How Net Unit Growth Ate the Hotel Industry

Skift Take The roughly 200 brands across the big hotel groups make more sense as an answer to a quarterly growth metric than to anything travelers asked for. At 1717 Broadway in Manhattan, one building holds two hotels. The lower floors are a Courtyard by Marriott and the upper floors are a Residence Inn by Marriott. When it opened in late 2013, it was touted as the tallest dedicated hotel building in North America. Marriott's then-CEO Arne Sorenson said they are "two distinct products that appeal to two different kinds of stays." Both hotels are sold through the same Marriott app and the same loyalty program. The pattern repeats across Midtown: multiple Courtyards, a Fairfield, a SpringHill Suites, more Residence Inns, three Moxys, along with the Westin, the Sheraton, the W, an Aloft, an Element, and a Renaissance. All belong to one company. Accor has more than 45 brands. Hyatt lists 36, Marriott more than 30, Hilton 28, Wyndham 25, IHG 21, and Choice 22. Together the seven large global groups carry roughly 200 brands. Few people inside or outside the industry can name them all. Why do these companies have