Top 10 Hospitality Companies in the World

In this piece, we will take a look at the top ten hospitality companies in the world.

The hospitality industry has started to make a strong recovery from the pandemic-era losses, even though the Russian invasion of Ukraine and soaring inflation dampened the industry sentiment and created new hurdles. A research report from The Business Research Company shares that between 2021 and 2022, the global hospitality market grew from $3.9 trillion to $4.5 trillion at a compounded annual growth rate (CAGR) of 13.9%. This rate is attributable to the aforementioned pent up demand, as the research firm believes that the same industry will grow at a much lower CAGR of 7.4% from 2022 to 2026, to be worth $6 trillion by the end of the forecast period.

Another research report, this time from Market Data Forecast, has a much more optimistic CAGR for the hospitality industry. This research firm estimates that the sector will grow at a whopping 18.5% between 2022 to 2027, and from an initial value of $3.5 trillion to a whopping $4.1 trillion. Alongside an easing in coronavirus restrictions, Market Data Forecast also believes that once commodity prices drop and international travel picks up, the industry will see growing demand which will lead to revenue and capacity utilization rising. Asia Pacific and North America led the market in 2020, as they accounted for a large 70% chunk of the total revenue pie.

Finally, Facts and Factors estimates that the industry was worth $3.9 trillion in 2021 and from then to 2028, it will grow at a CAGR of 10.24% to sit at an estimated $6.7 trillion by the end of the forecast period. However, it diverges from the earlier research reports and notes that Europe was the leading revenue contributor in 2021.

Today’s piece will take a look at the largest hospitality firms in the world, and the leading players, Marriott International, Inc. (NASDAQ:MAR), Hilton Worldwide Holdings Inc. (NYSE:HLT), and Las Vegas Sands Corp. (NYSE:LVS), are likely to catch your eye.

Photo by Gio Bartlett on Unsplash

Our Methodology

We scanned the hospitality industry to determine which companies are operating in it and providing services. They were then listed according to market capitalization, from lowest to highest.

Top 10 Hospitality Companies in the World

10. InterContinental Hotels Group PLC (NYSE:IHG)

Market Capitalization as of November 11, 2022: $10.10 billion

InterContinental Hotels Group PLC (NYSE:IHG) is a hotel manager, operator, franchisor, and leaser that is headquartered in Denham, United Kingdom. The firm has a variety of popular brands in its portfolio, such as the Holiday Inn chain, Staybridge Suites, and Atwell Suites. It operates close to 6,000 hotels all over the globe.

InterContinental Hotels Group PLC (NYSE:IHG)’s global revenue per available room (RevPAR) jumped to $87.37 in its fiscal third quarter, growing by 28% annually and 3% over 2019 levels. This was aided by inflation, as the firm’s average daily rate of $129 grew by 13% annually and by 11% over 2019. Additionally, the bulk of InterContinental Hotels Group PLC (NYSE:IHG)’s rooms is in the U.S., where the economic conditions are vastly better than the ones being experienced in Europe.

InterContinental Hotels Group PLC (NYSE:IHG)’s market capitalization sits at $10.10 billion, and Morgan Stanley increased its share price target to GBp 6,100 from GBp 5,900 in October 2022.

Paul Marshall and Ian Wace’s Marshall Wace LLP is InterContinental Hotels Group PLC (NYSE:IHG)’s largest investor through an $11 million stake that comes via 208,894 shares.

Hilton Worldwide Holdings Inc. (NYSE:HLT), Marriott International, Inc. (NASDAQ:MAR), and Las Vegas Sands Corp. (NYSE:LVS) are met by InterContinental Hotels Group PLC (NYSE:IHG) in our list of the biggest hospitality chains in the world.

9. Hyatt Hotels Corporation (NYSE:H)

Market Capitalization as of November 11, 2022: $10.29 billion

Hyatt Hotels Corporation (NYSE:H) is an American company that operates its own and leased hotels. The company’s facilities include full service hotels, vacation units, condos, and residential units. The company is headquartered in Chicago, Illinois.

Hyatt Hotels Corporation (NYSE:H) has a market capitalization of $10.29 billion which comes through a share price of $96 per share. The shares have remained flat year to date, and they were down significantly in mid July but have see-sawed since then to reverse the losses. This growth is partly attributable to the strong operating performance posted by the firm in its third fiscal quarter, which saw it grow adjusted operating income by $142 million annually and by $89 million over 2019. Additionally, the firm’s fee revenue grew by 50% in Q3 2022 over Q3 2019, and its earnings in Americas also exceeded those of 2019, indicating that the firm is now fully on the path to recovering from the pandemic’s devastation.

Hyatt Hotels Corporation (NYSE:H) has also reduced its debt to asset ratio of late, and the firm increased its rooms growth outlook for 2022 to 6.5% in November 2022.

Hyatt Hotels Corporation (NYSE:H)’s largest investor is Mason Hawkins Southeastern Asset Management which owns 2.8 million shares that are worth $213 million.

