What type of hotels make the most profit?

Hotels That Earned the Most Room Revenue in 2022
  • IHG Hotels & Resorts: $25.8 billion.
  • Accor Group: $18.08 billion.
  • Hyatt Hotels Corp: $13.9 billion.
  • Wyndham Hotel Group: $12.1 billion.
  • Choice Hotels: $8.8 billion.
  • Huazhu Group Ltd.: $7.8 billion.
  • Best Western: $7.1 billion.
  • BTG Hotels Group: $2.4 billion.




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Meetings and events: Whether you have a local business utilizing a conference room for a day, a wedding reception in one of your banquet halls, a full-week conference, or a tour group hosting a meal in between outings, meetings and event spaces can provide a massive source of revenue for hotels.

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Rooms often receive the highest return on investment since the overhead costs are the lowest. Because rooms generate a high amount of revenue, it's essential that hospitality organizations don't leave important decisions like pricing to spreadsheets and manual information inputs.

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A well run hotel should typically run ~25-40% EBITDA Margins meaning that if you purchase a hotel doing $1M in annual revenue you could expect to make $250k - $400k per year which is about 3-5x the average salary of a hotel manager.

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The hotel and lodging industry is lucrative enough to have created some of the heaviest financial hitters the world has ever seen. With a net worth of $21.8 billion, Sheldon Adelson is the 12th wealthiest American and the 24th richest man on Earth.

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Small hotels that have a high RevPAR and profit margin generally have a better ROI than those with lower numbers. Small hotels that have a high ROI are able to invest in improvements to the hotel, such as renovations or new amenities, which in turn can further improve their ROI.

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The Biggest Expense in a Hotel If you've guessed labor costs, you were right. On average, labor costs generate 40% of a hotel's total operating costs.

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Who dominates the hotel industry? Marriott International Inc. records the largest market share in the hotel industry with a market value of $58.7 billion. They are also the hotel brand with the highest sales number, generating $13.8 billion in sales in 2021.

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To determine the required profit after tax, it is necessary first to calculate the gross required return. Hence, to be able to generate the expected return on investment, the hotel will need to sell 9,698 room nights, or reach a 24.32% of occupancy.

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Overall, sales of food and beverages tended to be the second largest source of revenue.

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Hotel Brands: Who Owns What?
  • #1. Marriott International Inc. Brands.
  • #2. Hilton Worldwide Holdings Inc. Brands.
  • #3. Intercontinental Hotels Group PLC Brands.
  • #4. Wyndham Destinations Brands.
  • #5. Wyndham Hotels & Resorts.
  • #7. Accor Hotels.
  • #8. Choice Hotels International INC.
  • #9. Hyatt Hotels Corporation.


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The housekeeping team is arguably one of the most hard-working departments in the hospitality industry. Though their work is often unseen (and often taken for granted), housekeeping staff play a pivotal role in one of the most crucial aspects of any hotel — its cleanliness.

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The United States of America- Wyndham Hotels & Resorts Inc is the leading hotel chain in North America (by no. of properties). The company reported revenues of $1,565 million for the fiscal year ended December 2021 (FY2021), an increase of 20.38% over FY2020.

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For the second year in a row, one of its own, Hilton, came in first on the Fortune 100 Best Companies to Work For® 2020 list. Kimpton Hotels and Resorts also landed in the top ten and Hyatt, Marriott International, Inc and Four Seasons Hotels and Resorts also made the list.

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The average daily rate (ADR) was roughly 97.61 U.S. dollars as of October 2020, which shows a decrease since the previous year. Similar to RevPAR, average daily rates (ADRs) of U.S. hotels also tend to be lower during the winter.

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With fewer rooms, guests at small resorts may have less privacy, as public spaces and common areas are likely to be more crowded. Small resorts often charge higher rates due to the personalized experience they offer, and because they have fewer guests to spread the cost of operation over.

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