In this article, we will discuss the 15 largest hotel chains in the US in 2022. If you want to skip our discussion on the hospitality sector, go directly to the 5 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).
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.
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Disclose. None. 15 Largest Hotel Chains in the US in 2022 is originally published on Insider Monkey.