Regarding hotel chains, "Wyndham Worldwide is the biggest hotel chain in the world by the number of hotels, having 8,092 hotels in 66 different countries found on six continents" (Chepkemoi, 2019, para 2). Wyndham is followed by Choice Hotels, with 6,429 hotels. Marriot International has 5,974 hotels, InterContinental Hotels Group has 5,070, and Hilton Worldwide ranks #5 with 4,727.

Requirements

explain key concepts of how the franchising business works and research two of the top 5 hotel chains in the world. Address the following questions

1. Franchising Business
   1. How does the franchising business work in terms of the relationship between the brand owner and the local operator?
   2. Explain franchise fees. Include facts and data regarding initial fees, royalty fees, and any other miscellaneous fees.
   3. How are franchising fees calculated in the lodging industry? What are the average rooms revenue percentage cost?
   4. List at least three advantages and three disadvantages of franchising.
2. Top Hotels Chains in the World
   1. Select two of the top 5 hotels chains in the world.
      • Present a brief history of these two hotel chains.
      • What are the different hotel brands that can be franchised in each one of them?
      • Looking at their portfolio of brands, what is the dominant service segment each hotel chain targets? Limited? Full-service or world class service?