Search
 

More Lodging M&A on the Horizon

The growing power of the largest US hotel brands is putting competitive pressure on smaller operators to add scale and brand diversity, says Fitch Ratings.

By Paul Bubny | paulbubny | Updated on August 29, 2017

Exterior of hotel A Hyatt Regency hotel in Cambridge, MA. The operator’s high ADR makes it a tempting M&A candidate.

NEW YORK CITY—More consolidation within the lodging sector is on the horizon, Fitch Ratings said Tuesday. The ratings agency cited the growing power of the largest US hotel brands, namely Hilton Worldwide and the post-merger Marriott International, which is putting competitive pressure on smaller operators to add scale and brand diversity.

Fitch says Marriott and Hilton are “well ahead of their peers” in terms of system size and ADR, and are taking development share away from smaller brand operators in the US. Furthermore, says Fitch, scale-related competitive advantages—including lower purchasing and rooms distribution costs and larger customer loyalty rewards programs—attract owners and franchisees.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2025 ALM Global, LLC. All Rights Reserved.