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The Structure of the Hotel Industry from Book "The Business of Hotels"
International hotel operations
In the broad sense, the term describes hotel groups that operate in more than one country, but it is possible to distinguish between two main types. One is represented by what are essentially national companies with a head office in a particular country, which engage to great extent in hotel operations in that country and in other countries. The other type of multinational companies established by airlines and other interests, which operate hotels in different countries, and in whose case the location of the head office may not be of particular significance.
Many major hotels are not owned by the hotel operator; commonly, a separate company is established to own each hotel. Typically each owning company has a major equity investor but there may be also one or more minority equity investors and they may include the hotel operating company. The owning company makes an agreement with the hotel operating company, which may be for: a joint venture,a lease, a management contract and a franchise.
International financing of hotel operations takes place through: Multinational companies, Inter-governmental organizations, such as the World Bank Group. Each hotel in a particular country operates in its own environment with it's own markets and market conditions, operating conditions, customs and practices; against the background of the country's economic, political and social systems; with its own licensing, labour, tax and other laws.
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