ABSTRACT
An important characteristic of the hotel industry is that it could be said to be largely vertically disintegrated: ownership, operation and branding of hotels are perhaps more often than not separated. This chapter helps the readers to understand the vertically disintegrated nature of the hotel industry; and recognize how different parties (investors, operators and brands) use the different agreements and operating structures to pursue corporate objectives. It shows how to identify the most important ownership and control issues and challenges involved in different types of operating agreement; and analyse how recent and potential developments in operating structures may be changing the industry landscape. The chapter discusses the most common operating structures in which owners, operators and brands collaborate, and explore the main control issues in lease, management and franchise agreements. It concludes with a reflection on some trends in hotel ownership and control, and a 'mini case' the reader may find helpful as a self-check on comprehension.
