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The International Hotel Industry - December 2015

The International Hotel Industry - December 2015

“The Chinese are to account for an increasing portion of both the supply and the demand side of the worldwide hotel industry. Indeed, Jin Jiang’s takeover of Louvre Hotels Group and just recently of Plateno Hotel Group has created one of the biggest hotel groups in the world.”

- Jessica Kelly, Senior Tourism Analyst

This report looks at the following areas:

What issues are currently impacting the worldwide hotel sector?
What are the latest developments in the area of M&A for the hotel sector and who are the main investors?
What new hotel brands have been launched recently?
What are the key trends and who are the main players in hotel distribution?
Which are the leading hotel groups and what are the strengths, weaknesses, opportunities and threats for each one?
Which are the leading hotel groups by major country market?


INTRODUCTION
KEY FINDINGS
DATA SOURCES
ABBREVIATIONS
ISSUES IN THE MARKET
SHARING ECONOMY – ACCOMMODATION-RENTAL WEBSITES
DISTRIBUTION
NEW ‘LIFESTYLE’ HOTEL BRANDS
FREQUENT-GUEST SCHEMES – STILL RELEVANT?
IMPLICATIONS OF NLRB RULING ON HOTEL STAFFING
SECOND-TIER MANAGEMENT COMPANIES
GLOBAL SUMMARY
DEMOGRAPHIC TREND
Immigration wild card
Japan the odd one out
Figure 1: Worldwide population distribution by age cohort, 1980-2050
Seniors should be targeted by hotels
ECONOMY
Figure 2: World Economic Outlook projections, update, October 2015
INTEREST RATES
Figure 3: Forecast for short-term interest rates (3-month Libor) and 10-year government bonds in 3
months and in 12 months (in %), as of 29/09/2015
EXCHANGE RATES
Figure 4: Currency rate forecast, 30 September 2015
OUTLOOK FOR SPENDING ON TRAVEL AND TOURISM
Figure 5: Spending* on travel & tourism worldwide, 2014 & 2025
Africa
Figure 6: Spending* on travel & tourism in Africa, 2014 & 2025
Americas
Figure 7: Spending* on travel & tourism in Americas, 2014 & 2025
Asia Pacific
Figure 8: Spending* on travel & tourism in Asia Pacific, 2014 & 2025
Europe
Figure 9: Spending* on travel & tourism in Europe, 2014 & 2025
Middle East
Figure 10: Spending* on travel & tourism in the Middle East, 2014 & 2025
LEADING HOTEL CHAINS
Figure 11: The 10 leading hotel groups worldwide, ranked by branded rooms, 2013-14
TOP 20 HOTEL BRANDS
Figure 12: The 20 leading hotel brands worldwide, ranked by branded rooms, 2013-14
LEADING HOTEL MANAGEMENT COMPANIES
Figure 13: Leading hotel management companies worldwide, 2015
LEADING HOTEL FRANCHISORS
Figure 14: Leading hotel franchisors worldwide, 2015
LEADING CONSORTIA
Consortia marking time
Figure 15: Top hotel consortia worldwide, 2013 & 2014
GEOGRAPHICAL PRESENCE
Figure 16: Top 10 hotel groups for geographical presence, 2015
BRAND PENETRATION BY MAJOR REGION
Figure 17: Penetration of branded hotels* by region, 2014
BRAND PENETRATION BY HOTEL GRADE
Figure 18: Penetration of branded rooms* by grade worldwide, 2014
BRAND PENETRATION BY TYPE OF LOCATION
Figure 19: Penetration of branded rooms* by type of location, 2014
REVIEW OF HOTEL PERFORMANCE WORLDWIDE
Region, major country and city
Figure 20: Hotel performance in US$ by major world region & city YTD end September 2014 & 2015
A brighter picture in Euros
Figure 21: Hotel performance in Euros by major world region & city YTD end September 2014 & 2015
REVIEW OF LEADING HOTEL MARKETS
AUSTRALIA
Volume
Figure 22: Tourist accommodation establishments* in Australia, 2009-18
Segmentation
