GLOBAL HOTEL GIANTS: HOTEL GROUP RANKING 2025

The global hotel industry is experiencing intense competition for growth as hotel groups seek to expand their market share and establish themselves in developing countries. Recently, the "millionaires' club"—brands with over one million rooms worldwide—gained a new member, according to MKG Consulting's latest global hotel group ranking: H World Group. This remarkable rise of H World Group, which now positions itself alongside industry giants such as Marriott, Jin Jiang (Radisson), and Hilton, underscores the relentless pursuit of scale in this highly competitive sector. However, given the rapid growth of hotel chains, concerns about potential overcapacity are growing.

The millionaires' club is growing

MKG Consulting's 2024 report highlights the dominance of the leading hotel companies. Only Best Western—the last of the top twelve hotel groups—recorded a decline (-2.1%). Oyo, on the other hand, topped the list with an impressive growth rate of 38.7%, followed by the H World Group at 20.3%. The H World Group's ascent into the "millionaires' club" is a remarkable achievement, and its portfolio now includes over one million rooms. Marriott, Jin Jiang, Hilton, and now the H World Group form this exclusive group, whose growth is driven both organically and through targeted acquisitions.

The H World Group, formerly Huazhu, recorded the largest growth in 2024. Its portfolio includes approximately 11,000 Huazhu brand hotels with approximately one million rooms, as well as 122 hotels (26,000 rooms) of its western subsidiary Deutsche Hospitality (formerly Steigenberger Hotel Group). To consolidate its position in the global market, the group plans to open approximately 2,300 hotels by 2025.

Marriott maintains its leadership

According to experts, Marriott remains the undisputed champion and "has no intention of giving up this position." The group, which operates in 144 countries and regions, expanded its offerings by more than 123,000 rooms in 2024. The acquisition of Hoteles City Express, which was renamed City Express by Marriott, was a decisive step. This targeted expansion makes Marriott more attractive to a broader range of travelers. Jin Jiang, owner of the Radisson Group, and Hilton occupy second and third places, respectively, relying on organic growth and acquisitions to remain competitive.

Strategic expansion and emerging markets

The desire to close gaps in regional networks is driving the race for volume growth to offset the risks of fluctuating demand across continents. Hotel groups are focusing on growth in promising regions such as India, Saudi Arabia, Southeast Asia, and Africa. While these markets hold enormous potential, they are not without challenges, as too rapid expansion could lead to overcapacity, necessitating future regulations to prevent oversupply.

The expansion of the H World Group is a good example of this pattern. Its aggressive expansion in Asia, particularly through the Huazhu brand, is supported by its presence in Europe through Deutsche Hospitality. This strategy, pursued in both regions, enables the group to serve a broad spectrum of tourists and tap into both domestic and international markets.

The risk of overcapacity

While the growth trajectory promotes market reach and innovation, experts warn of potential risks. Rapid expansion of room capacity could lead to overcapacity, especially in highly competitive industries where demand sometimes cannot keep pace with supply. This risk underscores the importance of strategic planning for long-term expansion. Hotel companies must be careful to avoid inefficiencies that could reduce profitability.

A new era for the global hotel industry

The global rankings for 2024 clearly demonstrate how competitive the hotel sector is worldwide. The rise of H World Group into the league of billionaires in revenue is a remarkable trend. It seems that scale and diversification are becoming increasingly important, as can be seen with Jin Jiang, Hilton, and, of course, Marriott. The quest for market penetration continues unabated. Hotel groups are increasingly looking to emerging markets and investing there. The real challenge now is to combine quality and sustainability with the ever-changing demands of today's travelers. This competition is unlikely to slow down, and the global hotel industry faces exciting times ahead, at least until 2025.

The Hotel Group Ranking 2025

Source: MKG Consulting