The hotel brand that brings in the most revenue might surprise you
When you think of what type of hotel brings in the most cash, you’re likely thinking of something extremely posh — and brutal on your wallet — like St. Regis or Aman.
In fact, the revenue darling of the hotel orbit is actually a brand that’s pretty common at many exit ramps off U.S. interstate highways.
Hampton by Hilton is the brand that makes the most revenue by room out of any hotel company tracked by the 2023 Allianz Partners Big Book of Travel Data. The company’s estimated $10.2 billion in gross room revenue last year topped sister brand Hilton Hotels & Resorts ($9.2 billion), Marriott Hotels ($8.9 billion), Holiday Inn Express from IHG Hotels & Resorts ($8.5 billion) and Courtyard by Marriott ($7.1 billion), rounding out the top five, respectively.
“While we don’t disclose specific revenue figures, we’re extremely proud of the strong market position Hampton has attained as shown by its global growth, guest satisfaction and innovation," a Hilton spokesperson said via email to TPG when asked to confirm the data. "What began as a new idea in the hospitality industry nearly 40 years ago remains as innovative today as ever due to Hampton’s consistency, strong service culture, and signature Hamptonality. We look forward to continuing to deliver friendly and reliable stays that have solidified Hampton’s position as a leader in the industry.”
Some of these figures are based on Allianz estimations utilizing publicly available performance data and other metrics. IHG is the only one of the major hotel conglomerates to parse out systemwide room revenue, according to the report (and there was a slight discrepancy, with IHG noting Holiday Inn Express had a gross room revenue of $8.3 billion compared to the slightly higher Allianz estimate).
As far as parent companies go, Marriott International took the top spot with an estimated $61.4 billion in estimated room revenue last year.
Representatives with Marriott did not respond to TPG’s request for comment in time for publication.
Making sense of the numbers
Some of the data reflects the growing sentiment of a barbell effect taking place in the hotel industry: Demand is crowding around the ultra-luxury sector as well as middle-of-the-road brands like Hampton, Holiday Inn Express and Courtyard.
The idea is that there are a lot of newer, better-maintained products in this space, and travelers figure they can get more bang for their buck by staying at a great Courtyard property rather than an older upscale hotel. Plus, you’re still earning the same elite-qualifying nights in your go-to loyalty program, just as you would if you were staying in a luxury property.
Development trends reflect this demand trend, particularly in the affordable space: Marriott, Hilton and IHG account for nearly 70% of all the hotels in the U.S. development pipeline, according to second quarter data from Lodging Econometrics.
As for the brands getting the most developer attention, Home2 Suites by Hilton takes the top spot at 565 projects, followed by Marriott’s TownePlace Suites (345 projects) and Holiday Inn Express (306 projects). Hampton by Hilton (292 projects), Marriott’s Residence Inn (258 projects) and IHG’s Avid (132 projects) also account for a hefty number of hotels currently in various stages of development.
Of course, keep in mind Hilton and Marriott’s namesake brands occupy the second and third spot on room revenue rankings, respectively, so it isn’t like there is zero upscale or upper-upscale representation in terms of brands bringing in travel dollars.
These are some of the most popular hotel brands in the world and have the largest footprints in terms of locations: Marriott Hotels had 575 locations around the world at the end of 2022 — more than any other of Marriott International’s luxury or premium brands.
Hilton Hotels & Resorts had 604 locations at the end of 2022 — more than any other of Hilton’s upper upscale or luxury brands. For perspective, Hampton had 2,863 locations and Courtyard had 1,280.
The rise of the budget traveler — and using that to boost elite status
Expect more midscale and affordable brands to be your way to higher loyalty status in the future. Marriott, Hyatt, IHG, Hilton and Paris-based Accor all launched more affordable brands this year in a push to better appeal to travelers at all price points.
Hyatt’s Hyatt Studios is the Chicago-based hotel conglomerate’s push into the extended-stay travel sector. Accor launched in January the Handwritten Collection, a soft brand focusing on midscale independent hotels.
Marriott acquired Mexico-based City Express, a midscale brand, and continues to evaluate whether it can expand that brand globally like it did with AC, a brand with Spanish roots that Marriott acquired in 2011 and later took global. Marriott also has launched an affordable extended-stay brand, StudioRes, earlier this year.
Hilton launched the premium economy brand Spark at the top of the year and followed it with Project H3, a working title for its own extended-stay brand in the works.
We’re monitoring the developments, as most of these brands will allow travelers to earn elite-qualifying nights and points just as they would with their higher-priced siblings. But there are signals some might have different earning potential down the line.
One thing is clear, however: Affordable brands are getting the most love from their respective parent companies these days.
"I mean it's not sexy, OK? It's not as sexy as lifestyle or luxury," Hilton CEO Christopher Nassetta said earlier this year of his company’s push into economy brands with the launch of Spark. "But in terms of an opportunity to be a value contributor in the billions of dollars for this company and its shareholders, I'm as excited about this as anything else we've done."
Related reading:
- Best hotel credit cards
- When is the best time to book a hotel? Experts weigh in — and debunk a few myths
- The best credit cards to reach elite status
- A comparison of luxury hotel programs from credit card issuers
- Which credit cards offer the most lucrative rewards for hotel stays?
- The best hotel rewards programs in the world
TPG featured card
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| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
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Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.