Pearson New International Edition International pcl tp indd 1

Partnership composed of organizations such as corporations, governments, or other
entities, that is formed to develop a lodging brand or property.
The franchised hotel can be operated by the independent operator, the franchise
company (franchisor), or by a management company.
FRONT OFFICE SEMANTICS
Management company:
Organization that operates one or more hotels for a fee. Sometimes called a
contract company or a contract management company.
Figure 9 also indicates that a hotel property may not be franchised; it can be
operated without affiliation to a franchisor. Nonfranchised properties are typically
owned by one or more persons (independents) who operate the property or retain the
services of a management company for day-to-day operation.