Question

Hotel management companies came about because:

a. early lease arrangements between hotel owners and independent hotel managers proved inadequate.
b. the Tax Reform Act of 1986 made it more advantageous for hotel owners to hire hotel management companies rather than buy a franchise or run the hotel themselves.
c. individuals who didn't know much about hotels, such as developers and real estate investors, built hotels and wanted experienced people to run them.
d. hotel chains were no longer interested in managing their own properties.

Answer 1

Hotel management companies came about because b. the Tax Reform Act of 1986 made it more advantageous for hotel owners to hire hotel management companies rather than buy a franchise or run the hotel themselves.