What is the definition of Chain Hotel in the hotel industry?
A Chain Hotel is a hotel that is part of a sequence or of a group of hotels function by the same corporation or owner. Opposite of a self-governing hotel it is a ‘chain-affiliated’ hotel.
A Hotel Chain therefore is a management corporation, that run a number of hotels having the same name but being located in diverse areas. They can be total or incomplete owners of the hotel and they control their administration, marketing and endorsement.
The terms of organization, the chain offers the same services as a franchise agreement (brand, reservation system etc.) but as well, there is an agency agreement, meaning the brand function the hotel, making all the day-to-day choice on behalf of the owner.
Booking a Chain Hotel gives the guest the profit of steady services and quality (he knows exactly what to expect and avoids ‘bad surprises’) as well as faithfulness program profit (points and bonuses).