In many ways, 2011 has been a quiet year in the hotel industry. With most owners, operators and brand companies focusing on maintaining sales volumes and protecting margins, there was little time and resources for significant product initiatives, new brand development or mergers and acquisitions among chains, management companies or big ownership groups.

Former IHG CEO Andy Cosslett

Despite the relatively light volume of news this year, 2011 has produced a number of major stories. Yesterday we looked at the 10^th through the sixth biggest stories of the year, and today we feature the five biggest:

5. Changes at the Top of IHG. Andy Cosslett’s announcement in March that he was stepping down as CEO of InterContinental Hotels Group wasn’t shocking, but it wasn’t exactly expected either. The affable exec was only 55, but he had already led the company for six years and directed it through the massive and successful relaunch of the iconic Holiday Inn brand. His successor was an easy choice: CFO and IHG veteran Richard Solomons stepped right in and the company hasn’t missed a beat.

The executive shuffle wasn’t limited to the UK offices: Jim Abrahamson, president of IHG’s Americas division, announced he too would be leaving in June to head up Interstate Hotels & Resorts. Another IHG vet slid into the top spot in the Atlanta office as Kirk Kinsell returned home after leading IHG’s EMEA division.

Chatham Lodging Trust CEO Jeffrey Fisher

4. REITs Dominate Transaction Market Early, Then Fade as Stock Prices Tumble. Maybe no better example of this story line was the on-again-off-again-on-again purchase of the bankrupt Innkeepers USA portfolio of 64 hotels by Cerberus Capital Management and Chatham Lodging Trust. In May, the joint venture won the bankruptcy auction with a bid of $1.13 billion and in July beaming Chatham CEO Jeffrey Fisher talked about what a great buy it was.

How quickly things can change. In August, after a tumultuous couple of weeks on Wall Street after the debt-ceiling debate, Cerberus and Chatham bailed on the deal. In October after some legal wrangling, the deal was consummated, this time for good, but for just $1.02 billion.

The transaction mirrored industry wide activity almost perfectly. In the first half of the year, REITs were the major player with many big-ticket buys. Through August, REITs had spent more than $4 billion on hotel investments, almost half of all lodging transactions, but as their share prices diminished, those players were forced to the sidelines. In stepped private equity investors and after a slow period, transaction activity has returned to a healthy level. The year should close with volume up approximately 20% over 2010.

Edition brand leader Tim Miller

3.Owners Oust Marriott From Waikiki Edition and the Still Ongoing Legal Battle. The owners of the Waikiki Edition served more than notice they weren’t pleased with Marriott International and Ian Schrager when they filed suit against both in late May over the new hotel’s poor performance. In August, the owners seized control of the property and installed a new operator. Days layer, a judge ordered Marriott to be reinstalled as the operator, but then the owners filed for bankruptcy and Marriott backed off fighting for control of the property. Got it?

The legal wrangling continues to this day: Marriott earlier this month filed suit against new operator Aqua Hotels over the hostile takeover of the now Modern Honolulu.

Despite the slow start and wave of unfortunate publicity, Marriott has stood firm behind the Edition brand and announced plans to relaunch it at the Lifestyle/Boutique Hotel Development Conference earlier this year.

2. Despite an Up and Down Economy, Lodging Keeps Climbing. Despite repeated questions about consumer confidence, political gridlock and continued blows to the economy (unemployment, the debt-ceiling debate, the European sovereign debt crisis, to name just a few), the hotel industry has continued to grow at a faster pace than many expected. According to STR, occupancy, average daily rate and revenue per available room have all increased in year over year comparisons every month since March of 2010 for the Americas region.

Certainly, those comparisons are buoyed by the previous years’ poor results (especially in 2009), but positive growth is positive growth, and it’s something many other industries and facets of the economy have not seen. To date this year, through November, occupancy is at 61.4% (vs. 58.9% last year), ADR is at $104.33 (vs. $100.41) and RevPAR is at $64.03 (vs. $59.11).

There are still questions and concerns on the real estate side of the industry, largely related to the availability of credit and looming CMBS maturities and oncoming distress, but fundamentals and sentiment remain positive on the operating side of the industry.

Arne Sorenson follows Bill Marriott.

1. Bill Marriott Announces He’ll Step Down as CEO. Just about everyone knew Arne Sorenson would be Bill Marriott’s successor as CEO of Marriott International, and although he was still going strong at 79 years old, it wasn’t a shock Mr. Marriott decided to hand over the reins to the massive lodging company he built. Still, the news was huge. Anytime a legend leaves the game he helped create it is, and that’s exactly what Mr. Marriott did for the lodging industry.

Nearly 60 years ago, Mr. Marriott led the company founded by his father into the lodging business and away from foodservice. Since, he has helped define what a hotel is and should be as Marriott International has grown to more than a dozen brands and almost 3,700 properties in 72 countries.

Mr. Marriott will remain chairman of the company’s board of directors with the new title executive chairman when Sorenson steps into the CEO role on March 31.