EFFECT OF COST RESTRUCTURING ON PERFORMANCE OF STAR RATED HOTELS IN NAIROBI CITY COUNTY, KENYA
EFFECT OF COST RESTRUCTURING ON PERFORMANCE OF STAR RATED HOTELS IN NAIROBI CITY COUNTY, KENYA
Judith Akoth Osoo - College of Human Resource and Development, Jomo Kenyatta University of Agriculture and Technology, Kenya
Antony Sije - College of Agriculture and Natural Resources, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The main objective of the study was to establish the effect of cost restructuring on performance of star rated hotels in Nairobi City County, Kenya. The study was anchored on Transaction Cost Theory, Agency Theory, Social Exchange Theory, and Planned Change Theory. A descriptive research design was employed in the study. The study targeted 44 rated hotels operating in Nairobi City County as outlined by Tourism Regulatory Authority. The Study was carried out only in 40 hotels. The unit of observation comprised of one manager, and one supervisor in the hotels making a total of 80 respondents. Primary data was collected through a five-point likert questionnaire. Both inferential and descriptive statistics were employed in analyzing the collected data. Both SPSS software and MS Excel were used in generating the statistics. The study results and findings of the analysis were presented in form of tables and figures. The study established that cost restructuring bears a positive and significant effect on performance of rated hotels operating in Nairobi City County. The study provides the recommendations to the management of the star rated hotels to enhance the levels of cost restructuring process since the practice bears a positive and significant effect on performance of the hotels.
