Two different hotels on successive evenings

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Reference no: EM132214172

A traveler driving along Interstate 36 stops at two different hotels on successive evenings. Explain, and differentiate between, the signs posted by the front desk in terms of the text discussion about ownership, management, franchising, and joint ventures.

Hotel A: This Hampton Inn is owned by Jerome J. Vallen and Sons, Inc., under license from Promus Richfield Hotel Management.

Hotel B: This Hampton Inn is owned by Promus, Jerome J. Vallen, General Manager.

Hotel A, which is owned (ownership is what the text identifies as "one party to the deal") by the Vallen family, is managed by Richfield Management Company (another party to the deal), but flies the flag, the logo, and utilizes the reservation system of the franchiser, Promus Hotels (still another party to the deal).

Hotel B is a much simpler structure. Promus Hotels is the owner, using its own identification and logo and managing the property itself, having hired Vallen as the general manager to do that managing job. Vallen is an employee of Promus.

Reference no: EM132214172

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