Hotel and Resort Franchises Poised to Make a Comeback in 2021
After a pandemic-related revenue decline of more than 50 percent in 2020, the hotel and resort franchise industry is finally seeing some light at the end of the tunnel. As COVID-19 vaccines become more readily available, travel restrictions will decline and the safety of travel will improve. These factors, combined with a global cabin fever, skipped vacations and family visits, declines in travel expenses due to low demand and unused paid time off are leading a number of financial websites such as TheMotleyFool to predict a hotel and resort franchise boom at some point in 2021.
We may already be seeing part of that boom. According to Zacks’ Investment Research, analysts are expecting Marriott International franchises will report full-year sales of $10.81 billion for 2020, with a range of $10.52 billion to $11.21 billion. For 2021, analysts expect that the company will post sales of $14.36 billion, with a range of $10.69 billion to $17.31 billion. If those numbers hold true, that's a projected growth of 24.72 percent.
So the question becomes, when people do travel again, where will they go?
In October 2020, Condé Nast Traveler announced the results of its annual Readers’ Choice Awards, recognizing 14 unique properties within Hilton Hotels & Resorts franchises luxury portfolio. Conrad Hotels & Resorts franchises earned three property awards for best-in-class hotels around the globe while Waldorf Astoria Hotels & Resorts franchises earned 11 property awards. The Condé Nast Traveler Readers’ Choice Awards are the longest-running at 33 years and most prestigious recognition of quality in the franchise travel industry. More than 715,000 Condé Nast Traveler readers submitted responses rating their travel experiences at said hotel franchises.
Here are some other hotel and resort franchises to watch closely in 2021: