Yes it offers more protection if you structure it correctly. Here is a common use case:
The benefit of doing this? If someone sues one of your operating companies, the assets it is leasing from the holding company are protected from that lawsuit.
There is a downside to creating this structure though. You have to treat each entity separately -- each will have it's separate books, operating agreements, bank accounts, etc. If they share a common resource, then you need a shared services agreement as well.