5 Most Valuable Hotel Companies In The World

In this article, we discuss 5 most valuable hotel companies in the world. If you want to see more companies in this selection, check out 16 Most Valuable Hotel Companies In The World. 

5. Galaxy Entertainment Group Limited (OTC:GXYEF)

Market Capitalization as of February 8: $32.367 billion

Galaxy Entertainment Group Limited (OTC:GXYEF) is a Hong Kong-based investment holding company, engaged in the gaming, entertainment, and construction materials businesses in Macau, Hong Kong, and Mainland China. The company  owns and runs integrated resorts, entertainment and food establishments, five-star hotels, and casinos. Galaxy Entertainment Group Limited (OTC:GXYEF)’s market cap on February 8, 2023 stood at $32.3 billion, making it one of the most valuable hotel companies in the world. 

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

Market Capitalization as of February 8: $39.875 billion

Hilton Worldwide Holdings Inc. (NYSE:HLT) was founded in 1919 and is headquartered in McLean, Virginia. It is a hospitality company that owns, leases, develops, and franchises hotels and resorts. It operates hotels under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Tempo by Hilton, Motto by Hilton, Signia by Hilton, Hilton Hotels & Resorts, Curio Collection by Hilton, DoubleTree by Hilton, Tapestry Collection by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, and Hilton Grand Vacations. It is one of the most valuable hotel companies worldwide. The market cap on February 8 stood at nearly $40 billion. 

Here is what Pershing Square Holdings specifically 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)

3. Las Vegas Sands Corp. (NYSE:LVS)

Market Capitalization as of February 8: $43.839 billion

Las Vegas Sands Corp. (NYSE:LVS) develops, owns, and manages integrated resorts in Macau and Singapore. Its brands include The Venetian Macao Resort Hotel, the Londoner Macao, The Parisian Macao, The Plaza Macao and Four Seasons Hotel Macao, Cotai Strip, the Sands Macao, and Marina Bay Sands. As of December 30, 2022, Las Vegas Sands Corp. (NYSE:LVS)’s annual revenue stood at $4.11 billion, compared to $4.2 billion in the same period in 2021. With a market cap of almost $44 billion, Las Vegas Sands Corp. (NYSE:LVS) is one of the most valuable hotel companies. 

Baron Funds made the following comment about Las Vegas Sands Corp. (NYSE:LVS) in its Q4 2022 investor letter:

“Certain travel-related businesses remain cyclically depressed, not secularly challenged, and should rebound as economic strength re-emerges. For example, the business operations of Macau-centric casino and gaming companies such as Las Vegas Sands Corporation have yet to recover due to the ongoing COVID-19 challenges in China. We expect business to rebound sharply when economic growth recovers just as it did in Las Vegas.

Following strong absolute and relative share price performance in 2022 – Las Vegas Sands Corporation’s shares increased 23% while most other U.S. casino and gaming companies declined anywhere from 20% to more than 50% – we reduced the Fund’s position in Sands in the most recent quarter

The company is a global leader in the development and operation of luxury casino resorts in Macau and Singapore, and it maintains a liquid and investment grade balance sheet. We anticipate that management may begin to return capital to shareholders through dividends and share buybacks as Singapore and Macau recover.

We have maintained a position in the company because we expect business activity in Macau to recover in the next few years, and we believe the shares are attractively valued relative to our assessment of replacement cost and its two- to three-year cash flow prospects.”

2. Oriental Land Co., Ltd. (OTC:OLCLF)

Market Capitalization as of February 8: $53.798 billion 

Oriental Land Co., Ltd. (OTC:OLCLF) operates and manages theme parks and hotels in Japan. It operates through Theme Park, Hotel Business, and Other Business segments. The company runs Tokyo Disneyland Hotel, Tokyo DisneySea Hotel MiraCosta, Disney Ambassador Hotel, and Tokyo Disney Celebration Hotel. At the end of March 30, 2022, Oriental Land Co., Ltd. (OTC:OLCLF)’s annual revenue came in at $275.7 billion, up from $170.5 billion as of March 30, 2021. Oriental Land Co., Ltd. (OTC:OLCLF) is one of the most valuable hotel companies in terms of revenue and market capitalization. 

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

Market Capitalization as of February 8: $54.97 billion

Marriott International, Inc. (NASDAQ:MAR) was founded in 1927 and is headquartered in Bethesda, Maryland. The company operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The company operates and manages multiple hotels, including JW Marriott, The Ritz-Carlton, Ritz-Carlton Reserve, W Hotels, The Luxury Collection, Bulgari, Marriott Hotels, and Sheraton brand names. At the end of December 2021, the annual revenue at Marriott International, Inc. (NASDAQ:MAR) came in at $13.85 billion, up from $10.5 billion in the prior year. It is one of the most valuable hotel companies to monitor. 

LRT Capital made the following comment about Marriott International, Inc. (NASDAQ:MAR) in its October investor letter:

“Marriott International, Inc. (NASDAQ:MAR) is the world’s largest hotel company followed closely by Hilton (HLT) and Intercontinental Hotels Group plc (IHG). The company owns a portfolio of brands from the low end (Courtyard, SpringHill Suites, Aloft), through the mid-tier (Marriott, Sheraton, Westin, Renaissance Hotels), to the luxury high end (JW Marriot, Ritz-Carlton, St. Regis). In total the company had 7,642 properties with over 1.4 million rooms as of the end of Q1 2021.

The majority (85%) of Marriott’s revenue comes from hotels in the United States, with the rest almost evenly split between Asia Pacific and Europe. Like it’s smaller peer, Hilton, the company today is almost exclusively a manager and franchisor of hotels, not a hotel owner. The company owns 66 hotels, manages 2,083 and franchises 5,493. Like all franchise-based businesses Marriott requires very little capital to grow as it utilizes the investment capital of its hotel-owners/partners to expand. Marriott currently faces a difficult operating environment due to the Covid-19 pandemic and uncertainty about the future of business travel. However, the company is an excellent operator with a somewhat leveraged capital structure (the company acquired Starwood Properties in late 2016) – if pent-up demand for travel materializes post-Covid, as we expect it will, the company will quickly go from losing money to raking in profits.”

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