On the Law: The Tangle of Hotel Ownership

With nearly three-quarters of all hotels in the United States operating as franchises and most hotel buildings owned by someone other than the hotel operator, planners rarely know the party they are actually dealing with when they sign agreements for sleeping rooms and meeting space.

That's because the vast majority of all hotel contracts are presented in the “flag name” of the property — that is, the name that's over the hotel's front door.

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