In this article, we’ll examine the top five hospitality firms worldwide.
Even if business confidence was lowered by the Russian invasion of Ukraine and skyrocketing prices imposed additional challenges, the hotel sector has begun to make a good comeback from the pandemic-era losses. According to data provided by The Business Research Company, the worldwide hospitality industry increased from $3.9 trillion in 2021 to $4.5 trillion in 2022, representing a CAGR (compound annual growth rate) of 13.9%. The research group predicts the same sector would expand at a significantly lower CAGR of 7.4% from 2022 to 2026, reaching $6 trillion by the conclusion of the projection period, attributed to the aforementioned pent up demand.
Market Data Forecast offers a considerably more upbeat CAGR for the hotel sector in their own forecast. From 2022 to 2027, this research group predicts the industry’s worth will increase from its current $3.5 trillion to an astounding $4.1 trillion. Along with the loosening of coronavirus limitations, Market Data Forecast anticipates a rise in demand, resulting in increased revenue and capacity utilisation, if commodity prices fall and international travel starts up. In 2020, the most lucrative regions were Asia-Pacific and North America, each accounting for 30% of global sales.
Finally, Facts and Factors projects that the market was worth $3.9 trillion in 2021, and that by the conclusion of the projection period in 2028, it would have grown to an estimated $6.7 trillion. In contrast to previous studies, this one finds that Europe was the most important regional contributor to revenues in 2021.
Today’s essay examines the world’s greatest hospitality companies; among them are the well-known Marriott International (NASDAQ:MAR), Hilton Worldwide (NYSE:HLT), and Las Vegas Sands (NYSE:LVS).
Top 5 Hospitality Companies in the World
1. InterContinental Hotels Group PLC (NYSE:IHG)
Market Capitalization as of November 11, 2022: $10.10 billion
Hotel management and operations conglomerate InterContinental Hotels Group PLC (NYSE:IHG) is based in Denham, England. The company owns a number of recognisable names in the hospitality industry, including the Holiday Inn, Staybridge Suites, and Atwell Suites hotel chains. To date, it has opened and managed about 6,000 hotels in over 100 countries.
In the fiscal third quarter, InterContinental Hotels Group PLC (NYSE:IHG) had a worldwide RevPAR increase of 28% year over year and 3% above 2019 levels, reaching $87.37. With inflation’s help, the company’s average daily fee of $129 increased by 13% in 2018 and by 11% in 2019. InterContinental Hotels Group PLC (NYSE:IHG) has a large number of rooms in the United States, where the economy is doing much better than in Europe.
Morgan Stanley raised their price objective for InterContinental Hotels Group PLC (NYSE:IHG) in October 2022, from GBp 5,900 to GBp 6,100, contributing to the company’s current market valuation of $10.10 billion.
Marshall Wace LLP, led by Paul Marshall and Ian Wace, owns 208,894 shares of InterContinental Hotels Group PLC (NYSE:IHG) for a total value of $11 million.
InterContinental Hotels Group PLC (NYSE:IHG) joins Hilton Worldwide Holdings Inc. (NYSE:HLT), Marriott International, Inc. (NASDAQ:MAR), and Las Vegas Sands Corp. (NYSE:LVS) on our list of the world’s largest hotel chains.
2. Hyatt Hotels Corporation (NYSE:H)
Market Capitalization as of November 11, 2022: $10.29 billion
Hyatt Hotels Corporation (NYSE:H) is a publicly traded American hotel management corporation. Complete hotels, holiday rentals, condominiums, and apartments are all part of the company’s offerings. Headquarters for the firm may be found in the Windy City.
At its current stock price of $96 per share, Hyatt Hotels Corporation (NYSE:H) has a market valuation of $10.29 billion. The stock has been flat so far this year, and after falling sharply in the middle of July, it has subsequently seensawed back up. Part of this expansion may be attributed to the company’s good financial performance during the third quarter of the fiscal year, when it increased its adjusted operating income by $142 million on an annual basis and by $89 million for the year. Its profitability in the Americas also surpassed those of 2019 and its fee income climbed by 50% year over year in the third quarter of 2022, so the company is clearly on the road to recovery from the destruction caused by the pandemic.
