Corporate Structure of Hotel Chains

Hotel chains comprise a large portion of the hospitality industry. Hotel chains can operate under several different themes and styles of service. The corporate structure of a hotel chain typically outlines how the organization will operate.

An organizational structure is often divided by department, process or management chain. Departments can be separated on sales, housekeeping or maintenance. Process structures may include human resources, accounting, marketing or sales. Management chain structures focus on individuals responsible for a number of tasks, which may overlap between managers.

Hotel chains that operate as a franchise operation may have a smaller overall corporate structure, as individual hotel establishments operate as franchises. The corporate structure will have a director over the franchised operations in addition to the hotel's other services.

A corporate structure helps organizations manage the different intricacies of business operations. Business owners, directors or executive managers rarely have the ability to review every aspect of their company. Setting up a management chain allows employees some autonomy to make decisions regarding their department.