Combined Market Cap of World`s Five Largest Hotel Chains Up by $12B YTD, Despite Hotel Stocks Falling on Virus Fears

Although hotel stocks underperformed the broader economy in June for the fourth straight month, the market cap of the world’s largest hotel chains still recovered significantly this year.

According to data presented by, the combined market capitalization of Wyndham Hotels and Resorts, Choice Hotels International, Marriott International, Intercontinental Hotels Group, and Hilton Worldwide Holdings, as the five largest hotel chains in the world stood at $107.8bn last week, nearly a $12bn increase YTD.

Hilton and Marriot Hotels the Biggest Gainers, Market Cap Jumped by $8.8B in 2021

The year 2020 was probably the most challenging year for the hotel industry in decades. Although hotels worldwide implemented increased safety and sanitation measures and cautiously reopened for the summer travel season, all of them witnessed colossal revenue and market cap drops.

The first half of 2021 brought a long-expected recovery, with hotel stocks surpassing their pre-pandemic values. However, in June, the COVID-19 Delta variant brought fears of new restrictions and disruptions for the global hotel industry, causing stocks to drop again. Despite that, the market cap of the world’s largest hotel chains still recovered significantly.

The YCharts data show the market cap of Wyndham Worldwide, the biggest hotel chain in the world by the number of hotels, stood at $4.4bn in January. By June, the combined value of shares of the US corporation, which owns 8,092 hotels, jumped to nearly $7.2bn. Although this figure slipped to $6.61bn last week, it still represents a $2.2bn increase YTD.

The market cap of the second-largest hotel chain globally, Choice Hotels International, rose by $670 million in this period, rising from $5.9bn in January to $6.57bn last week. Intercontinental Hotels Group follows with a $230 million market cap increase.

Statistics show Hilton Worldwide Holdings and Marriot International were the biggest gainers this year, with their combined market cap rising by $8.8bn in the last seven months. In January, the combined value of shares of Marriot International stood at $42.8bn. After rising to $47.4bn in June, this figure slipped to$46.7bn last week, still almost a $4bn increase YTD. Hilton Worldwide Holdings follows with a $4.9bn market cap increase since the beginning of the year.

Global Hotel Industry Revenues to hit $192.3B in 2021, 47% Below 2019 Levels

Although hotel stocks bounced back in 2021, the entire sector is far from recovery. In fact, Statista data indicate it will take another two years for the global hotel industry to reach pre-pandemic levels.

In 2021, revenues are projected to grow by 33% YoY to $192.3bn, 47% less than in 2019. However, the following year is expected to witness even more significant growth, with hotels worldwide generating over $310bn in revenue, still significantly below pre-COVID-19 levels.

The year 2023 is forecast to witness $370.8bn in sales revenues, slightly above 2019 figures. By the end of 2025, the entire sector is expected to reach a $462.4bn value.

Statistics also show the number of users in the hotel industry plunged by 60% amid the pandemic, falling from 1.1 billion in 2019 to 438.5 million in 2020. Although Statista predicts this figure to rise to 576.5 million in 2021, that is still half the pre-pandemic levels.