15 Largest Hotel Chains in the US in 2022

In this article, we will discuss the 15 largest hotel chains in the US in 2022.

Despite the rising inflation and interest rates, the pent-up demand for traveling following the ease of COVID-19-related restrictions is showing no signs of weakness. According to a study, 92% of U.S. citizens intend to travel in the next twelve months. Meanwhile, 28% of Americans intend to travel over the Thanksgiving weekend and 31% over the Christmas period. These figures are at the highest level since the start of the COVID-19 pandemic. As a result, the largest hotel chains in the U.S. are experiencing a stellar recovery, with room occupancy recovering back to the pre-pandemic level. Furthermore, the American Hotel and Lodging Association (AHLA) anticipates hotel room revenue to be recorded at $188 billion by the end of 2022. On a nominal basis, it would be higher than the 2019 levels. Experts anticipate the demand for the traveling and hospitality sectors to remain insulated, benefitting some of the largest hotel chains in the U.S., such as Marriott International, Inc. (NASDAQ:MAR), Wyndham Hotels & Resorts, Inc. (NYSE:WH), and Hilton Worldwide Holdings Inc. (NYSE:HLT).

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Our Methodology

We have chosen the 15 largest hotel chains in the U.S. and have ranked them in terms of the number of properties owned by them as of 2022. Eight of the 15 largest hotel chains in the U.S. are publicly-listed companies, so we have included information regarding the level of hedge fund ownership as of Q3 2022.

Largest Hotel Chains in the U.S. in 2022

15. Host Hotels & Resorts, Inc. (NASDAQ:HST)

Number of Hedge Fund Holders: 30

Number of Properties in the US: 78

Host Hotels & Resorts, Inc. (NASDAQ:HST) is a Maryland-based lodging REIT with 78 hotels containing 42,200 rooms.

On October 25, Chris Woronka at Deutsche Bank maintained a Buy rating on Host Hotels & Resorts, Inc. (NASDAQ:HST) stock with a target price of $24. During Q3, the Maui/Oahu portfolio of the business saw a significant increase in revenue, and experts believe that the continuation of this trend will bring more upside to the stock. To further boost its presence in the Jackson Hole area, Host Hotels & Resorts, Inc. (NASDAQ:HST) took over fee simple interest in the Four Seasons Resort and Residences Jackson Hole for $315 million. Experts believe that the company has a strong balance sheet and is working on multiple growth-related strategies as one of the largest hotel chains in the U.S.

As of Q3 2022, Host Hotels & Resorts, Inc. (NASDAQ:HST) was held by 30 hedge funds.

14. Apple Hospitality REIT, Inc. (NYSE:APLE)

Number of Hedge Fund Holders: 22

Number of Properties in the US: 220

Apple Hospitality REIT, Inc. (NYSE:APLE) is a Richmond, Virginia-based real estate investment trust (REIT) that has a portfolio of hotels located in developing, high-end suburban and urban markets. The company has a presence in 37 states in the US and has 28,983 guest rooms across its properties.

Being a REIT, Apple Hospitality REIT, Inc. (NYSE:APLE) is mandated to distribute 90% of its taxable income as dividends to shareholders. The stock offers an attractive one-year forward dividend yield of 5.90% as of November 17. Experts believe that the hotel chain has low exposure to leisure demand and has a bigger presence in the upscale segment of the hotel chain, which is expected to remain strong in case of a recession.

Millennium Management raised its stake in Apple Hospitality REIT, Inc. (NYSE:APLE) by 147% during the third quarter of the year.

13. Hyatt Hotels Corporation (NYSE:H)

Number of Hedge Fund Holders: 26

Number of Properties in the US: 664

Hyatt Hotels Corporation (NYSE:H) is a Chicago, Illinois-based hospitality giant.

The company posted its Q3 2022 results on November 3. Hyatt Hotels Corporation (NYSE:H) reported an EPS of 64 cents, surpassing the analysts’ forecast of 25 cents. In a research note issued on September 27, Duane Pfennigwerth at Evercore ISI highlighted that Hyatt Hotels Corporation (NYSE:H) operates on an asset-light revenue model that plays in the company’s favor. Analysts think this model would also aid Hyatt Hotels Corporation (NYSE:H) in generating healthier free cash flows in the long run. The analyst gave Hyatt Hotels Corporation (NYSE:H) stock a target price of $100 in his research report and upgraded it from an In-line rating to an Outperform rating.

