Why are hotel private company?

Not all hotels are private companies. There are over 600 publicly traded hotel and motel chains. There are also franchised hotels, where the hotel site is owned by a small company or individual that pays for the use of the name.

And then there are independent hotels that are likely private companies.

Some benefits of being a privately owned hotel are: independence, control over wealth distribution, autonomy over marketing and public relations, no hindrances from securities law and stock prices, less paperwork, keeping proprietary information out of the public domain,