.Multinational Companies

Multinational hotels can be owed, leased or acquired under management contract basis. Hotel operators an to leverage  on their management expertise and brand equity without making enormous capital investment. In management contract agreements a fee calculated as a percentage of revenue and / or operating profit is charged.
Hotel Group Number of countries present
Inter Continental 100                Accor 93                        Best Western 85
Starwood 83                            Hilton Group plc 74         Marriott 66
Carlson 66                                Le Meridian 55               Golden tulip 45

Number of countries present of multinational hotel groups ( source: Clarke and chen , 2007)

Positive contributions made by multinational companies include:

• Contributions to the economy  of the country of developmnt by means of investment.
• Multinationals bring with them their brand recognition, star ratings,quality of facilities.
• Consistent products and services
• Local hotel owners can be 'placed on the map' with access to global distribution sstems.
• play a major role in image building and attracting foreign tourists.
• Marketing expertie
• Introduce professionalism to the business

On the down side, these companies might also affect the industry negatively ;

• Single tariff structure might leave it to expensive for locals.
• Revenue leaking out of local economy
• Multinational companies dominating the industry making it difficult for small companies to build up their brands.
• Human resource management issues e.g misunderstanding culture, wage differentiation, friction between local policies and company policies