Which entity is classified as a "Parent Company" consisting of multiple chains?

Prepare for the CHIA Hotel Industry Foundations Exam. Enhance your knowledge with comprehensive flashcards and multiple choice questions, each with detailed explanations. Ace your exam!

The correct answer is a parent company that oversees a number of hotel brands or chains, and in this case, Choice is an example of such an entity. Choice Hotels International is known for its extensive portfolio of lodging brands, which includes several widely recognized chains such as Comfort Inn, Quality Inn, and Econo Lodge. Being a parent company means that it manages and supports the operations of various hotel brands under its umbrella, providing resources like marketing, training, and technology systems to enhance their performance and maintain brand standards.

The other options represent individual hotel brands rather than parent companies. For instance, Holiday Inn Express and Hampton Inn are specific hotel chains that operate under larger parent organizations but do not themselves encompass multiple chains. Motel 6, too, is a branded hotel chain under the parent company that also focuses on providing budget-friendly lodging. Understanding the distinction between parent companies and individual hotel chains is crucial for comprehending the hotel industry's structure.

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