The evolution of hotel chains between 1920 and 1950 was driven by

  1. Hausman, Hertner, and Wilkins, Global Electrification; Jones, British Multinationals; Jones, Multinationals and Global Capitalism; Wilkins, The Maturing of Multinational Enterprise; Wilkins, The History of Foreign Investment in the United States before 1914; and Wilkins, The History of Foreign Investment in the United States before 1914–1945.

  2. Jones, ‘Banks as Multinationals’; Jones, Multinationals and Global Capitalism, 76–108.

  3. Godley, ‘Foreign Multinationals’, 80; Jones, Merchants to Multinational, 353; and Miller and Arvind, ‘Patterns in the Expansion of US Banks’, 359.

  4. Altinay, ‘The Internationalisation of Hospitality Firms’, 398–409; Contractor and Kundu, ‘Franchising versus Company-Run Operations’, 28–53; Dunning and McQueen, ‘The Eclectic Theory of International Production’, 197–210; Dunning and McQueen, ‘Multinational Corporations in the International Hotel Industry’, 69–90; and Eyster, ‘Hotel Management Contracts in the US’, 21–33.

  5. Jones, Multinationals and Global Capitalism, 18–27. This period of hotel companies’ entry into the international market is in marked contrast to other industries – manufacturing and banking – which enjoyed international expansion in what is being increasingly seen as the first age of globalisation, c. 1890–1914. It is noted that manufacturing growth was driven by the Industrial Revolution from the 1820s. This in turn had driven the international trade growth of around 3.5% per annum for the rest of the century. Jones, Multinationals and Global Capitalism, 18; and Nayyar, ‘Globalisation, History and Development’, 138. Similarly, relaxation in restrictions on capital movements across national borders and a widespread adoption of the Gold Standard fostered the market integration in global capital markets.

  6. InterContinental Hotel Group, ‘Factsheet Intercontinental’. There are 115 IHC hotels worldwide, outside of North America, at March 2011. It is important to note that the IHC discussed in this research should not be mistaken for the current InterContinental Hotel Group (IHG) which operates different hotel brands, including the brand name InterContinental Hotels. However, these two names are closely linked. IHC was sold as a hotel chain in 1981, by Pan Am to a UK company, Grand Metropolitan (GM), and was then sold by GM in 1988 to a Japanese conglomerate, Seibu Saison Group. In 1998, Bass plc, a UK brewing company, bought over IHC. Bass plc continued to grow its hotel business and, in 2003, re-structured its company by de-merging its hotel and pub divisions, and assuming the corporate name of IHG for its hotel divisions. For a detailed development of IHC and IHG, see Mary Quek, ‘The Development of Four Hotel Companies in the UK, 1979–2004’, 188–222. For a more condensed discussion of the development of IHC and IHG, see Quek, ‘Comparative Historical Analysis of Four UK Hotel Companies’, 147–73.

  7. Hilton Hotels & Resorts, ‘Explore Hilton’. According to the author's calculation from the information collected from the current Hilton Hotel Group's website, there are 391 Hilton Hotels worldwide, outside North America, in July 2011.

  8. Starwood Hotels & Resorts, ‘Sheraton Hotels & Resort’. There are 255 Sheraton Hotels worldwide, outside North America, at July 2011. The Sheraton Hotel chain was acquired by Starwood Hotels & Resorts Worldwide, Inc. in 1998.

  9. InterContinental Hotel Group, ‘Factsheet Holiday Inn’. There are 422 Holiday Inn Hotels worldwide, outside North America, at July 2011. This figure excludes extended brand names, Holiday Inn Express and Holiday Inn Vacation Clubs.

 10. Terpstra and Yu, ‘Determinants of Foreign Investment of US Advertising Agencies’, 33–46; Agarwal and Ramaswami, ‘Choice of Foreign Market Entry Mode’, 1–27; Dunning, ‘Multinational Enterprises and the Growth of Services’, 5–39; and Miller and Parkhe, ‘Patterns in the Expansion of US Banks’, 359–89.

 11. Bouquet, Hébert, and Delios, ‘Foreign Expansion in Service Industries’, 35–46; Ekeledo and Sivakumar, ‘Foreign Market Entry Mode Choice of Service Firms’, 274–92; and Erramilli, Krishna, and Rao, ‘Choice of Foreign Market Entry Modes’, 135–50.

