The hospitality industry has faced immense challenges during the COVID-19 pandemic, with travel restrictions and lockdowns significantly impacting hotels, restaurants and other tourism-related businesses. However, as the world emerges from the pandemic, hospitality is poised for a strong rebound. Key players driving renewed growth in the accommodation sector are major hospitality investment companies worldwide. These firms are making strategic bets by acquiring distressed assets, developing new properties and introducing innovative concepts. Their investments and expertise help revive consumer demand as people resume traveling for business and leisure.
Marriott tops ranking of hospitality investment leaders
According to the influential HOTELS annual ranking, Marriott International tops the list of the world’s largest hotel groups. With over 1.4 million rooms globally, Marriott has an unparalleled footprint spanning 139 countries. The hotel giant is focusing expansion efforts on lifestyle branded properties and all-inclusive resorts to capture shifting consumer preferences. For example, Marriott recently debuted the luxury brand JW Marriott in the Maldives to cater to high-end travelers. Other notable players include Jin Jiang International, Hilton Worldwide and InterContinental Hotels Group – all making big bets on high-growth markets like APAC.
Private equity giants see huge potential in hospitality turnaround
Global private equity firms like Blackstone, Brookfield Asset Management and Apollo Global Management are deploying billions in the hospitality sector. Using their deep pockets and operational expertise, these investment titans are snapping up discounted hotel assets and brands. For instance, Blackstone made waves in early 2022 by acquiring Extended Stay America, one of the biggest midscale hotel chains in the U.S., for $6 billion. With travel demand roaring back, mega deals like this could deliver outsized returns.
New hospitality concepts attract investor enthusiasm
Innovative hospitality models are also garnering significant funding from venture capital and growth equity firms. For example, Sonder Holdings which operates over 300 properties across 35 countries in a tech-enabled, flexible rental format, went public in early 2022 through a SPAC deal valuing it at $1.3 billion. Its backers include prestigious names like Fidelity Investments, Qatar Investment Authority and BlackRock. Similarly, blurring the lines between hotels and residential spaces, Niido Powered by Airbnb and Lyric Hospitality have raised upwards of $150 million each from leading real estate investors.
China-based groups consolidate positions in Asia market
Hospitality investment companies headquartered in China are cementing dominant positions across Asia by aggressively expanding portfolios. Country Garden’s hospitality unit has over 400 hotels in the pipeline on top of 95 currently operating properties. It aims to be sector leader within five years by targeting second and lower-tier Chinese cities. Another ambitious developer, Dalian Wanda is accelerating additions to its Wanda Hotels & Resorts luxury collection which already accounts for over 25,000 rooms. Both these companies and other Chinese players are capitalizing on rising incomes and domestic tourism in the region.
Despite pandemic pressures, major global and regional hospitality investment leaders are making big bets on the industry’s comeback. Their investments in branded hotel assets, innovative accommodation concepts and high-growth markets will be key drivers spurring the sector’s post-COVID revival.