STR Rankings: The Largest Hotel Companies As Of 2016
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The world's largest hotel companies are getting even bigger. Despite many major companies reporting weak RevPar growth last year, most firms still consider physical expansion the key to success and are launching new brands and boosting pipelines.
In addition to increasing construction, RAR Hospitality founder and chief executive Robert Rauch said the industry is hoping to grow by using technology to simplify the hotel experience and better connect to guests. From Marriott to Hilton, STR recently ranked the world's largest hotel companies in 2016. Here are the top five.
1. Marriott International
Marriott International became the world's largest hotel company following its $13.6B takeover of Starwood Hotels & Resorts Worldwide. The hospitality company has been ramping up its expansion with ambitious plans to open a new Marriott hotel every 15 hours over the course of 2017. Marriott has 2,045 properties coming down its pipeline, promising to open a total of 348,422 new rooms in the near future. Despite geopolitical headwinds, the firm is projecting 2017 to be a strong year.
2. Hilton Inc.
After watching its stock plummet over 70% year to date, Hilton Worldwide Holdings announced plans to change its name to Hilton Inc. and buy back $1B worth of shares earlier this year. The move tops off the firm's major business reorganization that effectively separated the company into three entities: Hilton Inc. and subsidiaries Park Hotels & Resorts Inc. and Hilton Grand Vacations Inc. The firm has 1,774 properties and 274,483 rooms coming down its pipeline.
3. InterContinental Hotels Group
InterContinental Hotels Group is pushing forward a pipeline of 1,379 properties and 221,281 rooms, 400 of which are under construction in San Diego's downtown waterfront district. Moving forward, IHG executive Adam Glickman said the company is responding to customers' willingness to pay more for a better experience. This includes increased technology and personalized experiences, especially considering the importance of review sites like TripAdvisor.com.
4. Wyndham Worldwide
Wyndham Worldwide runs numerous hospitality brands, including hotels Wyndham Hotels & Resorts, Ramada and Days Inn. The company was at the center of a major cybersecurity case last year after hackers stole more than 600,000 credit card records in three data breaches, making more than $10M in fraudulent charges. The Federal Trade Commission sued the hotel operator for failure to maintain reasonable and appropriate data security measures and ordered Wyndham to implement a 20-year comprehensive information security program, effectively pushing other hoteliers to update their systems too. Wyndham has more than 1,000 properties and 124,000 rooms in its development pipeline.
5. AccorHotels Group
French hotelier AccorHotels has 737 properties and 136,553 rooms in its pipeline. Last year the firm launched a new brand specifically to cater to Millennials called Jo&Joe, and plans to open 50 locations by 2020 in key European cities and Brazil. The brand mixes hostel-like features like a shared kitchen with cool sleeping experiences, including yurts, hammocks and caravans.