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Hotel chains had increasingly gained market dominance and power, giving difficult times to independent hotel operators. Having multiple brands for a hotel company was not uncommon, and the market was generally segmented using price range and degree of luxury/economy.
There observed an increasing demand for limited-service hotels from budget travelers. The demand in general was also in the rise after the downturn in the early 1990s. According to a survey conducted in the same year, customers preferred brands affiliated with hotel chains over independent hotel operators. It was also found that to create a fresh brand would incur less cost and be more readily preferred by the customers than reinventing the existing brands...
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