In the competitive world of hospitality, hotels employ diverse strategies to maximise revenue.

Some aim for the stars, charging exorbitant rates for an extravagant experience like that at the opulent $28,000-a-night top suite at Dubai’s renowned Burj Al Arab, or a Vegas hotel’s $150,000-a-night extravaganza for a party of 12, complete with a basketball court and private masseuses.

Others adopt the “Ikea model,” raking in profits by offering low prices that bring in large numbers of visitors.

According to the annual Allianz Partners Big Book of Travel Data report, Hampton by Hilton (HLT) has emerged as the global leader in room revenue, surpassing even its upscale competitors.

The budget-to-midrange hotel chain amassed a staggering $10.2 billion in room revenue in 2022, outstripping Hilton’s more upscale Hilton Hotels & Resorts, which secured $9.3bn, and Marriott International, with $8.8bn.

The reported figures exclusively pertain to gross room revenue, representing income derived solely from room rentals.

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While not publicly disclosed, this information was calculated by Allianz Group and the IdeaWorksCompany based on average room revenue (RevPAR) and global room count statistics.

A spokesperson for Hilton stated: “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. 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.”

Mid-range chains in the mix

Among the top five in the rankings, fellow mid-range chains also made their mark. Holiday Inn Express and Courtyard by Marriott secured $8.5bn and $7.1bn in revenue respectively.

Together, the room revenue generated by the world’s nine largest hospitality brands amounted to a whopping $80.06bn in 2022, marking a substantial increase from the $53.29bn recorded in 2021 as post-pandemic travel rebounded.

Hotel prices remain high amid rising demand

Despite the surge in hotel prices, driven partly by post-pandemic pent-up demand, travellers continue to seek affordable alternatives.

Estimates reveal that average hotel stays skyrocketed by 226% in New York, 200% in Chicago, 196% in Miami and 189% in Boston between 2019 and 2022.

While prices have stabilised somewhat with cooling inflation, the demand for travel remains robust, as many embark on postponed trips. Any improvements in pricing are likely to resemble a plateau rather than a significant decrease.

At the annual Americas Lodging Investment Summit in Los Angeles, Marriott CEO Anthony Capuano expressed confidence, stating that the hotel chain wasn’t witnessing discussions about headwinds or a recessionary environment.

Conference projections indicated that the average hotel rate in the US was expected to increase by 2% by the end of 2023, a far cry from the 19% surge seen between 2021 and 2022.

 Affordable lodging options continue to be a beacon for travellers in search of cost-effective ways to explore the world.