Final answer:
The Mansion Hotel Group's purchase of Red Brick Hotels and subsequent management rebranding as Mansion hotels illustrates a merger and acquisition process, which is detailed as the correct option to the provided scenario. Thus, the correct option in this matter is 1) A merger and acquisition.
Step-by-step explanation:
The scenario described where the Mansion Hotel Group purchased Red Brick Hotels for an estimated value of $120 billion and all the hotels previously owned by Red Brick Hotels are now managed by the Mansion Hotel Group as Mansion hotels, best illustrates a merger and acquisition. This business endeavor entails the purchase and absorption of the target company (Red Brick Hotels) into the purchasing entity (Mansion Hotel Group). This leads to a unification of the businesses under a single brand, in this case, Mansion hotels.
Mergers and acquisitions are complex processes that involve a thorough valuation of the company being purchased, negotiation between both parties, and often, a strategic rebranding. A change in hotel management is a result of this process, while a change in hotel branding refers to the post-acquisition rebranding of the former Red Brick Hotels as Mansion hotels. The value of the hotel chain may increase or decrease based on how well the integration and management are handled post-acquisition, but the scenario does not suggest a decrease in hotel value explicitly.