8. H World Group Limited (NASDAQ:HTHT)

Market Capitalization as of November 11, 2022: $12.14 billion

H World Group Limited (NASDAQ:HTHT) is a Chinese company that develops and manages hotels. The firm has more than 20 different hotel brands in its portfolio, and these let its portfolio stand at more than 8,000 hotels and hundreds of thousands of rooms. H World Group Limited (NASDAQ:HTHT) is headquartered in Shanghai.

Since H World Group Limited (NASDAQ:HTHT) is a Chinese company, the firm’s coronavirus recovery rate is slower than its global peers. As of October 2022, its RevPAR stood at 90% of pre-coronavirus levels, since the ongoing hide and seek between the Chinese government and lockdowns is dampening economic growth in the region. The RevPAR recovery was helped by daily room rates increasing and H World Group Limited (NASDAQ:HTHT) believes that it will have to raise the rates in Europe to deal with rising inflation.

Daiwa raised H World Group Limited (NASDAQ:HTHT)’s share price rating to Buy from Outperform in October 2022, and reduced the share price target to $34 from $43, basing the decision on China reopening in mid 2023. H World Group Limited (NASDAQ:HTHT) has a $12.14 billion market capitalization.

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

Market Capitalization as of November 11, 2022: $13.46 billion

Host Hotels & Resorts, Inc. (NASDAQ:HST) is the largest lodging real estate investment trust in the world. The firm has more than 70 properties in the U.S., and it partners with renowned brands such as Hyatt, Sheraton, and Hilton. It is headquartered in Bethesda, Maryland, the United States

Host Hotels & Resorts, Inc. (NASDAQ:HST)’s RevPAR as of the second quarter of this year has grown by a massive 100% annually across all of its locations. The highest RevPAR is in the company’s properties in Jacksonville, with an average of $974. The lowest reading is from Houston, which has a value of $175.50. Additionally, the total RevPAR in Maui/Oahu has surpassed 2019 levels, indicating that Host Hotels & Resorts, Inc. (NASDAQ:HST) is recovering well from the coronavirus.

Host Hotels & Resorts, Inc. (NASDAQ:HST) has a $13.46 billion market capitalization.

Israel Englander’s Millennium Management is Host Hotels & Resorts, Inc. (NASDAQ:HST)’s largest investor through a $136 million stake that comes via 8.6 million shares.

6. MGM Resorts International (NYSE:MGM)

Market Capitalization as of November 11, 2022: $14 billion

MGM Resorts International (NYSE:MGM) is a renowned hospitality chain that operates casinos, resorts, and hotels primarily in Las Vegas, Nevada. The firm has close to 30 hotels and gaming locations, and it is headquartered in Las Vegas, Nevada, the United States.

MGM Resorts International (NYSE:MGM) is benefiting from the recovery in the Las Vegas Strip, where foot traffic and travel recovery have contributed to an 18% annual growth. The company’s BetMGM gaming brand is a leader in the U.S. iGaming industry, and it commands a whopping 10% of the overall total addressable market (TAM) of $1.5 billion, through raking the company $1.5 billion in revenue. Finally, for the first three quarters of this year, MGM Resorts International (NYSE:MGM) has grown its revenue by roughly 50% to $9.5 billion. The growth has been propelled by more room bookings and a growth in food and beverage sales.

MGM Resorts International (NYSE:MGM) has a $14 billion market capitalization. The company is also looking to secure a gaming license in New York and open a new resort in Japan.

MGM Resorts International (NYSE:MGM)’s largest investor is Keith Meister’s Corvex Capital which owns 6.6 million shares that are worth $193 million.

Baron Funds mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“MGM Resorts International is a leading global casino and entertainment company. At its recent price of only $30 per share, we believe MGM is valued at a significant discount to our reasonable $50 per share estimate of the sum-of-the-parts value of its business. Further, the company’s domestic operations are valued at a 18% free-cash-flow yield. Paul Salem, Chairman of the Board, recently acquired shares.”

Along with Marriott International, Inc. (NASDAQ:MAR), Hilton Worldwide Holdings Inc. (NYSE:HLT), and Las Vegas Sands Corp. (NYSE:LVS), MGM Resorts International (NYSE:MGM) is one of the largest hospitality companies in the world.

5. Galaxy Entertainment Group Limited (HKSE:0027.HK)

Market Capitalization as of November 11, 2022: $25.49 billion

Galaxy Entertainment Group Limited (HKSE:0027.HK) is a Hong Kong based investment company that operates gaming and entertainment properties. The firm owns casinos, hotels, and resorts. It is headquartered in Central, Hong Kong.

Galaxy Entertainment Group Limited (HKSE:0027.HK) has not done well this year, and when compared to its global peers, the firm is struggling to recover from the effects of the coronavirus pandemic. The firm’s third quarter revenue of $2 billion marked a painful drop of 50% annually and 16% sequentially, as it failed to produce an operating profit. However, whispers in the market that China is finally moving away from its COVID lockdowns are injecting some life into the stock these days.

