The hospitality industry took a major hit in 2020 due to the COVID-19 pandemic, but some hospitality investment companies managed to withstand the storm and position themselves for future growth. Companies like Marriott International, Hilton, and IHG continue to expand globally through new hotel development and strategic acquisitions. At the same time, alternative accommodation providers like Airbnb recovered more quickly by pivoting to emphasize private and remote rentals. As travel rebounds, these leading hospitality investment firms are poised to capitalize.
Marriott leads hospitality investment with over 7,600 properties globally
Marriott International tops the list with over 1.4 million rooms globally across 30 brands. Its massive scale and loyalty program gives it an advantage in bouncing back post-pandemic. In 2020, Marriott saw occupancy and RevPAR declines but continued expanding key brands like AC Hotels and Moxy Hotels while entering new markets. The company is bullish on leisure and bleisure travel driving bookings.
Hilton positions for future hospitality investment growth
Hilton also weathered 2020 relatively well despite declining revenues, opening over 410 new properties. Business travel accounted for over 60% of Hilton’s 2019 revenues, so its ability to shift more towards leisure and drive direct bookings will be key. Hilton is well positioned to capture rebounding demand with its strong brand portfolio including luxury Waldorf Astoria and Conrad as well as midscale Tru.
IHG leverages scale and loyalty advantage
As the world’s fourth largest hospitality company, IHG saw global RevPAR drop nearly 60% in 2020. However, it opened 235 new hotels and signed 307 more properties in 2020. Going forward, IHG is focused on ramping up rooms growth for its mainstream brands like Holiday Inn and building on its success with AVANI luxury resorts. IHG’s sheer size and 89 million loyalty members give it resilience.
Airbnb benefited from increasing demand for private accommodations
As traditional hotels struggled, Airbnb saw its active listings in Q3 2020 exceed Q3 2019 levels. Airbnb benefitted from rising demand for domestic and long-term stays in private accommodations. While its IPO didn’t go as expected, Airbnb delivered promising Q3 2021 results and could be a leading alternative accommodations provider again.
Despite significant declines in 2020, major hospitality investment leaders like Marriott, Hilton and IHG are poised for growth based on their scale, brands and loyalty programs. At the same time, Airbnb rebounded by capitalizing on changing demand dynamics.