5 Largest Hotel Chains in the US in 2022

In this article, we will discuss the 5 largest hotel chains in the US in 2022. If you want to read our discussion on the hospitality sector, go directly to the 15 Largest Hotel Chains in the US in 2022.

5. InterContinental Hotels Group PLC (NYSE:IHG)

Number of Hedge Fund Holders: 9

Number of Properties in the U.S.: 3,849

InterContinental Hotels Group PLC (NYSE:IHG) is a Denham, Buckinghamshire, England-based hospitality company with a significant presence in the U.S.

InterContinental Hotels Group PLC (NYSE:IHG) is experiencing strong growth in RevPAR as of Q3 2022. Experts believe that the stock could offer upside to investors in the future as the bottom line grows and long-term debt reduces. During Q3 2022, the company’s three upper-upscale tiers of properties, Kimpton, InterContinental, and Hotel Indigo brands, reported the highest average daily rates (ADR) in the Americas. The operator of the Crowne Plaza and Holiday Inn hotel franchise has over 50% of the properties located in the U.S. Furthermore, InterContinental Hotels Group PLC (NYSE:IHG) company has a strong loyalty program with over 100 million members. According to the hotel chain’s management, the members spend 20% more than non-members.

InterContinental Hotels Group PLC (NYSE:IHG) was held by 9 hedge funds as of Q3 2022.

4. Choice Hotels International, Inc. (NYSE:CHH)

Number of Hedge Fund Holders: 22

Number of Properties in the U.S.: 5,550

Choice Hotels International, Inc. (NYSE:CHH) is a Rockville, Maryland-based hospitality company that is one of the largest hotel chains in the U.S.

While Choice Hotels International, Inc. (NYSE:CHH) missed the EPS forecast for Q3 2022, the company outperformed the top-line estimates for the quarter. Like other hotel chains, Choice Hotels International, Inc.’s (NYSE:CHH) YoY improvement in RevPAR was strong, increasing by 18.3%. Furthermore, the stellar performance of the upscale segment reflects that the company’s acquisition of Radisson Hotel Group Americas was the right decision. Choice Hotels International, Inc.’s (NYSE:CHH) pipeline for the extended stay segment observed an increase of 45% YoY to 470 units.

Here’s what Baron Funds said about Choice Hotels International, Inc. (NYSE:CHH) in its Q2 2022 investor letter:

“Shares of hotel franchisor Choice Hotels International, Inc. (NYSE:CHH) declined on investor concerns around a possible economic slowdown or recession. We retain conviction. Choice is not experiencing a slowdown in visitation or spend levels at its properties and continues to generate strong results. The company recently acquired the Radisson hotel brand in the Americas, an asset-light transaction that should add significantly to shareholder value.”

3. Hilton Worldwide Holdings Inc. (NYSE:HLT)

Number of Hedge Fund Holders: 60

Number of Properties in the U.S.: 5,582

Hilton Worldwide Holdings Inc. (NYSE:HLT) is a McLean, Virginia-based hospitality company with a footprint of 18 brands and over 7,000 properties.

To boost shareholder return, Hilton Worldwide Holdings Inc. (NYSE:HLT) increased the share buyback plan from $2.5 billion to $4.3 billion on November 11. For Q3 2022, Hilton Worldwide Holdings Inc. (NYSE:HLT) reported that the company’s top line increased by 35.4% YoY to $2.37 billion, and EPS of $1.31 was seven cents higher than the consensus forecast. For Q4 2022, Hilton Worldwide Holdings Inc. (NYSE:HLT) anticipates EPS to be in the range of $1.15 to $1.23. The midpoint of $1.19 is one cent higher than the analysts’ estimates.