Despite a tumultuous year, Galaxy Entertainment Group Limited (HKSE:0027.HK) has a market capitalization of $25.49 billion.

4. Las Vegas Sands Corp. (NYSE:LVS)

Market Capitalization as of November 11, 2022: $33.10 billion

Las Vegas Sands Corp. (NYSE:LVS) is an American company that develops and operates integrated resorts. The firm has properties in the U.S. and in Asia. Its hotels are located primarily in China, along with some in the U.S. and in Singapore. Las Vegas Sands Corp. (NYSE:LVS) is headquartered in Las Vegas, Nevada.

Las Vegas Sands Corp. (NYSE:LVS) is one of the most strongly hit hospitality firms due to consistent lockdowns in China. However, despite this, the company has a strong brand image and reputation, which is evident from the fact that its properties in Macau are still valued at seven times their cash flow. The valuation is also evident in its market capitalization, which as of the latest reading sits at a cool $33 billion. Las Vegas Sands Corp. (NYSE:LVS)’s shares are also up by 11.5% year to date.

Ken Griffin’s Citadel Investment Group is Las Vegas Sands Corp. (NYSE:LVS)’s largest investor. It owns 3.6 million shares that are worth $121 million.

Baron Funds mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“Certain travel-related businesses remain cyclically depressed not secularly challenged and should rebound as economic strength re-emerges. For example, the business operations of Macau-centric casino and gaming companies such as Las Vegas Sands Corporation (NYSE:LVS) have yet to recover due to the ongoing COVID-19 challenges in China. We expect business to rebound sharply when economic growth recovers just as it did in Las Vegas. Las Vegas Sands Corporationis a global leader in the development and operation of luxury casino resorts in Macau and Singapore, and it maintains a liquid and investment grade balance sheet. It is currently valued at a significant discount to our assessment of replacement cost, and the company’s Macau operations are valued at only 7 times estimated cash flow.”

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

Market Capitalization as of November 11, 2022: $38 billion

Hilton Worldwide Holdings Inc. (NYSE:HLT) is an American hospitality chain and one of the oldest of its kind since it was set up in 1919 and is currently headquartered in McLean, Virginia. The firm has close to seven thousand properties with approximately one million rooms in its portfolio.

Hilton Worldwide Holdings Inc. (NYSE:HLT)’s third quarter results saw the firm report a 35% jump in revenue and a 30% jump in RevPAR – making it yet another hotel chain to recover from the pandemic. The firm expects its RevPAR to grow by 40% and 43% this quarter, and its earnings per share and revenue guidance are also above consensus estimates.

Hilton Worldwide Holdings Inc. (NYSE:HLT)’s market capitalization is $38 billion.

Bill Ackman’s Pershing Square is Hilton Worldwide Holdings Inc. (NYSE:HLT)’s largest investor through a $1 billion stake that comes via 9.9 million shares.

2. Oriental Land Co., Ltd. (OTCMKTS:OLCLY)

Market Capitalization as of November 11, 2022: $46.39 billion

Oriental Land Co., Ltd. (OTCMKTS:OLCLY) is a Japanese company that operates and manages theme parks and hotels. These include Disneyland and DisneySea theme parks and similar hotels. The firm is headquartered in Urayasu, Japan.

Oriental Land Co., Ltd. (OTCMKTS:OLCLY) financial results for the first half of its current fiscal year ending in March 2023 saw the company fire on all fronts. It delivered a whopping 109% in revenue growth and posted positive operating and net income, which were in sharp contrast to the year ago results that have seen the firm post massive losses. Oriental Land Co., Ltd. (OTCMKTS:OLCLY)’s balance sheet also remained healthy during the time period, as it did not take any new debt.

Oriental Land Co., Ltd. (OTCMKTS:OLCLY) has a $46.39 billion market capitalization.

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

Market Capitalization as of November 11, 2022: $51.84 billion

Marriott International, Inc. (NASDAQ:MAR) is an American company that was formed in 1927 and is headquartered in Bethesda, Maryland. The firm has a host of different brands in its portfolio, which include Ritz Carlton, Sheraton, Delta Hotels, and Marriott Hotels.

Marriott International, Inc. (NASDAQ:MAR) is taking a unique approach to expand its business, as the company is one of the first large hotel brands to also expand into the apartment space. It announced in November 2022 that it is launching Apartments by Marriott Bonvoy. The company already operates Marriott Executive Apartments, and the new brand will provide the service in the U.S. and in Canada.

Marriott International, Inc. (NASDAQ:MAR) increased its dividend by 33% to 40 cents in November 2022, and the firm has a $52 billion market capitalization.

Marriott International, Inc. (NASDAQ:MAR)’s largest investor is Boykin Curry’s Eagle Capital Management which owns 8.8 million shares that are worth $1.1 billion.

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Disclosure: None. Top 10 Hospitality Companies in the World is originally published on Insider Monkey.