Of the 920 hedge funds in Insider Monkey’s database, Hyatt Hotels Corporation (NYSE:H) was held by 30 hedge funds as of Q3 2022.

12. Red Roof Inn

Number of Properties in the US: 670

Red Roof Inn is a New Albany, Ohio-based hotel chain that has the distinction of being the third biggest budget lodging chain in the US. The company also operates in the midscale segment.

The hotel chain claims to provide a high level of customer experience at an affordable rate. In January 2022, Red Roof Inn surpassed 60,000 rooms under its portfolio. The hotel chain operator recently opened a 51-room hotel in Rocky Mount, Battleboro, North Carolina, in November 2022. Red Roof Inn’s revenue in 2021 was 19% higher in comparison to 2019, making it one of the few brands in the hospitality industry to surpass the pre-pandemic revenue levels.

11. Westmont Hospitality Group

Number of Properties in the US: 695

Westmont Hospitality Group is a Mississauga, Ontario, Canada-based hospitality management company that operates hotels under franchise agreements with leading hotel chains like Marriott International, Inc. (NASDAQ:MAR) and InterContinental Hotels Group PLC (NYSE:IHG).

The company has emerged as one of the biggest privately-owned hospitality entities in the world. In July 2022, Westmont Hospitality Group, along with hedge fund Angelo Gordon acquired, Madrid-Spain boutique hotel chain Room Mate for an undisclosed amount. Companies like Westmont Hospitality Group are now co-investing with leading hotel chains in developing new properties and then taking over the role of the tenant. This reflects a higher level of alignment between the parties.

10. Extended Stay America

Number of Properties in the US: 760

Extended Stay America is a Charlotte, North Carolina-based company that operates a chain of economy hotels across the US and Canada with over 85,000 rooms.

Given the boom in the hospitality industry, the company announced on October 19 that it intends to build 15 new Extended Stay America Premier Suites hotels in partnership with Concord Hospitality and Whitman Peterson. The hotel chain operator provides numerous hotel facilities like a completely operational kitchen and free Wi-Fi that is suitable for short, medium, and long-term hotel stay. The private company generates an approximate annual revenue of $1 billion and recently announced the employment of three industry veterans as part of the company’s Executive Leadership team.

9. Red Lion Hotels Corporation

Number of Properties in the US: 1000

Red Lion Hotels Corporation is a Denver, Colorado-based hospitality company that owns and franchises economy, mid-scale and upscale hotels.

The company has eight notable brands under its portfolio that comprise Hotel RL, Red Lion Hotels, Red Lion Inn & Suites, etc. Red Lion Hotels Corporation was acquired by Sonesta International in March 2021. Following the acquisition, Sonesta leveraged the expertise of Red Lion Hotels Corporation and launched its franchising operations. The name Red Lion still resonates with the customer strongly and, as a result, operates as a separate entity under the banner of Sonesta International.

8. Aimbridge Hospitality

Number of Properties in the US: 1,166

Aimbridge Hospitality is an Arlington, Texas-based third-party hotel management company. The company is at the eighth position in our list of the largest hotel chains in the U.S. in 2022.

On November 15, the company announced the arrival of Patrick Volz as Chief Operating Officer for Global Operations. Mr. Volz brings in an experience of over a quarter of a century along with him. In October 2022, Aimbridge Hospitality announced the expansion of its portfolio through the addition of five new properties that will provide growth to the Select Service business division of the company. Overall, Aimbridge Hospitality has six business divisions under its belt. Experts believe that the relevancy of midscale brands depends upon generating brand relevancy for new guests.

7. G6 Hospitality

Number of Properties in the US: 1,400

G6 Hospitality is a Carrollton, Texas-based operator and franchisor of economy lodging through its subsidiaries Motel 6 and Studio 6. The company has a presence in 49 states. According to USA Today, Motel 6 was regarded as the “best budget-friendly hotel brand” in 2020.

G6 Hospitality has recently launched the “Light Her Way” program, which is focused on encouraging women to own hotels. The company will provide franchise and guidance services to female entrepreneurs who are interested in owning hotels. Out of the 1,400 properties, the company has 100 locations dedicated to providing extended stay facilities. Experts have a bullish take on the extended stay segment of the lodging industry.

