What type of company manages a hotel on behalf of another party in exchange for payment?

A management company is an entity that specializes in overseeing the operations of a hotel on behalf of the property owner. This arrangement allows hotel owners to benefit from the expertise of the management company without having to manage the daily operations themselves. The management company typically receives a management fee based on the hotel's revenue, and they are responsible for various tasks such as staffing, marketing, maintenance, and guest services.

This structure is beneficial for owners who may not have the experience or resources to run a hotel effectively, as well as for management companies that can leverage their knowledge and industry relationships to maximize profitability. Given that management companies often operate multiple properties, they can implement best practices and efficiencies that individual owners might not achieve on their own.

In contrast, a parent company refers to a larger organization that owns multiple subsidiary businesses, but it does not specifically reflect the day-to-day management of hotels. An independent hotel usually represents a standalone property without affiliation to a larger corporate entity or brand, which differs from the concept of a management company. Lastly, a chain typically refers to a series of hotels that are affiliated with a brand and managed under a common name, but they may either be owned by the brand or managed through various operators, which complicates the definition compared to a dedicated management