Relationship between Diversification Strategy and Financial Performance and Stability in the Lodging Industry in the United States

Over the past decade, the impact of diversification on firm performance has been controversial. Advocates have argued that diversification has a significant impact on firm's performance while opponents have argued that there is no significant difference in firms' performance between diversified and itndiversified companies. In this study, the impact of diversification straieg)- on financial performance and stability was examined fo r the lodging companies in the United States. The results of this study confirmed the argument of opponents of the effects of diversification strategy.