Staying at a luxury hotel is the stuff of daydreams for most people. The few who do regularly stay, or even live, in upscale hotels know that there is no substitute for a life where anything you desire is just a phone call away. Luxury hotels treat their guests like royalty, with many brands going so far as to institute rules forbidding employees from uttering the word “no.” From photo-identification systems that allow employees to recognize repeat guests instantly to gourmet feasts in bed, luxury hotels are as close as many people get to heaven on earth.
Room rates in luxury hotels are limitless. A five-star hotel room in New York starts at around $400 per night, and many rooms are more than $1,200 per night. But the high room costs associated with style, extravagance, and royal treatment result in high profits for luxury hotels—and speaking of profitability, here are the three most profitable luxury hotel companies in the world.
Key Takeaways
- Mariott International (MAR) is the top-earning hotel/resort company, with revenues of more than $23 billion.
- MGM Resorts (MGM) is the second highest-earning hotel/resort company, with revenues of more than $16 billion.
- Las Vegas Sands (LSV) finishes off the list of the top three highest-earning hotels/resorts, with revenues of more than $10 billion.
Marriott International (MAR)
- Revenue (TTM): $23.7 billion
- Net Income (TTM): $3.1 Billion
- Market Cap: $81.3 Billion
- 1-Year Trailing Total Return: 41.8%
- Exchange: Nasdaq
Marriott International Inc. (MAR) (Ritz-Carlton, Marriott, Delta) was founded in 1927 as a root beer stand in Washington, D.C., by J. Willard Marriott and Alice Sheets Marriott. The couple rapidly expanded their business to include delivering food to airlines in the 1930s and lodging in the 1950s. The company grew through the following years, acquiring smaller hotels until it eventually bought Starwood Hotels & Resorts in 2016 to become the world’s largest hotel company.
Marriot International owns the following luxury brands:
- Edition: 20+ customized hotels designed for “affluent” guests
- JW Marriot: A brand that has nearly 125 hotels in 40 countries
- St. Regis Hotels and Resorts: A well-known global luxury brand
- The Luxury Collection: A collection of hundreds of luxury hotels around the world
- The Ritz-Carlton: Another well-known luxury brand of hotels, including the Ritz-Carlton Yacht Collection.
- W Hotels: Close to 70 hotels worldwide with a signature “Whatever/Wherever” concierge service (as long as it’s legal).
MGM Resorts International (MGM)
- Revenue (TTM): $16.2 billion
- Net Income (TTM): $1.1 Billion
- Market Cap: $10.9 Billion
- 1-Year Trailing Total Return: -7.1%
- Exchange: New York Stock Exchange
MGM Resorts International claims humble beginnings, founded by eighth-grade drop-out Kirk Kerkorian in the late 1960s as MGM Grand. MGM Grand, Inc grew through the last decade of the twentieth century and, in 2010, was renamed MGM Resorts International. The company states its mission it to “…entertain the human race.”
The company also offers sports betting in the U.S. and throughout Europe, along with online gambling and gaming.
Las Vegas Sands (LVS)
- Revenue (TTM): $10.4 billion
- Net Income (TTM): $1.2 Billion
- Market Cap: $39.1 Billion
- 1-Year Trailing Total Return: 20.2%
- Exchange: New York Stock Exchange
A young company in the luxury hotel industry, LVS was founded in 1989 with the purchase of the Sands Hotel in Las Vegas. Founder Sheldon Adelson then built and opened The Venetian Resort in 1999 and began developing and opening Sands hotels worldwide. As of December 2024, the company has five resorts in Macao and one in Singapore, with proposed developments in New York.
What Is the #1 Hotel in the World?
“Best Hotel” is a subjective title, but there are many hotels worthy of it. Trip Advisor publishes its thoughts on the matter annually—in December 2024, Trip Advisor named the Hotel Colline de France in Gramado, Brazil, the best hotel in the world.
What Is the Most Luxurious Hotel Brand?
Luxury is in the eye of the beholder, but Luxury Travel Intelligence, a members-only travel resource for the affluent, has named Mandarin Oriental as the most luxurious hotel brand for 2024.
What Are the 7-Star Hotels in the World?
There are no hotels officially rated at seven stars by entities that rate hotels in the U.S., but some international hotels might promote themselves this way to attract a specific type of customer.
Bottom Line
The top three most profitable luxury hotels offer a vast number of locations worldwide for those seeking entertainment and adventure with a splash of style. If you’re looking for a place to vacation and enjoy some extra pleasures and amenities, these hotels can provide a comfortable and entertaining time away from your normal life.