INFLUENCE OF TURNAROUND STRATEGIES ON PERFORMANCE OF FOUR STAR-RATED HOTELS IN THE COASTAL REGION OF KENYA

Abstract

The study's general objective focused on the influence of turnaround strategies on the performance of four-star-rated hotels in the coastal region of Kenya. The specific objectives of the study were: to establish the influence of organizational restructuring on the performance of four-star-rated hotels in the coastal region of Kenya, to identify the influence of cost efficiency strategy on the performance of four-star-rated hotels in the coastal region of Kenya, to determine the influence of repositioning strategy on the performance of four star-rated hotels in the coastal region of Kenya, to assess the influence of marketing strategy on the performance of four-star-rated hotels in the Coast region of Kenya and to evaluate the moderating influence of organizational learning on turnaround strategies and the performance of four star-rated hotels coastal region of Kenya. Grounded in Contingency, Transaction Cost, Market Positioning, Brand Equity, Organizational Learning, and Goal-Setting theories, the study used a descriptive research design. The target population included 319 managers from four-star hotels, with 177 respondents selected through stratified random sampling. Data was collected through questionnaires and analyzed using SPSS 27. Findings indicated that organizational restructuring had the least influence on hotel performance, with a Beta coefficient of -0.035, signifying a minimal and insignificant influence. Cost efficiency strategy was the third most influential factor, with a Beta coefficient of 0.153, suggesting a positive relationship between cost management and the performance of hotels. The Repositioning strategy showed a moderate positive correlation with the performance of the hotel, marked by a correlation coefficient of 0.349 (p-value = 0.000), highlighting its significance in meeting customer needs and preferences. Marketing strategy exhibited the strongest positive and statistically significant relationship with the performance of the hotel, with a correlation coefficient of 0.467 (p-value = 0.000), emphasizing the critical role of marketing in enhancing brand visibility, attracting customers, and fostering loyalty. Organizational learning had a weak positive but insignificant correlation with the performance of the hotel, with a correlation coefficient of 0.135 (p-value = 0.098), indicating it is not a strong predictor of performance. The study recommends prioritizing innovative marketing campaigns due to their substantial influence on the performance of hotels. Implementing customer relationship management systems can enhance guest relationships and encourage repeat business. Investments in product diversification, improved customer service, and flexible pricing strategies are also advised to maximize performance. Overall, the study underscores the importance of marketing and repositioning strategies in boosting the performance of four-star hotels in Kenya's coastal region