Financial Determinants and Financial Performance Heterogeneity in Croatian Hotel Companies: A Strategic Management Perspective

Understanding the financial characteristics associated with hotel performance is important for competitiveness and managerial decision-making. However, empirical evidence based on objective company-level financial indicators remains limited, particularly in the Croatian hotel sector. This study examines the relationships between labour productivity, firm size, and profitability, as well as financial performance heterogeneity among Croatian hotel companies. Using accounting data for 47 large hotel companies in 2024, the study employs descriptive statistics, Spearman correlation analysis, robust multiple regression, sensitivity analysis, and K-means cluster analysis. The results reveal considerable heterogeneity in financial performance. Labour productivity, measured by value added per employee, is strongly positively associated with profitability in the correlation analysis. However, neither labour productivity nor firm size is statistically significant at the 5% level in the full-sample regression model. Sensitivity analysis excluding one verified but highly influential observation identifies a significant positive association between labour productivity and profitability, indicating sensitivity to firm-level heterogeneity. Cluster analysis identifies two distinct performance profiles, with relatively smaller companies exhibiting higher average labour productivity and profitability. The findings highlight the importance of considering labour productivity, firm size, and firm-level heterogeneity when assessing hotel financial performance and provide a basis for managerial benchmarking and longitudinal research.