 12. Terpstra and Yu, ‘Determinants of Foreign Investment’, 33–46.

 13. Pla-Barber, Sanchez-Peinado, and Madhok, ‘Investment and Control Decisions in Foreign Markets’, 736–53.

 14. Anderson and Gatignon, ‘Modes of Foreign Entry’, 1–26; and Brouthers and Brouthers, ‘Why Service and Manufacturing Entry Mode Choices Differ’, 1179–204.

 15. Peinado and Pla Barber, ‘Mode of Entry in Service Firms’, 161.

 16. Bouquet and Delios, ‘Foreign Expansion’, 35–46; Clancy, ‘Commodity Chains, Services and Development’, 122–48; Dunning, ‘Multinational Enterprises’, 5–39; Ekeledo and Sivakumar, ‘International Market Entry Mode Strategies’, 68–101; Enderwick, ‘Some Economics of Service-Sector Multinational Enterprises’, 3–34; and Erramilli, ‘Entry Mode Choice in Service Industries’, 50–62.

 17. Dunning and Lundan, Multinational Enterprises and the Global Economy, 268.

 18. Buckley, ‘Business History and International Business’, 316.

 19. Teece, Pisano, and Shuen, ‘Dynamic Capabilities and Strategic Management’, 509–33.

 20. Buckley, ‘Business History and International Business’, 307–33; and Helfat and Peteraf, ‘Understanding Dynamic Capabilities’, 91–102.

 21. Boddewyn, Halbrich, and Perry, ‘Service Multinationals’, 41–57; Ekeledo, and Sivakumar, ‘International Market Entry Mode’, 68–101.

 22. Borer, The British Hotel Through the Age, chapters 3–7; and Taylor, Ritzy: British Hotels 1837–1987, 19–30.

 23. Armstrong and Williams, ‘The Steamboat and Popular Tourism’, 61–77.

 24. Borer, The British Hotel, 248–54; Jakle, Sculle, and Rogers, The Motel in America, 23–56; and Sandoval-Strausz, Hotel: An American History, 111 and 133–5.

 25. Heafford, ‘Between Grand Tour and Tourism’, 25–47.

 26. Shoval and Cohen-Hattab, ‘Urban Hotel Development Patterns’, 908–25; and Thomas Cook, ‘Thomas Cook History’.

 27. Shoval and Cohen-Hattab, ‘Urban Hotel Development’, 910.

 28. Emmanuel, ‘The Grand Old Dame’; and Peleggi, ‘Consuming Colonial Nostalgia’, 255–65.

 29. Emmanuel, ‘The Grand Old Dame’; Janssen, ‘History Lives in Rangoon’; Peleggi, ‘Consuming Colonial Nostalgia’, 255–65; and Syah, ‘Majapahit Mandarin, the Boutique Hotel of Surabaya’.

 30. Sandoval-Strausz, Hotel: An American History, 119–20.

 31. Ibid., 121.

 32. Taylor, Ritzy: British Hotels, 119–20.

 33. Wavre, ‘Swiss Investment in Italy’, 94.

 34. Simmons, ‘Railways, Hotels and Tourism’, 201–22; and Sandoval-Strausz, Hotel: An American History, 73–81.

 35. Both hotel chains gained legitimacy on the international level and became institutions in the international hotel arena due to their quality products and services. HHI and IHC were the major international hotel chain developers from the late 1940s to late 1950s.

 36. Hilton Hotel Corporation, ‘Managers’ Meeting’; and Potter, A Room with a World View, 9–21.

 37. Fellows, ‘Israel Rolls out the Carpet for a New Hotel’; ‘Sheraton Acquired Cardy Hotel Chain’, New York Times, February 1, 1950, 45; and ‘News and Notes from the Field of Travel’, New York Times, January 17, 1960, X33.

 38. ‘Now It's Show Business for Holiday Inns’, Hotel & Motel Management, January 1968, 11.

 39. Wilkins, ‘Multinational Enterprise in Insurance’, 334–63.

 40. Calvo, ‘State, Firms and Technology’, 455–73.

 41. Boldt-Christmas, Jacobsen, and Tschoegl, ‘The International Expansion of the Norwegian Banks’, 79–104.

 42. Kipping, ‘Consultancies, Institutions and the Diffusion of Taylorism’, 67–83; and Kipping and Saint-Martin, ‘Between Regulation, Promotion and Consumption’, 449–65.

 43. ‘11 Hotels to Rise in Latin America for US Tourists’, New York Times, July 19, 1947, 1.

 44. Potter, A Room with a World View, 9. Rockefeller worked under the then Secretary of State, Edward Stettinius Jr., the former US Steel executive, who was Trippe's brother-in-law.

