Effects of Armed Conflict on Hotel Performance and Resilience: Evidence from Star-Rated Hotels in Bahir Dar City, Ethiopia

This study examines how armed conflict has affected the financial and nonfinancial performance of star-rated hotels in Bahir Dar City, Ethiopia, from 2022 to 2024. Employing a mixed-method approach with explanatory and descriptive designs, data were collected from 175 respondents through structured questionnaires and semi-structured interviews. Quantitative data were analyzed using descriptive and inferential statistics, including multiple linear regression, while qualitative data underwent thematic analysis. The results show that reduced customer income, limited mobility, conflict-related costs, infrastructure damage, and weak administrative coordination significantly harm hotel performance. Non-financial impacts include employee layoffs, reduced market segmentation, stagnated expansion, and declining customer satisfaction. Despite adopting adaptive strategies such as flexible pricing, cost reduction, and safety measures, hotels receive insufficient governmental support. The study emphasizes the need for peacebuilding, financial intervention, and robust crisis management frameworks to strengthen the resilience and sustainability of Ethiopia’s hospitality industry in conflict-affected regions.