Source: www.247siam.com
Hotel chain is an enterprise that administrates, through a unique management a number of hotels located in different areas. They can be total or partial owners of the hotel and they manage their administration, marketing and promotion. The global hotel industry is dominated by hotel chains. It is about a third (over 5 million) of world hotel rooms were controlled by to 300 hotel chains and 3.9 million hotel rooms were controlled by the top ten hotel chains (Hotels’325, 2008)
The world top 15 hotel chain companies in the most countries (2007) are InterContinental Hotel Groups (IHG), Starwood Hotels and Resorts Worldwide, Accor, Hilton Hotel Corp., Best Western International, Carlson Hospitality Worldwide, Marriott International, Wyndham Hotel Group, Golden Tulip Hospitality/THL, The Rezidor Hotel Group, Global Hyatt Corp., Choice Hotel International, Club Mediterranee, Four Season Hotels and Resorts, and TUI AG/TUI Hotels and Resorts. In 2008, there are not so many changing of the position, but TUI AG/TUI Hotels and Resorts not in the top 15 list. The position was replaced by Fairmont Raffles Holdings International in the 14th position and Four Season Hotels & Resorts in the 15th position (Strauss, 2007; Gale, 2008).
The companies that manage the most hotels in 2008 are Marriot International (962 hotels), followed by Extended Stay Hotels (686 hotels), and IHG (InterContinental Hotels Group (539 hotels) in the third rank which is in the year 2007 in the fourth position. The companies that franchise the most hotels in 2008 are Wyndham Hotel Group (6,544 hotels), Choice Hotels International (5,570 hotels), and IHG (InterContinental Hotels Group) with 3,392 hotels. There is no changing for the first third rank compare to the year 2007 (Strauss, 2007; Gale, 2008).
According to the market segment, the management contract is the preferred and only mode of development in the luxury segment (Chen, Jean Jinghan and Irini Dimou., 2004). Management contract have been also the prevalent mode of development in the upscale segment, whereas 62.1% of the developed hotels are operated under management contract, 27.9% under company ownership, and only 10% under franchising. In the middle market, the majority of hotel unit has been developed under franchising (56.3%), while management contract have also used to a considerable degree (34.5%), and only 9.2% under franchising.
Regarding the budget market, the vast majority consist of franchised unit 88.4%, where as only 6.3% under company ownership and 5.3% under management contracts. The vast majority modes of development within each market segment is franchising (54.2%), where as 32.9% under management contract and only 12.9% under company ownership. The highest the market segment of operation, the higher the specialized skills and managerial expertise required for hotel to operate according to standard, therefore, the more likely the hierarchical mode will be used for their development (Chen, Jean Jinghan and Irini Dimou, 2004).