The tourism sector is the key driver of the Spanish economy, especially the hotel industry. Due to different reasons, Spanish hotel chains have started their internationalization process. In the other part of the world, Asia Pacific, is considered a region with an enormous tourism potential, in which the region receives a great number of international travellers every year. Additionally, due to the increase of the middle class, the number of domestic tourists has also increased. The study on the choice of entry mode is a topic very much discussed in the existing literature, since its choice is a key decision in the process of internationalization, and many factors influence this strategic decision. However, the motivation for this thesis is the lack of previous studies on the internationalization of Spanish hotel companies in Asia Pacific.

From this perspective, the objective of this master's thesis in International Business is to gain a deeper understanding of the company specific and foreign country specific factors that influence a particular Spanish hotel chain in choosing an entry mode for internationalization into Asia Pacific. The Majorcan hotel chain, Meliá Hotels International, has been selected due to having its main focus the growth expansion into Asia Pacific.

From here, a conceptual model has been developed on how different factors influence the decision of equity or non-equity entry modes. The study follows a qualitative research design and case study. The data has been collected through interviews and various documents published by Meliá. The major finding is undoubtedly Meliá's strong decision to follow a business model based on asset light and to establish itself in Asia Pacific by operating under management contracts. But the results also suggest factors that go beyond the characteristics of a company, such as foreign country factors, also accumulation of great influence, as specifically is the case for Meliá Hotels International into Asia Pacific.