Companies in this industry operate short-term lodging facilities, including hotels, motels, and resort hotels. Major companies include Choice Hotels, Hilton, Hyatt, Marriott, and Wyndham (all based in the US), as well as Accor (France), InterContinental Hotels Group (UK), Jin Jiang Hotels (China), NH Hotel Group (Spain), and Whitbread (UK).
The global hotel industry generates more than $500 billion in revenue per year, according to Statista. The most popular travel destinations include France, the US, Spain, China, and Italy. Fast-growing international tourism markets include Japan, Thailand, Hungary, and Myanmar. Emerging regions are expected to drive worldwide tourism industry growth over the next 15 years, led by the Asia/Pacific region.
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 $175 billion. The industry does not include casino hotels and resorts, which are covered in a separate 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% of revenue....