Hotels, Motels & Resorts Industry Overview

Excerpt from Hotels, Motels & Resorts Report

Companies in this industry operate short-term lodging facilities, including hotels, motels, and resort hotels. Major companies include Accor (France), InterContinental (UK), and NH Hoteles (Spain), as well as US-based international giants such as Hyatt, Marriott, Starwood, and Wyndham.

Competitive Landscape

Business and tourist travel drive demand. Both are affected by the strength of the economy. The profitability of individual companies depends on efficient operations, because many costs are fixed, and on effective marketing. Large companies have advantages in economies of scale in operations, can more easily raise capital, and have strong name recognition. Small companies, such as boutique hotels, can compete effectively in favorable locations and by providing specialty services. The industry is fragmented: the 50 largest companies generate about 45 percent of revenue.

Products, Operations & Technology

Major industry product lines are room fees and sales of food, alcoholic drinks, and merchandise. Room fees account for 75 percent of industry revenue, food for 15 percent, and alcohol for 5 percent.