 45. Ibid., 9.

 46. ‘Interview with John B. Gates by John C. Leslie’, September 9, 1971 in Folder 9, Box 20, Pan American World Airways, Inc. Records, Special Collections, University of Miami Libraries, Coral Gables, Florida. According to an interview conducted by John C. Leslie with John B. Gates (IHC's chairman between mid-1959 and January 1971), there was no actual documentation of John B Gates knowing of any records of correspondence between Trippe and President Roosevelt. It was highlighted in this conversation that this dialogue could be found in an article published on September 25, 1950 in Time magazine (‘HOTELS: Girdling the World’, Time, September 25, 1950, http://www.time.com/time/magazine/article/0,9171,813384,00.html). ‘At a White House breakfast one day in 1944, Franklin Roosevelt and Pan American Airways’ Juan Terry Trippe put their heads together over Latin America's impending dollar shortages. One way to solve them, said Roosevelt, was to increase tourist traffic from the US by supplying better hotels for travellers. Since any increase in travellers would mean a boost for Pan Am as well, Juan Trippe got right to work.’ Potter, A Room with a World View, 51. John B. Gates and Trippe were golf partners and graduated from Yale University. John B. Gates was invited by Trippe to join Pan Am as vice-president of Finance and became IHC's chairman in mid-1959.

 47. Pan American, ‘Intercontinental Hotels Corporation Observes 15th Anniversary’, May 26, 1961; and Potter, A Room with a World View, 9.

 48. Potter, A Room with a World View, 9. The Chief Executive of Statler Hotel Corporation found the overseas projects too expensive. Moreover, the Corporation's limited resources were directed to grow its US market as the war ended.

 49. Potter, A Room with a World View, 10–11.

 50. Pan American, Correspondence from Wayne, C. Taylor, President of Export–Import Bank of Washington to Juan T. Trippe, President of Pan American Airways Corporation, May 24, 1945.

 51. Friedlander, ‘Tourist Increase Aids ERP Abroad’, 66.

 52. Hilton Hotel International, ‘Correspondence: Sgd W. John Kenney of Mutual Security Agency (MSA) to Conrad Hilton’, June 11, 1952. Although HHI was invited to develop a hotel chain in Europe with the privilege of tapping into the Marshall Plan fund, HHI did not develop any hotels under this funding because of the end of the Marshall Plan in 1951 in conjunction with the Vietnam War (1950–53) resulting in the withdrawal of funds made available for hotel developers by the financial support for travel funds.

 53. Pearson, ‘ECA Snarls Pan Am Hotel Plan’, B15.

 54. Friedlander, ‘Tourist Increase Aids ERP Abroad’, 66.

 55. Ibid.

 56. ‘Caribbean Tourism’, New York Times, November 23, 1954, X25.

 57. Szulo, ‘A Programme for Latin America’, X26.

 58. Pan American, ‘Proposed Transatlantic Fare and Service Policy, 1951–1952’, May 4, 1951.

 59. Ibid.

 60. Button, ‘Opening US Skies to Global Airline Competition’, 4–5.

 61. Ibid., 5.

 62. Ibid., 12; and ‘News and Notes from the Field of Travel’, New York Times, January 17, 1960, X35; and Pan American World Airways System, Annual Report, 1945, 11.

 63. Pan American World Airways System, Annual Report, 1948, 11–15; and Pan American, ‘Proposed Transatlantic Fare and Service Policy’.

 64. Pan American World Airways, Annual Report, 1960, 1.

 65. Pan American, Correspondence John B. Gates to Leonard, S Sheriff, Esq., September 19, 1958.

 66. Jones, Multinationals and Global Capitalism, 31.

 67. Pan American, ‘J. Walter Thomson Research for Intercontinental Hotel’, 1956.

 68. Rice, ‘News and Notes from the Field of Travel’, X17.

 69. Godley and Fletcher, ‘Foreign Entry into British Retailing’, 392–400.

 70. Sluyterman, ‘Internationalisation of Dutch Accounting Firms’, 9.

 71. Boldt-Christmas, Jacobsen, and Tschoegl, ‘The International Expansion of the Norwegian Banks’, 99; and Jones, Multinationals and Global Capitalism, 113–14.

 72. Pan American, ‘1948 Sees Record Strides by PAA in Latin America’, January 1, 1948.

 73. Matthews, ‘Latin America Unrest Due to Basic Causes’, E6; Pan American, ‘IHC’, August 11, 1948; and ‘IHC Hotel Project Status’, February 15, 1951.