Here’s what Pershing Square Holdings said about Hilton Worldwide Holdings Inc. (NYSE:HLT) in its Q2 2022 investor letter:

“Hilton Worldwide Holdings Inc. (NYSE:HLT) is a high-quality, asset-light, high-margin business with significant long-term growth potential, led by a superb management team. The unforeseen arrival of the COVID-19 pandemic catalyzed a rapid and near-complete standstill in global travel, with RevPAR (the industry metric for same-store sales at a given hotel) down roughly 90% at the nadir of the pandemic. We increased our investment in Hilton during the pandemic as we believed the economic dislocation from COVID-19 would prove to be transient and that industry projections regarding the timeline for recovery were too pessimistic.

From the moment the pandemic began, Hilton’s management team took decisive actions to ensure the company not only managed through what it knew would be a challenging period, but also positioned the company to generate improved margins, cash flows, and investment returns once the business recovered. In hindsight, Hilton’s experience with COVID-19 – the 100-year proverbial flood – affirmed the company’s unique high-quality, asset light, high-margin business model, and reinforced our belief that Hilton deserves a premium valuation.

While Hilton entered 2022 impacted by the Omicron variant, results have vastly improved throughout the year as COVID-19 has evolved towards a more endemic virus, and consumer behavior has adapted accordingly. In recent months, Hilton’s system-wide RevPAR has surpassed 2019 levels and continues to improve. Recent strength has been led by domestic leisure travel occasions as consumer spending continues to shift from goods to services. …” (Click here to read the full text)

2. Marriott International, Inc. (NASDAQ:MAR)

Number of Hedge Fund Holders: 46

Number of Properties in the U.S.: 5,673

Marriott International, Inc. (NASDAQ:MAR) is a Bethesda, Maryland-based company that is a renowned operator, franchisor, and licensor of hotels globally. The company has over 30 brands under its umbrella. These brands have more than 8,000 properties spread across 139 countries.

Marriott International, Inc. (NASDAQ:MAR) is aggressively working on enhancing shareholder returns as it increased quarterly dividends by 33% to 40 cents following Q3 2022 results. Meanwhile, the board also increased the authorization of share buyback by 25 million shares. The majority of the hotel portfolio under the banner of Marriott International, Inc. (NASDAQ:MAR) is franchised, and the company only receives the base and franchise fees. Marriott International, Inc. (NASDAQ:MAR) has a pipeline of 485,000 rooms under development.

Aristotle Capital Management shared its stance on Marriott International, Inc. (NASDAQ:MAR) in its Q1 2022 investor letter. Here’s what the firm said:

“Marriott International outperformed in the first quarter following a better-than-expected earnings report for the company’s fourth quarter of 2021. During the pandemic, the company reduced expenses which improved operating leverage as revenue recovers. Expectations for travel in 2022 have improved as COVID cases have declined. The company has a strong pipeline of new hotels coming into the Marriott system. There are some indications that business-related travel is starting to recover.”

1. Wyndham Hotels & Resorts, Inc. (NYSE:WH)

Number of Hedge Fund Holders: 30

Number of Properties in the U.S.: 6,102

Wyndham Hotels & Resorts, Inc. (NYSE:WH) is a Parsippany-Troy Hills, New Jersey-based hotel chain operator that distinguishes itself as the biggest hotel franchisor in the world and also happens to be the largest hotel chain in the U.S.

Wyndham Hotels & Resorts, Inc. (NYSE:WH) posted its Q3 2022 results on October 25 and outperformed the revenue and earnings forecast for the period. The company reported revenue of $407 million which crossed the consensus forecast of $379 million. Wyndham Hotels & Resorts, Inc. (NYSE:WH) also increased the 2022 EPS forecast to $3.84 to $3.89, as compared to a previous range of $3.51 to $3.63. Meanwhile, the consensus estimate stands at $3.61. Furthermore, Wyndham Hotels & Resorts, Inc. (NYSE:WH) announced a share buyback plan of $400 million to increase shareholder returns during these uncertain times.

Citadel Investment Group raised its stake in Wyndham Hotels & Resorts, Inc. (NYSE: W.H.) by 43% during the third quarter of 2022.

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