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The aim of this research is to explore the positive effect of dynamic capabilities on firm performance in Spanish hotels to further expand the ongoing knowledge of management strategies in a dynamic environment. It also embraces novel issues by linking uncertain changes with the current literature on the COVID-19 crisis. This study also emphasizes the mediation effect of innovation capability as a key hotel strategy in today’s world. The final sample is composed of 212 hotels in Spain. The results reveal a positive and significant influence of dynamic capabilities on hotel performance, which is mediated by innovation capability (partial mediation effect). Both theoretical and practical implication of this research can help navigate the economic consequences of the COVID-19 pandemic.

Hotel strategies in times of COVID-19: a dynamic capabilities approach