Franchised or Managed hotel property
A hotel owner-operator makes a franchise deal in which he enters into an agreement with a hotel company (Franchisor) and receives the many benefits of belonging to a hotel company. The benefits include being part of the reputation of the Franchisor, access to the chain reservation system, easier financing, sales and marketting expertise of the Franchisor, technical assistance in purchasing, interior design and architectural planning. The hotel owner operator still runs his own hotel but pays a fee to the Franchisor.
The owner turns his property over to a hotel company. This company may it be Trust House Forte or Moevenpick or one of many other reputable hotel company runs the operation on behalf of the owner to established standards and conditions.