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How do hotel companies make money?

The biggest hotel companies own very few hotels. Together, Marriott and Hilton took in $38.2 billion in their latest years and kept $4.1 billion in profit, $10.62 of every $100.

From each company's latest Form 10-K. Page updated November 8, 2026.

The biggest hotel companies own very few hotels. They manage or franchise hotels owned by investors and charge fees on room revenue, plus loyalty and credit card money.

Company	Revenue	Net profit	Kept per $100	Biggest line
Marriott	$26.2B	$2.6B	$9.93	Pass-through costs
Hilton	$12.0B	$1.5B	$12.10	Pass-through costs

Where each company's money comes from.

Marriott

Pass-through costs$19.2B73% of total

Fees$5.3B20% of total

Owned and leased hotels$1.7B6% of total

How Marriott makes money

Hilton

Pass-through costs$7.1B59% of total

Franchise and license fees$2.8B23% of total

Owned and leased hotels$1.2B10% of total

Management fees$376M3% of total

Incentive fees$313M3% of total

How Hilton makes money

Sources: Marriott Form 10-K, Hilton Form 10-K on SEC EDGAR.

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