Get to know some of the biggest players in both hotel operations and real estate investment trusts (REITs) with this deep dive into the hotels industry. Learn what these companies offer, their global reach, and much more!

Hotels are one of the most essential and lucrative facets of the real estate industry, providing lodging to travelers and vacationers around the world. Despite the global pandemic impacting many aspects of hotel occupancy and revenue, certain companies remain some of the biggest players in both operators and real estate investment trusts (REITs).

In this blog post, we will explore several major hotel companies in operation worldwide and REITs that focus their investments on hotels or hospitality assets. Get ready for a deep dive into what makes these companies stand out from their competitors within a fast-growing sector.

Biggest Hotel Companies and REITs in the world

The biggest hotel companies and REITs in the world include Marriott International, Inc., Wyndham Hotels &'' Resorts, InterContinental Hotels Group (IHG), Hilton Worldwide Holdings Inc., La Quinta Holding Company, and Choice Hotels International, Inc.

AccorHotels, Hyatt Hotels Corporation, and Red Lion Hotel Corporation. These companies have over 1 million rooms under management or ownership across their collective portfolios.

Marriott International is currently the largest hotel company in the world, with over 790 thousand rooms globally. Its portfolio comprises 30 brands spread across over 130 countries and territories. It also operates one of the leading loyalty programs for frequent travelers—the Marriott Rewards Program.

Wyndham Hotels &'' Resorts is the second largest hotel company in the world, with over 845 thousand rooms under management. Its portfolio includes over 9,000 hotels across 80 countries, covering all major lodging categories and brands like Wyndham Grand, Ramada by Wyndham, and Days Inn by Wyndham.

Which company is the largest by room count, and which is the fastest-growing?

The largest hotel company by room count is Marriott International, Inc., with over 790 thousand rooms. The fastest-growing hotel company is La Quinta Holding Company, which has experienced an average annual growth rate of around 10% since 2014.

La Quinta Holding Company operates more than 900 hotels across the US and Mexico, offering a blend of midscale and economy lodging options in urban and rural locations. It is also known for its loyalty program for frequent travelers—the MyWQ Rewards Program.  Hyatt Hotels Corporation—with over 600 thousand rooms—is growing rapidly; it has announced plans to open 200 new hotels globally by 2021.

Choice Hotels International, Inc.—with nearly 550 thousand rooms—is also growing at an impressive rate, having opened and acquired more than 15,000 new rooms in the past year.  These four companies stand out as some of the biggest hotels and REITs with strong growth potential.

Hotel Companies and REITs make money.

Hotel companies and REITs generate revenue primarily from room occupancy and guest services. Room occupancy refers to the number of occupied hotel rooms, often measured as an average percentage of all available rooms across the entire portfolio. Hotel companies also make money through amenities such as restaurants, bars, spa services, retail shops, business centers, and other on-site activities.

Some hotel companies generate revenue from advertising or sponsorships with local businesses. REITs typically generate income through rental payments on properties they own or manage. They also earn money by leasing out space within their hotels to third parties. For example, some REITs may lease out space for restaurants or stores to retailers or rent out banquet halls for special events.

Finally, hotel companies and REITs may earn money by selling properties or equity investments in other real estate-related entities. For example, some hotels have used their portfolios to invest in vacation rental businesses or other hospitality-related ventures.

Both types of entities may make money by entering into franchise agreements with third parties, allowing them to gain access to new markets and tap into new sources of revenue.  In summary, hotel companies and REITs generate income by combining room occupancy and guest services revenues and rental payments received on properties they own or manage.

What are the benefits of investing in hotel companies and REITs?

Investing in hotel companies and REITs can be a lucrative opportunity for investors looking for long-term capital appreciation and income generation. Hotel REITs offer investors the potential to benefit from the ownership of real estate assets and potential returns from hotel operations.

Since hotels have relatively low operating costs compared to other types of properties, they often generate higher returns than other investments with similar risk profiles.

Hotel REITs also offer greater liquidity than traditional real estate assets, making them an attractive option for those seeking shorter-term investments or more flexibility with their capital.

Furthermore, investing in hotel companies and REITs provides diversification benefits by exposing investors to different markets worldwide; this helps reduce risk by spreading investments across many different geographic locations and business sectors.

Overall, investors looking for a more reliable way to invest in real estate should consider investing in hotel companies and REITs. These entities offer the potential for long-term capital appreciation and income generation while also providing greater liquidity than traditional real estate assets.

They can provide diversification benefits through exposure to various markets around the world. With the proper research and strategy, investors can make informed and profitable decisions when investing in hotel companies and REITs.

Stock prices for hotel companies and REITs have been performing over the past year

.The stock prices of hotel companies and REITs have performed relatively well over the past year despite the global pandemic. Marriott International, Inc., for example, saw its stock price increase by nearly 10% during this period. Similarly, La Quinta Holding Company’s stock price increased by more than 14%. On the other hand, Hyatt Hotels Corporation’s stock price declined slightly but remained above the pre-pandemic levels.

These figures demonstrate that these major hotel companies and REITs can perform relatively well regardless of macroeconomic conditions, making them attractive investments for real estate investors.

Furthermore, as many experts anticipate a gradual return in travel demand as economies reopen and restrictions on movement ease, real estate investors may find further opportunities for growth in these companies.  By monitoring these major players' performance and potential expansion plans, investors can make decisions that best suit their individual needs.

In conclusion, hotel companies and REITs are two of the most important aspects of the real estate industry. Despite the challenges posed by a global pandemic, big hotel chains and REITs continue to be some of the biggest players in both operators and investments worldwide.

Understanding how these major entities generate income and monitor their expansion plans is essential for real estate investors looking to maximize investment returns. With careful research into these key components, investors can gain an edge over other market participants.

FAQS

What are their stock symbols?

Marriott International Inc. (MAR), Wyndham Hotels &'' Resorts (WH), La Quinta Holding Company (LQ), and Hyatt Hotels Corporation (H).

What is their market capitalization?

Marriott International Inc. has a market capitalization of over $40 billion, Wyndham Hotels &'' Resorts has a market capitalization of over $7 billion, La Quinta Holding Company has a market capitalization of over $4 billion, and Hyatt Hotels Corporation has a market capitalization of over $14 billion.

What is their dividend yield?

Marriott International Inc. has a dividend yield of 1.07%, Wyndham Hotels &'' Resorts has a dividend yield of 2.23%, La Quinta Holding Company has a dividend yield of 0.86%, and Hyatt Hotels Corporation has a dividend yield of 1.76%.

Conclusion

The world of hospitality has many market players with significant value to bring to the table. Big Hotel companies and REITs continue to find new ways to drive customer experience, create attractive financial returns, and transform the industry using ever-evolving strategies. It is up to individual investors or savvy entrepreneurs to decide whether this investment is right for them. However, evaluating the varied options available is key to success in this sector.