Referral chain

A referral hotel chain is a type of franchise where hotels operate independently but maintain affiliation with a chain by meeting specific criteria. The concept originated in the early 1930s, promoting cabins and tourist courts that later evolved into standardized motels. These chains allowed independent properties to collaborate on marketing and standards. For example, United Motor Courts, founded in 1933, published guidebooks for its members, while Quality Courts United emerged in 1939 as a splinter group focusing on modernization. Best Western Motels, established in 1947, became a prominent referral chain in the western U.S.

By the 1950s and 1960s, other chains like Superior Courts United and Budget Host gained prominence. However, many of these independent referral chains transitioned into franchises or disappeared by the late 1980s, as franchise chains dominated the market. Best Western remains a notable exception, operating with centralized systems while staying member-owned.

In Europe, referral chains, often marketed as brands, continue to thrive. Chains like Logis (formerly Logis de France) compete with Best Western, which has expanded into the European market. Independent hotels in Europe traditionally outnumber chain hotels, and referral chains play a crucial role in their survival and competitiveness against larger franchises.