Which company created the first commercial hotel franchise system in the United States?

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Holiday Inn created the first commercial hotel franchise system in the United States.

The chain was founded by Kemmons Wilson, who opened the first Holiday Inn in Memphis, Tennessee, in 1952. Wilson wanted consistent, family-friendly roadside lodging after finding American motels varied greatly in quality during a family road trip.

Holiday Inn used standardized designs, services, and operating expectations, then expanded through franchising. This approach helped make dependable lodging available along the expanding American highway network. It also influenced the development of the modern branded hotel industry.

Hilton, Marriott, and Best Western were also major forces in hotel growth, but Holiday Inn is widely credited with creating the first commercially franchised hotel chain in the United States. The term “commercial” distinguishes the system from earlier licensing or affiliation arrangements.

Source: Wikipedia · fact-checked Sept. 2026

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