That being said, the following five companies are doing something right. These hotel companies are huge, boasting over 3 million rooms in their 26,319 properties worldwide. How can companies control so many properties and rooms? The same way McDonald’s (MCD) controls 35,000 restaurants: franchise agreements. (For more, see: So You Wanna Buy A Franchise?)
Choice Hotels International (CHH) has the lowest revenue of the properties examined; however, with brands like Comfort Inn, Quality Inn and EconoLodge, the company isn’t pursuing a luxury, full-service business model. In Q1, the company had revenues of $175 million and earnings per share of $0.38. It’s RevPAR (revenue per average room) was a tiny $41.57 and was likely caused by the brands' low occupancy rates.
While there are many other hotel companies which are larger in terms of revenue or profit, Choice Hotels boasts over 5,000 hotels in its portfolio making it the second largest company on this list by number of properties.