Dynamics between brand diversification and segment diversification on firm value

Developing a thick portfolio of multiple brands across different levels of services is unique to the lodging industry. Therefore, consideration of brand diversification necessitates thoughts of segment diversification to the lodging portfolio development. Although various diversification strategies have investigated in relation to a firm's performance, segment diversification has received insufficient attention. This article aims to shed light on that. This article finds evidence that brand diversification increases lodging firm value more significantly when segment is diversified at the same time. When a company diversifies brands within a focused lodging segment, increase in firm value was insignificant.