In addition, Hyatt Hotels Corporation (NYSE:H) has been reducing its debt to asset ratio recently and, in November 2022, raised its 2022 rooms growth estimate to 6.5%.
Mason Hawkins Southeastern Asset Management is the top shareholder in Hyatt Hotels Corporation (NYSE:H), with 2.8 million shares worth $213 million.
3. H World Group Limited (NASDAQ:HTHT)
Market Capitalization as of November 11, 2022: $12.14 billion
Chinese hotel developer and manager H World Group Limited trades on the NASDAQ under the ticker symbol “HTHT.” The company’s portfolio includes over 8,000 hotels and hundreds of thousands of rooms across more than 20 distinct hotel brands. Shanghai is home to H World Group Limited (NASDAQ: HTHT).
The coronavirus recovery rate at H World Group Limited (NASDAQ:HTHT) is lower than that of the business’s worldwide competitors since it is a Chinese corporation. Since the continuous game of hide-and-seek between the Chinese government and lockdowns is slowing economic development in the area, its RevPAR was at 90% of pre-coronavirus levels as of October 2022. An improvement in the RevPAR was aided by a rise in average daily room prices, and H World Group Limited (NASDAQ:HTHT) anticipates that it will need to increase rates in Europe to counteract inflation.
With China expected to reopen in the middle of 2023, Daiwa upgraded H World Group Limited (NASDAQ:HTHT) shares to Buy from Outperform in October 2022, while simultaneously lowering their price objective from $43 to $34. The market value of H World Group Limited (NASDAQ:HTHT) is $12.14 billion.
4. Host Hotels & Resorts, Inc. (NASDAQ:HST)
Market Capitalization as of November 11, 2022: $13.46 billion
To put it simply, Host Hotels & Resorts, Inc. (NASDAQ:HST) owns more hotel rooms than any other REIT in the world. There are over 70 hotels under the company’s management in the United States, and it works with well-known hotel chains including Hyatt, Sheraton, and Hilton. Its main office is in Bethesda, Maryland, USA.
As of the second quarter of this year, Host Hotels & Resorts, Inc. (NASDAQ:HST) saw a year-over-year increase in RevPAR of 100% across all of its properties. Jacksonville, where the business has many buildings, has the highest RevPAR, at $974. The Houston reading comes in at $175.50, the lowest of any city. Also, Host Hotels & Resorts, Inc. (NASDAQ:HST) is showing encouraging signs of recovery from the coronavirus, as the overall RevPAR in Maui/Oahu has approached 2019 levels.
The market valuation for Host Hotels & Resorts, Inc. (NASDAQ:HST) is $13.46 billion.
With a $136 million holding in 8.6 million shares of Host Hotels & Resorts, Inc. (NASDAQ:HST), Israel Englander’s Millennium Management is the company’s biggest investor.
5. MGM Resorts International (NYSE:MGM)
Market Capitalization as of November 11, 2022: $14 billion
MGM Resorts International (NYSE:MGM) is a well-known hotel and casino operator based in the Sin City. Its headquarters are in Las Vegas, Nevada, United States, and the company operates close to 30 hotels and casino sites.
The resurgence in foot traffic and tourism to the Las Vegas Strip has boosted MGM Resorts International’s (NYSE:MGM) bottom line by 18% annually. BetMGM is the company’s flagship iGaming brand, and it accounts for a stunning 10% of the $1.5 billion total addressable market (TAM) thanks to its $1.5 billion in annual revenue. As a last point, MGM Resorts International (NYSE:MGM) has increased its revenue by almost 50% to $9.5 billion over the first three quarters of this year. More people are staying at the hotel, which has contributed to an increase in food and drink sales.
The market value of MGM Resorts International (NYSE:MGM) is $14 billion. There are plans to develop a new resort in Japan, and the corporation is also applying for a gambling licence in New York.
Keith Meister’s Corvex Capital holds 6.6 million shares of MGM Resorts International (NYSE:MGM), which are now worth $193 million.
