Hilton’s market share in the domestic and international market

Teresa Cederholm - Author

Oct. 3 2014, Updated 1:20 p.m. ET

Global market share

The global hotel industry is fragmented. It has a number of small and medium-sized companies. There’s no single company in a position to dominate or influence the industry as a whole. In the global hotel industry, no company holds more than 5% of the hotel rooms.

Hilton is a hotel company that’s growing quickly. It has the highest global market share by room supply of ~5%—this really isn’t much. Hilton’s operations are concentrated in the U.S. However, it has started to grow its presence in the international market. It has a higher market share of ~9% in the U.S. It has a relatively small share of ~3% in other regions in the Middle East and Africa, 1% in Europe, and ~1% in the Asia Pacific region.

Leading position in the U.S.

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In the U.S., Hilton is one of the top ten companies in the U.S. This includes hotel companies that represent ~58% of the market share by the number of rooms. Hilton (HLT) and Marriott (MAR) have the highest market share of ~10% each. They’re followed by Wyndham’s (WYN) ~9%, Choice Hotel’s (or CHH) and International Hotels Group’s (or IHT) ~8% each, and Best Western Company and Starwood’s (HOT) ~3% each. G6 Hospitality, Hyatt (H), and LQ Management LLC each have a ~2% market share.

Hilton’s stock is also part of more than 20 exchange-traded funds (or ETFs). The PowerShares Dynamic Leisure and Entertainment Portfolio (or PEJ) is an ETF with ~85% invested in the Hotels and Lodging sector. It holds ~5% in Hilton shares.

Future capacity growth

Hilton’s growth plans are measured by the number of rooms under construction. Its growth plans rank first in the industry in all its markets—domestic and international. Its global market share of rooms under construction is 17.9%. This is almost four times higher than its current market share of 4.5%. By adding capacity, Hilton will be prepared for the growing demand for hotel accommodation. Future forecasts in the travel and tourism industry look positive.


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