Marriott Leads the Global Rankings of Hotel Groups

The hospitality sector globally is currently experiencing intense competition for growth, as hotel groups strive to enlarge their holdings and gain a secure position in developing economies. According to the most recent global rankings of hotel groups from MKG Consulting, the “millionaires’ club”—brands that have over one million rooms worldwide—has just accepted a new member: H World Group.

H World Group’s tremendous rise, joining industry giants Marriott, Jin Jiang (Radisson), and Hilton, emphasizes the relentless pursuit of scale in a cutthroat industry. Nevertheless, as hotel chains grow quickly, worries about a potential excess of capacity are becoming more prevalent.

The Millionaires’ Club Expands

MKG Consulting’s 2024 report emphasizes the dominance of the leading hotel organizations; Best Western—ranked last among the top twelve—was the only one to see a growth decline (-2.1%). On the other hand, Oyo was in the lead with an astounding 38.7% growth rate, followed by H World Group at 20.3%. The latter’s entry into the millionaires’ club is a substantial accomplishment, and its portfolio now has over one million rooms. Marriott, Jin Jiang, Hilton, and now H World Group make up this exclusive group, which is propelled by both organic growth and calculated acquisitions.

The most significant advancement in 2024 has come from H World Group, which was formerly known as Huazhu. Its collection consists of about 11,000 hotels operating under the Huazhu brand, which accounts for about one million rooms, and 122 hotels (26,000 rooms) operating under its Western subsidiary, Deutsche Hospitality (previously Steigenberger Hotel Group). In an effort to further cement its position in the global market, the group intends to open 2,300 hotels in 2025.

Marriott Maintains Its Lead

According to experts, Marriott is still the undisputed champion and is “far from giving up its place.” The group, which conducts business in 144 nations and territories, added over 123,000 rooms to its collection in 2024. Its purchase of Hoteles City Express, which has been rebranded as City Express by Marriott, was a crucial move. This calculated expansion broadens Marriott’s appeal to a wider range of traveler categories. Jin Jiang, the owner of the Radisson group, and Hilton are ranked second and third, respectively, and are using organic growth and acquisitions to stay competitive.

Strategic Expansion and Emerging Markets

The desire to fill the gaps in regional networks is what fuels the race for volume growth, which aims to balance the risks of fluctuating demand across continents. Hotel groups are concentrating on growing in high-potential regions like India, Saudi Arabia, Southeast Asia, and Africa. Although these markets present untapped potential, they also present difficulties because rapid expansion could result in overcapacity, which would necessitate future regulation to prevent oversupply.

H World Group’s expansion is a prime example of this pattern. Its aggressive expansion in Asia, particularly through the Huazhu brand, is bolstered by its presence in Europe through Deutsche Hospitality. This strategy that is used in both regions allows the group to serve a wide spectrum of tourists and take advantage of both domestic and foreign markets.

The Risk of Overcapacity

Experts caution about possible risks even though the growth race fosters market reach and innovation. The quick addition of rooms could lead to overcapacity, especially in fiercely competitive industries where demand might not keep up with supply. This risk emphasizes how crucial it is to have strategic planning in place to guarantee long-term expansion. To prevent inefficiencies that could lower profitability, hotel companies must balance their goals with market conditions.

A New Era for Global Hospitality

The 2024 global rankings highlight the competitive and dynamic hospitality sector; H World Group’s entry into the millionaires’ club represents a change in the world market. The industry’s emphasis on scale, diversification, and the robust performances of Jin Jiang and Hilton, as well as Marriott’s continued dominance, are all indicative of this. The pursuit of market penetration continues. Hotel groups, with their sights set on emerging economies, are pouring investments into fresh properties. The trick now is balancing quality with sustainability while trying to keep pace with what today’s travelers actually want. The competition to expand isn’t likely to diminish anytime soon, and the global hospitality sector is set for an interesting time, certainly into 2025.

The 2025 Ranking of Hotel Groups

Source: MKG Consulting