6. Best Western International, Inc.

Number of Properties in the US: 2,161

Best Western International, Inc is a Phoenix, Arizona-based hotel network with a significant presence in the US through its various brands and a rich history of 75 years.

During the annual convention held from October 28 to 30, the Chairman of Best Western, John Kelly, appreciated the efforts of CEO Larry Cuculic in making the hotel chain generate more revenue. Mr. Cuculic was brought in during the fall of 2021. During Q3, the company observed an increase in occupancy rate by 16.2% YoY, and revenue per available room (RevPAR) increased by 37.8% YoY. Given the better-than-expected performance, Best Western International intends to give back a rebate of $15 million to its member hotels.

In addition to Best Western International, Inc, Marriott International, Inc. (NASDAQ:MAR), Wyndham Hotels & Resorts, Inc. (NYSE:WH), and Hilton Worldwide Holdings Inc. (NYSE:HLT) are also among the largest hotel chains in the U.S. in 2022.

5. InterContinental Hotels Group PLC (NYSE:IHG)

Number of Hedge Fund Holders: 9

Number of Properties in the U.S.: 3,849

InterContinental Hotels Group PLC (NYSE:IHG) is a Denham, Buckinghamshire, England-based hospitality company with a significant presence in the U.S.

InterContinental Hotels Group PLC (NYSE:IHG) is experiencing strong growth in RevPAR as of Q3 2022. Experts believe that the stock could offer upside to investors in the future as the bottom line grows and long-term debt reduces. During Q3 2022, the company’s three upper-upscale tiers of properties, Kimpton, InterContinental, and Hotel Indigo brands, reported the highest average daily rates (ADR) in the Americas. The operator of the Crowne Plaza and Holiday Inn hotel franchise has over 50% of the properties located in the U.S. Furthermore, InterContinental Hotels Group PLC (NYSE:IHG) company has a strong loyalty program with over 100 million members. According to the hotel chain’s management, the members spend 20% more than non-members.

InterContinental Hotels Group PLC (NYSE:IHG) was held by 9 hedge funds as of Q3 2022.

4. Choice Hotels International, Inc. (NYSE:CHH)

Number of Hedge Fund Holders: 22

Number of Properties in the U.S.: 5,550

Choice Hotels International, Inc. (NYSE:CHH) is a Rockville, Maryland-based hospitality company that is one of the largest hotel chains in the U.S.

While Choice Hotels International, Inc. (NYSE:CHH) missed the EPS forecast for Q3 2022, the company outperformed the top-line estimates for the quarter. Like other hotel chains, Choice Hotels International, Inc.’s (NYSE:CHH) YoY improvement in RevPAR was strong, increasing by 18.3%. Furthermore, the stellar performance of the upscale segment reflects that the company’s acquisition of Radisson Hotel Group Americas was the right decision. Choice Hotels International, Inc.’s (NYSE:CHH) pipeline for the extended stay segment observed an increase of 45% YoY to 470 units.

Here’s what Baron Funds said about Choice Hotels International, Inc. (NYSE:CHH) in its Q2 2022 investor letter:

“Shares of hotel franchisor Choice Hotels International, Inc. (NYSE:CHH) declined on investor concerns around a possible economic slowdown or recession. We retain conviction. Choice is not experiencing a slowdown in visitation or spend levels at its properties and continues to generate strong results. The company recently acquired the Radisson hotel brand in the Americas, an asset-light transaction that should add significantly to shareholder value.”

3. Hilton Worldwide Holdings Inc. (NYSE:HLT)

Number of Hedge Fund Holders: 60

Number of Properties in the U.S.: 5,582

Hilton Worldwide Holdings Inc. (NYSE:HLT) is a McLean, Virginia-based hospitality company with a footprint of 18 brands and over 7,000 properties.

To boost shareholder return, Hilton Worldwide Holdings Inc. (NYSE:HLT) increased the share buyback plan from $2.5 billion to $4.3 billion on November 11. For Q3 2022, Hilton Worldwide Holdings Inc. (NYSE:HLT) reported that the company’s top line increased by 35.4% YoY to $2.37 billion, and EPS of $1.31 was seven cents higher than the consensus forecast. For Q4 2022, Hilton Worldwide Holdings Inc. (NYSE:HLT) anticipates EPS to be in the range of $1.15 to $1.23. The midpoint of $1.19 is one cent higher than the analysts’ estimates.

