Lodging
Companies in this industry operate hotels, motels, resorts, casino hotels, and bed and breakfast inns, along with RV parks, recreational camps, and rooming and boarding houses. Major companies include Hilton, Las Vegas Sands, Marriott, and MGM Resorts (all based in the US), as well as Accor (France), InterContinental (UK), and SJM Holdings (Hong Kong).
Annual revenue for the hotel industry worldwide was forecast to exceed $550 billion in 2018, up from about $500 million in 2015, according to Statista. Increasing travel to the Asia/Pacific region, Latin America, and North America is driving global growth in the lodging industry. Europe is the world’s top market for international tourism spending, followed by Asia/Pacific and the Americas.
The US lodging industry consists of about 70,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $215 billion.
Competitive Landscape
Business and leisure travel drive demand. Both are affected by the strength of the economy. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have advantages in economies of scale in operations, can more easily raise capital, and have strong name recognition. Small companies can compete by offering personalized service and a unique customer experience. The US industry is fragmented: the top 50 companies account for about 45% of revenue.
Products, Operations & Technology
Major industry product lines and services are hotel room fees; meeting room and conference facility fees; and sales of food and drinks. In the case of
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