Franchise URL's

[Guest]

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[MattAntonino]

You can actually do both A & B and hopefully get the best of both worlds.

Make subdomains.  http://location1.hotelname.com, http://location2.hotelname.com

A) You will pay less yearly because you're really just using hotelname.com

B) Each site will have an opportunity to raise its own ranks because subdomains are mainly treated as separate sites (think me.wordpress.com and you.wordpress.com)

So that would be my suggestion.  Subdomains give you both answers, which I think removes your dilemma.