20 Largest Hotel Chains In The World
In this article, we will be taking a look at the 20 largest hotel chains in the world. To skip our detailed analysis, you can go directly to see the 5 Largest Hotel Chains in the World.
The hospitality industry is not just one of the largest industries in the world, it is also one of the most important in driving tourism which is crucial to the economy of many countries. However, no other industry felt the impact of the Covid-19 pandemic more than the hospitality industry. According to NPR, during 2020, the hotel occupancy rate in the U.S. was just 44% and revenue per room versus 2019 was down by nearly half. Many smaller, independent hotels had to close down while the major ones had to let go thousands of employees to ensure sustainability.
However, 2022 has been a year of recovery for the hospitality industry. The hotel industry recovery beat estimates which resulted in higher than expected average daily hotel rates and revenue per available room. While growth will continue in 2023, the expected economic headwinds could put a cap on this growth. Inflation and higher interest rates have reduced the disposable income of many people while the threat of a recession has seen industries slowing down. However, despite these issues, hotel occupancy rate for 2023 is still expected to be around 63.6%, much better than 2020.
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Another challenge being faced by hotels is Airbnb, Inc. (NASDAQ:ABNB) which was established in 2008. Airbnb, Inc. (NASDAQ:ABNB) saw significant growth over the next decade and a half, emerging as a real competitor for the hotel industry. However, there has been a significant impact on real estate because of Airbnb, Inc. (NASDAQ:ABNB) as more and more people look to rent out their properties through the platform to maximize earnings,