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Hotels, Motels & Resorts

10 Pages First Research, Inc. July 20, 2015 SKU: FRRS5633506

Hotels, Motels & Resorts

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate short-term lodging facilities, including hotels, motels, and resort hotels. Major companies include Hilton, Hyatt, Marriott, Starwood, and Wyndham (all based in the US), as well as Accor (France), InterContinental (UK), and NH Hotel Group (Spain).

The global hotel industry generates about $480 billion in revenue per year, according to Euromonitor International. The most popular travel destinations include the US, Spain, France, China, and Italy. Growth is expected to come from several Asia/Pacific countries, led by Japan and Thailand.

The US hotel, motel, and resort industry consists of about 40,000 companies that operate about 53,000 properties with combined annual revenue of about $160 billion. The industry does not include casino hotels and resorts, which are covered in the Gambling industry profile.


Business and tourist travel drive demand. Both are affected by the strength of the economy. The profitability of individual companies depends on efficient operations, because many costs are fixed, and on effective marketing. Large companies have advantages in economies of scale in operations, can more easily raise capital, and have strong name recognition. Small companies, such as boutique hotels, can compete effectively in favorable locations and by providing specialty services. The US industry is fragmented: the 50 largest companies generate about 45 percent of revenue.


Major industry product lines are room fees (about 75 percent of industry revenue) and sales of food, alcoholic drinks, and merchandise.

Basic operations of hotels and...

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Hotels, Motels & Resorts

First Research, Inc.
July 20, 2015

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