THE IMPACT OF COVID-19 ON THE FINANCIAL PERFORMANCE OF SERBIAN LUXURY HOTELS: A COMPARATIVE ANALYSIS

Keywords:
hospitality sector, profitability, financial reporting, COVID-19

Abstract:
This paper examines the impact of the COVID-19 pandemic on the profitability of luxury hotels in Serbia. Using a sample of 64 four- and five-star hotels and a dataset covering the period 2019–2024, the study applies profitability ratio analysis, including Net Margin, Gross Margin, ROA, and ROE. The findings reveal a sharp decline in financial performance in 2020, reflecting the severe disruptions caused by the pandemic. Although 2021 showed modest signs of stabilization, recovery was slow and uneven across the sample. From 2022 onwards, indicators gradually improved, with ROA and ROE returning to positive values and Net Margin strengthening, though Gross Margin remained volatile. The results suggest that even though Serbian luxury hotels have demonstrated resilience, full consolidation of profitability is still in progress. These insights contribute to the understanding of financial recovery in the hospitality sector and highlight the importance of resilience strategies in times of systemic disruption.

CITATION:

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M. Kljajić, G. Knežević, V. Mizdraković, B. Hadrović Zekić, “The Impact of COVID-19 on the Financial Performance of Serbian Luxury Hotels: A Comparative Analysis,” in FINIZ 2025 - The Importance of Business Agility in the Modern Business Environment, Belgrade, Singidunum University, Serbia, 2025, pp. 29-35. doi: 10.15308/finiz-2025-29-35 

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Kljajić, M., Knežević, G., Mizdraković, V., Hadrović Zekić, B. (2025). The Impact of COVID-19 on the Financial Performance of Serbian Luxury Hotels: A Comparative Analysis. Paper presented at FINIZ 2025 - The Importance of Business Agility in the Modern Business Environment. doi:10.15308/finiz-2025-29-35

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