Influence of local environment on exit of accommodation establishments

This study investigates how the local environment (access to fibre broadband infrastructure, local competition and seasonality) alongside commonly established factors such as size, age and price, influences exit of accommodation establishments during a period of ten years. Cox proportional hazard model estimations based on census data for the accommodation sector show that the supply of fibre broadband infrastructure on the premises, or close by, is of importance for the continuation of the establishment. However, size is the solely most influential factor for longevity of accommodation establishments, followed by seasonality (increasing the risk of exit), fibre broadband supply (except for city hotels) and the price level. Local competition is only marginally relevant, for city hotels. In addition, the estimations show no clear traces of the financial crisis.