Osakeyhtiö.
20. Virlics, A. (2013). Investment Decision Making and Risk. Procedia Economics and Finance, 6, 169-177. https://doi.org/10.1016/S2212-5671(13)00129-9
21. Wildasky, A. (1988). Searching for Safety [on line]. New Brunswick: Transaction Publishers, 253 p.
22. Younes, E. and Kett, R. (2007). Hotel investment risk: What are the chances? Journal of Retail Leisure Property, 6(1), 69 – 78.https://doi.org/10.1057/palgrave.rlp.5100049