Here’s what Pershing Square Holdings said about Hilton Worldwide Holdings Inc. (NYSE:HLT) in its Q2 2022 investor letter:

“Hilton Worldwide Holdings Inc. (NYSE:HLT) is a high-quality, asset-light, high-margin business with significant long-term growth potential, led by a superb management team. The unforeseen arrival of the COVID-19 pandemic catalyzed a rapid and near-complete standstill in global travel, with RevPAR (the industry metric for same-store sales at a given hotel) down roughly 90% at the nadir of the pandemic. We increased our investment in Hilton during the pandemic as we believed the economic dislocation from COVID-19 would prove to be transient and that industry projections regarding the timeline for recovery were too pessimistic.

From the moment the pandemic began, Hilton’s management team took decisive actions to ensure the company not only managed through what it knew would be a challenging period, but also positioned the company to generate improved margins, cash flows, and investment returns once the business recovered. In hindsight, Hilton’s experience with COVID-19 – the 100-year proverbial flood – affirmed the company’s unique high-quality, asset light, high-margin business model, and reinforced our belief that Hilton deserves a premium valuation.

While Hilton entered 2022 impacted by the Omicron variant, results have vastly improved throughout the year as COVID-19 has evolved towards a more endemic virus, and consumer behavior has adapted accordingly. In recent months, Hilton’s system-wide RevPAR has surpassed 2019 levels and continues to improve. Recent strength has been led by domestic leisure travel occasions as consumer spending continues to shift from goods to services. …” (Click here to read the full text)

2. Marriott International, Inc. (NASDAQ:MAR)

Number of Hedge Fund Holders: 46

Number of Properties in the U.S.: 5,673

Marriott International, Inc. (NASDAQ:MAR) is a Bethesda, Maryland-based company that is a renowned operator, franchisor, and licensor of hotels globally. The company has over 30 brands under its umbrella. These brands have more than 8,000 properties spread across 139 countries.

Marriott International, Inc. (NASDAQ:MAR) is aggressively working on enhancing shareholder returns as it increased quarterly dividends by 33% to 40 cents following Q3 2022 results. Meanwhile, the board also increased the authorization of share buyback by 25 million shares. The majority of the hotel portfolio under the banner of Marriott International, Inc. (NASDAQ:MAR) is franchised, and the company only receives the base and franchise fees. Marriott International, Inc. (NASDAQ:MAR) has a pipeline of 485,000 rooms under development.

Aristotle Capital Management shared its stance on Marriott International, Inc. (NASDAQ:MAR) in its Q1 2022 investor letter. Here’s what the firm said:

“Marriott International outperformed in the first quarter following a better-than-expected earnings report for the company’s fourth quarter of 2021. During the pandemic, the company reduced expenses which improved operating leverage as revenue recovers. Expectations for travel in 2022 have improved as COVID cases have declined. The company has a strong pipeline of new hotels coming into the Marriott system. There are some indications that business-related travel is starting to recover.”

1. Wyndham Hotels & Resorts, Inc. (NYSE:WH)

Number of Hedge Fund Holders: 30

Number of Properties in the U.S.: 6,102

Wyndham Hotels & Resorts, Inc. (NYSE:WH) is a Parsippany-Troy Hills, New Jersey-based hotel chain operator that distinguishes itself as the biggest hotel franchisor in the world and also happens to be the largest hotel chain in the U.S.

Wyndham Hotels & Resorts, Inc. (NYSE:WH) posted its Q3 2022 results on October 25 and outperformed the revenue and earnings forecast for the period. The company reported revenue of $407 million which crossed the consensus forecast of $379 million. Wyndham Hotels & Resorts, Inc. (NYSE:WH) also increased the 2022 EPS forecast to $3.84 to $3.89, as compared to a previous range of $3.51 to $3.63. Meanwhile, the consensus estimate stands at $3.61. Furthermore, Wyndham Hotels & Resorts, Inc. (NYSE:WH) announced a share buyback plan of $400 million to increase shareholder returns during these uncertain times.

Citadel Investment Group raised its stake in Wyndham Hotels & Resorts, Inc. (NYSE: W.H.) by 43% during the third quarter of 2022.

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Disclose. None. 15 Largest Hotel Chains in the US in 2022 is originally published on Insider Monkey.