SITE ILOCAT60N Of LA QUiNTA MOTOR INNS

ession analysis is an extremely flexible tool that can aid decision aking in many areas. Kimes and Fitzsimmons (I 990) describe how it has been used by La Quinta Motor Inns. a moderately priced hotel chain oriented toward serving the business traveler. to help make site location decisions. Location is one of the most important decisions for a lodging firm. All hotel chains search for ideal locations and often compete against each other for the same sites. A hotel chain that can select good sites more accurately and quickly than its competition has a distinct competitive advantage. Kimes and Fitzsimmons. academics hired by La Quinta to model its site location decision process, used regression analysis ..They collected data on 57 mature inns belonging to La Quinta during a three-year business cycle. The data included profitability for each inn (defined as operating margin percentage-profit plus depreciation and interest expenses. divided by the total revenue), as well as a number of potential explanatory

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