Figure 23: Australia – Travel Accommodation: Market segmentation by volume (number of hotels),
2006-13
Market shares
Figure 24: Company market share by volume (number of hotels), 2012-13
Recent developments
BRAZIL
Volume
Figure 25: Tourist accommodation establishments* in Brazil, 2010-19
Segmentation
Figure 26: Brazil – Travel Accommodation: Market segmentation by volume (number of hotels), 2011-
14
Market shares
Figure 27: Company market share by number of hotels, 2013-14
Recent developments
Hotel performance to pick up in 2016
CANADA
Volume
Figure 28: Tourist accommodation establishments* in Canada, 2009-18
Segmentation
Figure 29: Canada’s travel accommodation – market segmentation by volume (number of properties ),
2010-13
Market shares
Figure 30: Figure: Company market share by number of hotels, 2009-13
Recent developments
CHINA
Volume
Figure 31: Tourist accommodation establishments* in China , 2009-18
Segmentation
Figure 32: China’s travel accommodation – market segmentation by volume (number of properties ),
2011-13
Market shares
Figure 33: Company market share by number of hotels, 2012-13
Recent developments
COLOMBIA
Volume
Figure 34: Tourist accommodation establishments* in Colombia, 2009-18
Segmentation
Figure 35: Colombia’s travel accommodation – market segmentation by volume (number of properties),
2010-13
Market shares
Figure 36: Company market share by number of hotels, 2011-13
Recent developments
FRANCE
Volume
Figure 37: Tourist accommodation establishments* in France, 2009-18
Segmentation
Figure 38: France’s travel accommodation – market segmentation by volume (number of properties ),
2006-13
Market shares
Figure 39: Company market share by number of hotels, 2009-13
Recent developments
GERMANY
Volume
Figure 40: Tourist accommodation establishments* in Germany, 2010-19
Segmentation
Figure 41: Germany’s travel accommodation – market segmentation by volume (number of properties),
2007-14
Market shares
Figure 42: Germany’s travel accommodation – company market share by volume (number of hotels),
2010-14
Recent developments
INDIA
Volume
Figure 43: Tourist accommodation establishments* in India, 2009-18
Segmentation
Figure 44: India’s travel accommodation – market segmentation by volume (number of hotels), 2007-13
Market shares
Figure 45: India’s travel accommodation – company market share by volume (number of hotels), 2011-
13
Recent developments
Value Inn coming to India
INDONESIA
Volume
Figure 46: Tourist accommodation establishments* in Indonesia , 2009-18
Segmentation
Figure 47: Indonesia’s travel accommodation – market segmentation by volume, 2007-13
Market shares
Figure 48: Indonesia’s travel accommodation – company market share by volume (number of hotels),
2011-13
Recent developments
ITALY
Volume
Figure 49: Tourist accommodation establishments* in Italy, 2010-19
Segmentation
Figure 50: Italy’s travel accommodation – market segmentation by volume, 2008-14
Market shares
Figure 51: Italy’s travel accommodation – company market share by volume (number of hotels), 2010-
14
Recent developments
A difficult market to penetrate
Three types of hotels
Figure 52: JSH Hotels & Resorts’ portfolio, 2014
Leases still common
Financial environment improving
JAPAN
Volume
Figure 53: Tourist accommodation establishments* in Japan, 2009-18
Segmentation
Figure 54: Japan’s travel accommodation – market segmentation by volume, 2007-13
Market shares
Figure 55: Japan’s travel accommodation – company market share by volume (number of hotels),
2011-13
Recent developments
Starwood Hotels & Resorts
Hoshino Resort Co.
Milial Resort Hotels
Vegas in Japan?