 74. Pan American, ‘Headcount and Average Room Rate’, August 18, 1959.

 75. Pan American, ‘Summary of Progress’, December 9, 1958.

 76. Ibid.

 77. Potter, A Room with a World View, 65.

 78. Phillips, ‘Two US Attaches ousted by Havana on a Plot Charge’, 1.

 79. Pan American, ‘Intercontinental Hotels Corporation Observes 15th Anniversary’.

 80. Potter, A Room with a World View, 20.

 81. Uttam, ‘US Multinational Involvement’, 48–63.

 82. Anderson and Gatignon, ‘Modes of Foreign Entry’, 1–26; and Brouthers and Brouthers, ‘Why Service and Manufacturing Entry Mode Choices Differ’, 1179–204.

 83. Pan American, ‘Interview with John B. Gates by John C. Leslie’, September 9, 1971. It is a rule of thumb and varied from location to location.

 84. Pla-Barber, Sanchez-Peinado, and Madhok, ‘Investment and Control Decisions’, 750.

 85. Pan American, ‘Mr Alvin Adams Remarks at Pilot-Management Seminar, March 8–11’, March 8–11, 1954.

 86. Pan American, ‘Intercontinental Hotels Corporation’, November 24, 1950.

 87. Pan American, ‘Interview with John B. Gates by John C. Leslie’.

 88. Johanson and Vahlne, ‘The Internationalization Process of the Firm’, 23–32.

 89. Pan American, ‘Low Cost Air Service can Triple Tourist Expenditure Abroad’, September 25, 1951.

 90. Collis, ‘A Resource-Based Analysis of Global Competition’, 49–68.

 91. Helfat and Peteraf, ‘Understanding Dynamic Capabilities’, 91–102; and Teece, Pisano, and Shuen, ‘Dynamic Capabilities and Strategic Management’, 509–33.

 92. Erramilli and Rao, ‘Service Firms’ International Entry-Mode Choice’, 19–38; and Gatignon and Anderson, ‘The Multinational Corporation's Degree of Control’, 305–36.

 93. Pla-Barber, Sanchez-Peinado, and Madhok, ‘Investment and Control Decisions in Foreign Markets’, 736–53.

 94. Erramilli and Rao, ‘Service Firms’ International Entry-Mode Choice’, 19–38; Gatignon and Anderson, ‘The Multinational Corporation's Degree of Control over Foreign Subsidiaries’, 305–36; Pla-Barber, Sanchez-Peinado, and Madhok, ‘Investment and Control Decisions in Foreign Markets’, 736–53.

 95. Buckley, ‘Business History’, 307–33; and Teece, Pisano, and Shuen, ‘Dynamic Capabilities and Strategic Management’, 509–33.

 96. Johanson and Vahlne, ‘The Internationalization Process’, 23–24.

 97. Dunning and Lundan, Multinational Enterprises, 268.

 98. Ibid., 328.

 99. Uttam, ‘US Multinational Involvement’, 55. Uttam posited that general factors such as ‘increased availability of money for real estate ventures around the world in the 1960s and 1970s encouraged the movement of hotel companies away from the traditional contracts and franchising.’ According to this study, management contract was adopted in the beginning out of an internalisation process in order to overcome the difficulties of gaining entry to Latin America. Ibid., 57. Although Uttam mentioned ‘management contracts which are now widespread [in the 1990s] in the domestic hotel scenes in the US, [they] were first used by US hotel companies in international markets’.

100. Jones, Multinationals and Global Capitalism, 76–108.

101. Boldt-Christmas, Jacobsen, and Tschoegl, ‘The International Expansion of the Norwegian Banks’, 99; Jones, Multinationals and Global Capitalism, 113–14; and Sluyterman, ‘Internationalisation of Dutch Accounting Firms’, 9.

102. Gee, International Hotels, 27–65.

103. Godley and Fletcher, ‘Foreign Entry into British Retailing’, 392–400.

104. Hollander cited in Godley and Fletcher, ‘Foreign Entry into British Retailing’, 395; and Pan American, ‘J. Walter Thomson Research’.

105. Jones and Khanna, ‘Bringing History (Back)’, 453–68; and Jones and Miskell, ‘Acquisitions and Firm Growth’, 8–28.

106. Buckley, ‘Business History’, 307.

107. Jones and Khanna, ‘Bringing History (Back)’, 453–68.

108. Dunning and Lundan, Multinational Enterprises, 144.