Preferred Hotels & Resorts was formed by 12 North American hoteliers in 1968. It started as a referral group for hotels under the name Preferred Hotels Association. When the company had its 10th birthday in 1979, they began their international reach with 14 European hotel members as well as its first hotel in the Asia Pacific. In 1981, the organization renamed itself as the Preferred Hotels Worldwide just when they ended the personal referral services, which was previously used for membership. In 1990, Preferred Hotels Worldwide changed its name again into Preferred Hotels & Resorts. That change also marked an evolution in their operations. From that period to the beginning of the 21st century, the hotel company underwent transformations, such as their conversion to a for-profit stock corporation and forming a new holding company the IndeCorp (Independent Hotel Corporation).

In 2004, the largest shareholder of IndeCorp John Ueberroth was names CEO and chairman, along with his wife Gail Ueberroth as the vice chairman. Their daughter Lindsey Ueberroth was the executive vice president. Ueberroth was known for his travel industry experience, so he was a significant role in the whole new Preferred Hotel & Resorts. In 2015, the hotel chain already accumulated 5 distinct hotel brands - Legend, LVX, Lifestyle, Connect, and Preferred Residences.