Relationship between ESG strategies and financial performance of hotel industry in China: An empirical study

Abstract

Purpose: This study examines the impact of ESG strategies on the financial performance of international hotels in China. Design/Methodology/Approach: Data was collected from 348 valid responses out of 353 surveyed hotels to analyze the relationships between ESG dimensions and financial performance. Findings: The study reveals significant and complementary relationships among the environmental, social, and corporate governance dimensions of ESG in international hotels in China. Conclusion: Implementing ESG strategies positively influences the financial performance of international hotels in China. Research Limitations and Implications: Limitations include the focus on a specific region and the use of self-reported survey data. Future research should consider broader industry and geographical contexts as well as alternative data sources. Practical Implications: The findings emphasize the value of ESG practices for hotel managers in improving financial outcomes. Contribution to Literature: This study provides empirical evidence on the positive financial impact of ESG strategies in the hotel industry, specifically in the context of China, contributing to the existing literature on ESG and financial performance.