Determinants of Hotel Selection by International Business Guests the Case of Star Rated Hotels of Addis Ababa

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


Despite significant share in room occupancy, little is understood concerning factors influencing selection of hotels by international business guests of rated hotels in Addis Ababa. By comprehending to guests’ criterions of selection, hotels can achieve repeat and also get new business. Otherwise, then they must be ready to endure low occupancy levels and eventually diminished business. The study aimed to identify the factors for hotel selection, level of their importance and future expectations regarding these factors by international business guests. The research is beneficial to mainly hoteliers in gaining a superior understanding of the elements influencing guests’ hotel selection. The study adopted a cross-sectional descriptive survey design. Respondents were systematically selected from the hotel they stayed in for one or more nights. By considering hotels’ average daily occupancy, sample of 272 was taken. Primary data was collected by a structured questionnaire and analyzed by the use of SPSS version 22. The analyzed data was presented in the form of tables, graphs, histograms and pie charts. The findings indicated that, hotel’s location matters most in business guests’ hotel selection with (μ=4.72, sd. =0.35). Additionally, hotels’ location and price need to be improved for business guests’ next visit. The study recommends that hoteliers should do their best in making their property preferable by meeting attributes guests deem as important. This could be done by making the hotel easily accessible for different transportation modalities and prioritizing hygiene issues of the premises. They also need to take a gaze of their pricing system which guests wish to see improved for their next trip.


A Thesis Submitted to Addis Ababa University, College of Business and Economics, in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration (MBA)


Addis Ababa, Business guest, Hotel selection, Star rated hotels