MEXICO
Volume
Figure 56: Tourist accommodation establishments* in Mexico, 2010-19
Segmentation
Figure 57: Mexico’s travel accommodation – market segmentation by volume, 2007-14
Market shares
Hoteles City Express
Figure 58: Description of Hoteles City Express’ brands, 2015
Figure 59: Mexico’s travel accommodation – company market share by volume (number of hotels),
2013-14
Recent developments
Figure 60: Breakdown of Mexico’s pipeline by chain scale, 2015
RUSSIA
Volume
Figure 61: Tourist accommodation establishments* in Russia , 2009-18
Segmentation
Figure 62: Russia’s travel accommodation – market segmentation by volume, 2007-13
Market shares
Figure 63: AMAKS’ hotel portfolio, 2015
Figure 64: Russia’s travel accommodation – company market share by volume (number of hotels),
2009-13
Recent developments
A third Sheraton for Russia
SOUTH AFRICA
Volume
Figure 65: Tourist accommodation establishments* in South Africa , 2009-18
Segmentation
Figure 66: South Africa’s travel accommodation – market segmentation by volume, 2009-13
Market shares
Figure 67: South Africa’s travel accommodation – company market share by volume (number of
hotels), 2009-13
Recent developments
Recent transactions
Marriott’s new developments
SOUTH KOREA
Volume
Figure 68: Tourist accommodation establishments* in South Korea , 2009-18
Segmentation
Figure 69: South Korea’s travel accommodation – market segmentation by volume (number of hotels),
2008-13
Market shares
Figure 70: South Korea’s travel accommodation – company market share by volume (number of
hotels), 2011-13
Recent developments
Wyndham’s big push into South Korea
SPAIN
Volume
Figure 71: Tourist accommodation establishments* in Spain, 2010-19
Segmentation
Figure 72: Spain’s travel accommodation – market segmentation by volume (number of hotels), 2007-
14
Market shares
Figure 73: Spain’s travel accommodation – company market share by volume (number of hotels), 2011-
13
Recent developments
TURKEY
Volume
Figure 74: Tourist accommodation establishments* in turkey, 2009-18
Segmentation
Figure 75: Turkey’s travel accommodation – market segmentation by volume, 2009-13
Market shares
Figure 76: Turkey’s travel accommodation – company market share by volume (number of hotels),
2010-13
Recent developments
Turkey’s hotel pipeline reaches all-time high
UK
Volume
Figure 77: Tourist accommodation establishments* in UK , 2009-18
Segmentation
Figure 78: UK’s travel accommodation – market segmentation by volume, 2010-13
Market shares
Figure 79: UK’s travel accommodation – company market share by volume (number of hotels), 2011-13
Recent developments
US
Volume
Figure 80: Tourist accommodation establishments* in the US , 2009-18
Segmentation
Figure 81: US’ travel accommodation – market segmentation by volume (number of hotels), 2008-13
Market shares
Figure 82: US’ travel accommodation – company market share in % of total hotels, 2009-13
Recent developments
Figure 83: Top-10 markets by room under construction, September 2015
Supply risk on the horizon?
VIETNAM
Volume
Figure 84: Tourist accommodation establishments* in Vietnam , 2009-18
Segmentation
Figure 85: Vietnam’s travel accommodation – market segmentation by volume, 2010-13
Market shares
Figure 86: Vietnam’s travel accommodation – company market share by volume (number of hotels),
2011-13
Recent developments
SHARING ECONOMY – ACCOMMODATION-RENTAL WEBSITES
IMPACT OF THE SHARING ECONOMY
Hoteliers move into the sharing economy
Onefinestay offers some hotel services
Loyalty programme linkages
Wyndham and IHG
Room Mate shows the way
CONCLUSION
DISTRIBUTION CHANNELS
Figure 87: Hotel booking channel breakdown in the US, 2014
Figure 88: Online share of hotel gross bookings by region, 2014
DIRECT BOOKINGS
TripAdvisor and Google now offer direct booking
How instant booking works
Instant booking partners
Customers get loyalty points
CPA more predictable that CPC
Booking.com joins instant booking
Biting the hand that feeds them?
Booking on the defensive
‘Book on Google’
Direct Hotel Booking on Trivago
HOTEL CHAINS STRIVE FOR DIRECT BOOKINGS
IHG Rewards club lowest price guarantee
Marriott’s direct-booking campaign raises hackles
Travel intermediaries react
Low customer awareness
Commitment to agents reiterated
Accor’s open booking platform
Accor to charge 14%
A recruitment platform
Marketing costs underestimated?
