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The International Hotel Industry - March 2017

Published By :

Mintel

Published Date : Mar 2017

Category :

Hotels & Restaurants

No. of Pages : N/A

There is an increasing blurring of the lines in the lodging sector between hotels and alternative accommodation, such as peer-to-peer rentals, serviced apartments, hostels, etc. AccorHotels has plunged head first into the alternative accommodation space with their 2016 acquisition of onefinestay and their newly launched Jo & Joe brand. Choice Hotels has dipped a toe into alternative accommodation with their holiday-rentals platform and the Spanish hotel group Room Mate has embraced the sharing economy wholeheartedly with its Be Mate offering that provides hotel services in rented apartments. More hotel chains are likely to follow this trend in the coming months and years. At the same time, there is a realisation that product quality and reliability need to be enhanced in the accommodation-rental sector if the likes of Airbnb are going to succeed in broadening their customer base to attract upmarket leisure travellers and corporate managers

Table of Content

INTRODUCTION
Key findings

DATA SOURCES

ABBREVIATIONS

ISSUES IN THE MARKET
Hotel cycle peaking in North America
Hotels confront the sharing economy
Hotel loyalty schemes combat OTAs
Brand proliferation
Chinese brands on the rise
Rising political uncertainty

GLOBAL SUMMARY
Demographic trends
Figure 1: Population of the world & major regions (m), 2015, 2030, 2050 & 2100
The migration factor
Economic, interest-rate and currency outlook
Figure 2: Overview of the World Economic Outlook projections (% change, unless noted otherwise), January 2017 update
Currency outlook
Figure 3: Foreign exchange outlook, 2017
Outlook for spending on travel and tourism
Figure 4: Spending* on travel & tourism worldwide (US$bn), 2015 & 2026
Africa
Figure 5: Spending* on travel & tourism in Africa (US$bn), 2015 & 2026
Americas
Figure 6: Spending* on travel & tourism in Americas (US$bn), 2015 & 2026
Asia Pacific
Figure 7: Spending* on travel & tourism in Asia Pacific (US$bn), 2015 & 2026
Europe
Figure 8: Spending* on travel & tourism in Europe (US$bn), 2015 & 2026
Middle East
Figure 9: Spending* on travel & tourism in the Middle East (US$bn), 2015 & 2026
Impact of higher interest rates on hotel values
Figure 10: Cap rates* vs. 10-year US treasury bond yields**, 1994-2015
Worldwide hotel supply
Figure 11: Estimated worldwide hotel supply, revenue & chain penetration by region, 2016

