What does the term 'franchise' specifically imply in the context of hotel operations?

In the context of hotel operations, the term 'franchise' specifically implies that a hotel is operated by a third party under the brand name and business model of a larger company or chain, typically in exchange for a fee. This arrangement allows independent hotel owners to leverage the brand's established reputation, marketing resources, and operational guidelines while maintaining some level of autonomy in managing the property.

Franchising is a popular model in the hotel industry as it provides benefits such as access to a recognized brand, which can attract customers, and the support from the franchisor in terms of training, marketing, and operational procedures. While the franchisee operates the hotel, the brand owner retains certain ownership rights over the brand and its standards.

This understanding differentiates franchised hotels from other models such as outright ownership, where a chain hotel would be fully owned by the company, or independent hotels that operate without any affiliation to larger chains or brands. Franchising offers a blend of independence for the operator while still benefiting from association with a larger brand, enhancing both market reach and guest appeal.