‘Only On’
NEW ‘LIFESTYLE’ HOTEL BRANDS – SOME TARGETING MILLENNIALS
AC HOTELS BY MARRIOTT
Concept
Recent developments and outlook
CANOPY BY HILTON
Concept
Recent developments and outlook
CORDIS HOTELS AND RESORTS
Concept
Recent developments and outlook
China growth
Another brand
CURIO BY HILTON
Concept
Branding on the cheap
Caribbean
Europe
North America
South America
Recent developments and outlook
London
Paris
Dubai
Istanbul
Mobile, Alabama
Asheville, North Carolina
Dominica, Caribbean
EVEN HOTELS
Concept
Recent developments and outlook
EVEN Hotel Norwalk
EVEN Hotel Rockville, Maryland
Pipeline
GRADUATE HOTELS
Concept
Recent developments and outlook
Figure 89: Graduate hotels pipeline, October 2015
HYATT CENTRIC
Concept
Recent developments and outlook
HOTEL JEN
Concept
Recent developments
Rebranding Traders’ properties
Figure 90: Hotel Jen portfolio, October 2015
KARAS
The KARAS experience
Recent developments and outlook
MOXY
Concept
Figure 91: Marriott's European pipeline of Moxy-branded hotel, 2015
Ikea is development partner
OE COLLECTION
Concept
OE’s brand positioning vis-à-vis independent hotels
OE’s adaptability
Differentiating the OE brand in terms of the guest experience
Profile of the OE guest
Recent developments and outlook
PROPER HOTELS
Concept
Creativity Is the new luxury
Recent developments and outlook
Website
QUORVUS COLLECTION
Concept
RADISSON RED
Concept
Development specifications
Figure 92: Building specification for Radisson RED, 2015
Radisson RED’s first property will be in China
Launched in South Africa
A Glasgow location
First Radisson RED Hotels in the Americas
Entering Indonesia
TRIBUTE PORTFOLIO
Concept
Recent developments and outlook
VIB
Concept
Low fees
Figure 93: Annual fee comparison as a % of total room revenue (10-year cost), 2015
Prototype specifications
Figure 94: Vib prototype details, 2015
Recent developments and outlook
The first Vib’s signed
Vīb Miami
Vīb Chicago
Five new Vib hotels under development in the US
VIRGIN HOTELS
Concept
Recent developments
FREQUENT-GUEST SCHEMES – STILL RELEVANT?
MILLENNIALS DEMAND INSTANT REWARDS
OTA LOYALTY PROGRAMMES
Starwood not affected by OTA loyalty programmes
Focus on technology
IMPLICATIONS OF NLRB RULING ON HOTEL STAFFING
CREATING UNCERTAINTY
OUTLOOK
SECOND-TIER MANAGEMENT COMPANIES
Figure 95: Top-10 second-tier hotel management companies, 31 December 2014
INTERSTATE HOTELS & RESORTS
North American portfolio
Figure 96: North American portfolio by major hotel group, 2015
European portfolio
Figure 97: Interstate’s European portfolio by major hotel group, 2015
Asian portfolio
Interstate-managed hotels by country
Figure 98: Interstate’s portfolio by country & brand, 2015
AIMBRIDGE HOSPITALITY
Figure 99: Aimbridge Hospitality’s portfolio by franchise brand, 2014
CRESCENT HOTELS & RESORTS
Figure 100: Crescent Hotels & Resorts’ portfolio by franchise brand, 2014
WHITE LODGING SERVICES CORPORATION
Figure 101: White Lodging Services' portfolio by franchise brand, 2014
Figure 102: White Lodging's active pipeline, September 2015
PILLAR HOTELS & RESORTS
Figure 103: Pillar Hotels & Resorts' hotel portfolio, 2015
PYRAMID HOTEL GROUP
Figure 104: Pyramid Hotel Group’s portfolio by location & chain, 2015
TPG HOSPITALITY
REMINGTON
Figure 105: Remington’s hotel portfolio by brand, 2015
HHM
GF MANAGEMENT
TOP TEN HOTEL GROUPS
Figure 106: Top-10 hotel groups ranked by growth rate in rooms, 2007-15
Figure 107: Top 10 leading hotel groups worldwide, ranked by branded rooms, 2013-14
HILTON WORLDWIDE
Figure 108: Hilton share price, December 2013-end October 2015
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
BRANDS
Waldorf Astoria Hotels & Resorts
Conrad Hotels & Resorts
Canopy by Hilton
Hilton Hotels & Resorts
Curio – A Collection by Hilton
DoubleTree by Hilton
Embassy Suites Hotels
Hilton Garden Inn
Hampton Hotels
Homewood Suites by Hilton
Home2 Suites by Hilton
Hilton Grand Vacations
RECENT DEVELOPMENTS
