Budget hotel chain Hampton by Hilton has surpassed upscale brands in global room revenue, according to the annual Allianz Partners Big Book of Travel Data report. The report reveals that Hampton by Hilton generated $10.2 billion in room revenue, surpassing Hilton Hotels & Resorts ($9.3 billion) and Marriott International ($8.8 billion). This achievement highlights the success of Hampton by Hilton’s strategy of offering low prices that appeal to the masses, similar to the Ikea model.
The figures represent the gross room revenue, which refers to the income gained from renting rooms. Allianz Group and IdeaWorksCompany calculated these numbers based on average room revenue (RevPAR) and global room count statistics, as specific revenue figures are not publicly disclosed. Hampton by Hilton’s impressive market position, global growth, guest satisfaction, and innovation have contributed to its success.
Joining Hampton by Hilton at the top of the list are fellow mid-range chains Holiday Inn Express ($8.5 billion) and Courtyard by Marriott ($7.1 billion). Combined, the nine largest hospitality brands generated $80.06 billion in room revenue in 2022, a significant increase from $53.29 billion in the previous year as travel recovered post-pandemic.
The rising cost of hotel stays has led travelers to search for more affordable alternatives. In cities like New York, Chicago, Miami, and Boston, hotel rates have soared by as much as 226% between 2019 and 2022. While prices have started to stabilize, demand for travel remains high as people take long-delayed trips. Affordable options like Hampton by Hilton continue to be attractive to travelers who want to explore while staying within their budget.
At the annual Americas Lodging Investment Summit in Los Angeles, Marriott CEO Anthony Capuano expressed optimism about the hotel industry’s future. Despite concerns about the economic environment, Capuano noted that Marriott was not experiencing any negative trends. Predictions from the conference indicate a projected 2% increase in average hotel rates in the U.S. by the end of 2023, compared to the steep 19% rise between 2021 and 2022.
In conclusion, Hampton by Hilton’s budget hotel chain has outperformed higher-end brands in terms of global room revenue. The company’s success can be attributed to its commitment to offering affordable prices while maintaining a strong service culture and innovative approach. As travel demand continues to rise, the hospitality industry can expect affordable options like Hampton by Hilton to remain popular among budget-conscious travelers.
