The hotel brand that brings in the most revenue might surprise you

25.08.2023 - 21:53 / thepointsguy.com

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.

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