Top Ten Hotel Management Companies in the United States

Every year, Hotel and Motel Management Magazine posts the top hotel management companies. The next two years may see some slight declines by some opinions and slight increases due to international travelers coming to the United States from overseas where the Eurodollar makes the United States a bargain vacation destination. We will take a look at the top ten players, by rank of the number of hotel guestrooms. Since this number can change daily, due to hotel re-flagging, the most official public rankings for 2006 are the basis of this report, released in September, 2006.

InterContinental Hotels Group-This company was number 1 in 2005, and 2006. It is the parent company of the Holiday Inn and Holiday Inn Express chains, and with the revamping of that chain, has maintained its number one position with over 537,000 guestrooms. In addition to the Holiday Inn chain, it also has the more upscale Intercontinental Hotels. Because of its general appeal to all segments- upper-class, business and family travelers, it is expected to maintain a strong position in the next 5-10 years. It should experience continued growth in the limited service franchise hotel area, as well.

Wyndham Hotel Group-Number 2 in 2006, and in 2005 was actually Cendant Corporation. It bought the Wyndham Hotel Chain, and Wingate Inns, and decided to take on their name, to shed the lower, economy reputation of Cendant. In addition to buying the Wyndham Chain from Blackstone Group, they also bought the Baymont Franchise from Blackstone, upscaled their Ramada chain with higher standards, converting their Amerihost chain over to Baymonts, and update the rest of their economy hotels-such as Days Inn, Knight Inn, and Travelodge. The newer Wyndham Hotel Group has been doing some moving and shaking, and they are expected to settle down a little and get the company to gel for the next 5-10 years. They have a good grasp in the lower and middle franchise hotel segments, with over 533,000 guestrooms.



Marriott International-This chain was number 3 in 2005 and 2006, and has been a consistent hotel chain, while it's competitors are may seem over-active, by comparison. Marriott is a strong corporate and mid to upper-scale chain with it's brand loyalty programs, extended stay-traveler concepts, such as Residence Inns and Fairfield Inns and consistency of standards that it has always maintained. These things are what have made it one of the top hotel management companies, year after year. It should maintain its stable grasp of the travel market for the next 5-10 years, with over 507,000 rooms.

Hilton Hotels Corporation-The Hilton chain, with 488,000 guestrooms, has gone through a few sales and since this list came out, has been also bought by Blackstone Group. Blackstone Group is a wheeler-dealer REIT that has bought, sold and own chains such as LaQuinta, Baymont, Wyndham, and Hilton is being sold to them in a 20 billion dollar deal. Obviously, Blackstone Group has been involved in top hotel management companies, but they are not listed as one. It remains to be seen what will happen with Hilton in the next 5-10 years, as Blackstone Group is known for making hotel chains more profitable, through downsizing in management, cost-cutting, showing a nice profit, and then selling off.

Accor North America-was the parent of Red Roof Inn brand, but in September, 2007 sold the franchise after this report came out. They dropped in 2006 to number 5, from number 4 in 2005. They also own the Sofitel hotel chain, Motel 6, Club Med and many other boutique type hotels. It remains to be seen where they will stand in the next 5-10 years, as they cover every segment from economy to the upper-upscale. At number 5, they still have over 475,000 guestrooms.

Choice Hotels International is the parent company of Comfort Inn, Sleep Inn, Econolodge, Clarion, Quality Inn, and is the only ''franchisor-only'' in the top 10 list. Because they do not own any hotels, only control through franchisees, they have maintained a constant, but dropped from number 5 in 2005 to number 6 in 2006, with over 428,000 guestrooms.

Best Western International is the only ''membership-only'' hotel company in the top ten. The Best Western chain has been around a long time, and is in the process of updating their look at the member's hotels. The concept of membership-only instead of franchisees, allows the Best Western owners to govern themselves through election of an executive committee, and the membership votes on any chain-wide changes. While it has been at number 7 for 2005 & 2006, with 317,000 guestrooms, they could see some growth up the list in the next 5-10 years by re-flagging of other franchise chain hotel owners.

Starwood Hotels and Resorts are number 8 in 2005 and 2006 with over 261,000 rooms, and mainly operate Westins, Sheratons and Four Points by Sheraton, and some upscale, boutique hotels. They have revamped the Sheraton chain, and made it a player in the corporate market. That brand should see steady growth in the next 5-10 years, because of its target market.

Carlson Hotels Worlwide-owns the Radisson and Country Inn and Suites brands and several others, which span the economy to luxury brands. Their diversification across markets and the growth and revamping of Radisson has moved them up from number 10 in 2005 to number 9 in 2006, with over 146,000 guestrooms.

Global Hyatt Corporation with 113,000 guestrooms in the Hyatt brand, rounds out the list at number 10 in 2006, down from number 9 in 2005. Since the Hyatt brand has focused on the up-scale end, with its launch of Hyatt Place, a business traveler, extended-stay type of property, it could start moving back up the list of top hotel management companies.

The hotel industry is always looking for ways to improve customer satisfaction, and you can count on this top ten list to continue to do it, as they have become known to do.