Barclays' Examination of Global Hotel Development
Skift Take
Barclays analysts weighed in with their views on the major U.S.-based hotel groups.
Barclays issued a report on the current state of global hotel development. They see the industry focus continuing to converge on the middle-tier chain scales with higher-end players migrating down to increase exposure to a globally expanding middle class while lower-tier players move upstream toward higher FeePAR rooms, driving more competition for middle chain scale deals, particularly conversions, and in turn driving higher use of key money. Barclays said Hilton remains best in class while they feel Choice Hotels’ growth continues to be most challenged, losing a significant share of the U.S. midscale market over the past two years. Barclays believes both Marriott and Hyatt have been weighed down by their higher-end brand mixes, where a tight financing environment has had the most impact. For HLT and MAR, conversions in 2024 comprised 45%-50% of NUG, up from 20%-25% in 2019. CHH and Wyndham were at 70%-80% in 2024 for conversions versus two-thirds in 2019.Â