Figure 109: Hilton’s market share of existing rooms & pipeline, 2015
SALE OF THE WALDORF ASTORIA
MARRIOTT INTERNATIONAL
Figure 110: Marriott share price 3 years, to end October 2015
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
BRANDS
Ritz-Carlton
Bulgari Hotels & Resorts
EDITION
JW Marriott
Marriott Hotels
Autograph Collection Hotels
Renaissance Hotels
Marriott Executive Apartments
Gaylord Hotels
AC Hotels by Marriott
Courtyard
SpringHill Suites
Fairfield Inn & Suites
Protea Hotels
Moxy Hotels
RECENT DEVELOPMENTS
Marriott agrees to acquire Starwood Hotels & Resorts
60 new hotels in the Caribbean and Latin America by 2018
IHG
Figure 111: IHG share price 3 years to end October 2015
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
BRANDS
InterContinental Hotels & Resorts
HOTELS IN THE PIPELINE
HUALUXE Hotels and Resorts
Crowne Plaza Hotels & Resorts
Hotel Indigo
Holiday Inn
Holiday Inn Express
Staybridge Suites
Candlewood Suites
EVEN Hotels
Kimpton Hotels & Restaurants
RECENT DEVELOPMENTS
WYNDHAM HOTEL GROUP
Figure 112: Wyndham share price 3 years to end October 2015
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
BRANDS
Figure 113: Wyndham’s hotel portfolio by brand, segment & region, 31 December 2014
RECENT DEVELOPMENTS
Wyndham acquired Dolce Hotels and Resorts
Wyndham Joins TripAdvisor’s instant booking
CHOICE HOTELS INTERNATIONAL
Figure 114: Choice share price, 3 years to end October 2015
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
BRANDS
Cambria Hotels and Suites
Ascend
Comfort Inn
Comfort Suites
Clarion
Quality
Sleep Inn
MainStay Suites
Suburban Extended Stay Hotel
Econo Lodge
Rodeway Inn
RECENT DEVELOPMENTS
Figure 115: Choice’s worldwide system size statistics as of & for the year ended 31 December 2014
ACCORHOTELS
Figure 116: Accor share price 3 years to end October 2015
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
BRANDS
Sofitel
Pullman
MGallery
Grand Mercure
Grand Mercure
Mei Jue and Maha Cipta
The Sebel
Novotel
Suite Novotel
Mercure
Mama Shelter
Adagio Aparthotels
ibis
ibis Styles
ibis budget
hotelF1
RECENT DEVELOPMENTS
HotelInvest buys 43 hotels
AccorHotels is acquiring FRHI
PLATENO HOTELS GROUP
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
BRANDS
7 Days Inn
Portofino Hotels
Lavande
Xana Hotelle
Daojia Hotel
Hotel12
ZMAXHOTELS
Pipeline
RECENT DEVELOPMENTS
Plateno has the largest loyalty scheme
Hampton development agreement
STARWOOD HOTELS & RESORTS
Figure 117: Starwood share price 3 years to end October 2015
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
BRANDS
Figure 118: Starwood’s portfolio by brand, 31 December 2014
St. Regis
The Luxury Collection
W
Westin
Le Méridien
Sheraton
Tribute Portfolio
Four Points
Aloft
Element
RECENT DEVELOPMENTS
Starwood sells timeshare
Yet another brand?
Design Hotels comes on board
JIN JIANG INTERNATIONAL HOTEL GROUP CO.
Figure 119: Jin Jiang Hotels’ share price, (in HK$), 2011-end October 2015
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
BRANDS
Jin Jiang brands
Louvre brands
Figure 120: Louvre Hotel Group’s portfolio by brand, 2015
RECENT DEVELOPMENTS
Louvre Hotels Group purchase
Plateno Hotels Group acquired
BEST WESTERN HOTELS & RESORTS
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
BRANDS
Best Western
Best Western Plus
Best Western Premier
Best Western Plus Executive Residency
BW Premier Collection
Vib
RECENT DEVELOPMENTS
GLo
Digital initiatives
INDUSTRY INSIGHT
WHAT NEXT?
MORE CONSOLIDATION
ECONOMIES OF SCALE A KEY DRIVER
LOW INTEREST RATES TO CONTINUE
FRHI HOTELS & RESORTS THE NEXT TO GO
INCREASING CHINESE DOMINANCE
Vertical integration of the Chinese outbound market
OTAS TO BE SQUEEZED
Spread of chains reduces reliance on OTAs
INDEX TO TRAVEL & TOURISM ANALYST
Index grouped by geographic area
INDEX TO TTI DESTINATION REPORTS
Country reports
SPECIAL REPORTS INDEX
2003
2004
2005
2006

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