MAJOR HOTEL MARKETS
Figure 12: Number of hotels in selected country markets, 2014-20
Australia
Segmentation
Figure 13: Australia – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
Market shares
Figure 14: Australia – travel accommodation: hotel group market share by number of hotels, 2012-15
Recent developments
Figure 15: Year-on-year increase in RevPAR*, 2010-year-to-date September 2016
AccorHotels restructures lease portfolio
Brazil
Segmentation
Figure 16: Brazil – travel accommodation: market segmentation by volume (number of establishments*), 2011-15
Market shares
AccorHotels
Atlantica Hotels
Figure 17: Brazil – travel accommodation: hotel group market share by number of hotels, 2014-15
Recent developments
Canada
Segmentation
Figure 18: Brazil – travel accommodation: market segmentation by volume (number of establishments*), 2010-15
Market shares
Figure 19: Canada – travel accommodation: hotel group market share by number of hotels, 2012-15
Recent developments
A boom in hotel deals in Canada indicate another big year
Foreign investment
Major markets
China
Segmentation
Figure 20: China – travel accommodation: market segmentation by volume (number of establishments*), 2012-15
Market shares
Figure 21: China – travel accommodation: hotel group market share by number of hotels, 2012-15
Leading chains in China
Figure 22: Chinese hotel-chain market shares (% of graded hotels), 2015
Recent developments
China’s hotel pipeline continues to decline
Colombia
Segmentation
Figure 23: Colombia – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
Market shares
Figure 24: Colombia – travel accommodation: hotel group market share by number of hotels, 2012-15
Recent developments
A new-build Hilton for Bogota
France
Segmentation
Figure 25: France – travel accommodation: market segmentation by volume (number of establishments*), 2010-15
Market shares
Figure 26: France – hotel group market share ranked by number of hotels, 2012-15
Figure 27: Ranking of integrated hotel chains in France by room capacity, 2016
Recent developments
Germany
Segmentation
Figure 28: Germany – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
Market shares
Figure 29: Germany – travel accommodation: hotel group market share by number of hotels, 2012-15
Recent developments
Hotel investments set another record
Secondary locations in high demand
India
Segmentation
Figure 30: India – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
Market shares
Figure 31: India – travel accommodation: hotel group market share by number of hotels, 2012-15
Recent developments
International brands are taking over
Big expansion plans
Chinese buy into India
Indonesia
Segmentation
Figure 32: Indonesia – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
Market shares
Figure 33: Indonesia – travel accommodation: hotel group market share by number of hotels, 2012-15
Recent developments
Waldorf Astoria Bali
Italy
Segmentation
Figure 34: Italy – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
Market shares
Figure 35: Italy – travel accommodation: hotel group market share by number of hotels, 2011-15
Recent developments
Figure 36: Hotel investment volume in Italy 2011, YTD Q3 2016
Investors come to Italy by default
Becoming more realistic?
No distressed asset bonanza
Milan hotel market
Figure 37: Recent hotel openings & pipeline in Milan, 2017
Rome hotel market
Figure 38: Recent hotel openings & pipeline in Rome, 2017
Japan
Segmentation
Figure 39: Japan – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
Market shares
Figure 40: Japan – travel accommodation: hotel group market share by number of hotels, 2012-15
Recent developments
Figure 41: Trend in occupancy rate, ryokans vs. limited-service hotels, 2011-15
Government support for ryokans
Effort to rebalance incoming tourism
Mexico
Segmentation
Figure 42: Mexico – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
Market shares
Figure 43: Mexico – travel accommodation: hotel group market share by number of hotels, 2014-15
Recent developments
Hilton’s rapid expansion
Nine more added to pipeline
Russia
Segmentation
Figure 44: Russia – travel accommodation: market segmentation by volume (number of hotels*), 2009-15
Market shares
Figure 45: Russia – travel accommodation: hotel group market share by number of hotels, 2012-15
Recent developments
South Africa
Segmentation
Figure 46: South Africa – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
Market shares
Figure 47: South Africa – travel accommodation: hotel group market share by number of hotels, 2014-15
Recent developments
Figure 48: Key performance data for hotels in South Africa, 2012-20
Pipeline and recent openings
South Korea
Figure 49: South Korea’s top 10 inbound source markets, 2015-16
Segmentation
Figure 50: South Korea – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
Market shares
Figure 51: South Korea – travel accommodation: hotel group market share by number of hotels, 2011-15
Recent developments
Spain
Figure 52: Trend in incoming tourist arrivals in Spain, 2007-15
Segmentation
Figure 53: Spain – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
Market shares
Figure 54: Spain – travel accommodation: hotel group market share by number of hotels, 2013-15
Recent developments
Hotel performance on the upswing
Figure 55: Trend in Spanish hotel performance, 2007-15
Major urban markets
Figure 56: Spain’s major urban hotel markets ranked by RevPAR, 2014-15
Barcelona is supply constrained
Pipeline
Figure 57: Barcelona pipeline, September 2016
Madrid is also interesting
Figure 58: Madrid pipeline, September 2016
Other cities
Major resort markets
Figure 59: Spain’s major resort hotel markets ranked by RevPAR, 2014-15
Málaga the ‘new Barcelona’?
Turkey
Segmentation
Figure 60: Turkey – travel accommodation: market segmentation by volume (number of establishments*), 2010-15
Market shares
Figure 61: Turkey – travel accommodation: hotel group market share by number of hotels, 2014-15
Recent developments
UK
Segmentation
Figure 62: UK – travel accommodation: market segmentation by volume (number of establishments*), 2014-15
Market shares
Figure 63: UK – travel accommodation: hotel group market share by number of hotels, 2011-15
Recent developments
Whitbread plans 100,000 more rooms
Figure 64: UK hotel market by segment (% share of rooms), 2010-20
US
Segmentation
Figure 65: US – travel accommodation: market segmentation by number of establishments* (000), 2008-15
Market shares
Figure 66: US – travel accommodation: hotel group market share by number of hotels, 2012-15
Leading hotel chains in the US
Figure 67: Leading hotel groups in the US ranked by number of rooms, June 2015
Recent developments
Weaker growth in international and business travel
US hotel pipeline at December 2016
Figure 68: US pipeline by chain scale segment (number of rooms % change), December 2016 vs. December 2015
Top markets for new hotel openings in 2017
Figure 69: Leading markets for the opening of new rooms & hotels in 2017, December 2016
Vietnam
Segmentation
Figure 70: Vietnam – travel accommodation: market segmentation by volume (number of establishments*), 2011-15
Market shares
Figure 71: Vietnam – travel accommodation: hotel group market share by number of hotels, 2012-15
Recent developments
Bright prospects for hospitality sector but caution is warranted
Dream Hotel Group to enter Vietnam

HOTEL CYCLE PEAKING IN NORTH AMERICA?

HOTELS CONFRONT THE SHARING ECONOMY
Hotel associations react
Enforcement of regulations is difficult
Figure 72: Weekly number of Airbnb listings in Berlin, 2015-16
Room Mate embraces the sharing economy
Only the best are chosen
Location and booking
Hotel services on tap
The way forward?

HOTEL LOYALTY SCHEMES COMBAT OTAS
AccorHotels moves to attract direct bookings
Le Club discounts
IHG’s lowest price guarantee
Figure 73: IHG’s channel revenue contribution (% breakdown), 2015
Figure 74: IHG’s direct online revenue booked (US$bn), 2011-15
IHG Rewards Club exclusive rates
Hilton’s ‘Stop Clicking Around’ campaign
Hilton’s video ad campaign
Hilton claims gains from direct booking
Marriott’s direct booking campaigns
Beyond lower rates …
Hyatt promotes direct booking too …
Choice follows suit …
OTAs should charge less
The OTAs react and threaten ...
OTA business model to evolve?
Direct booking campaigns concern a good portion of industry
Dimming abandoned

BRAND PROLIFERATION
Development considerations a major factor
Will they all succeed?
Impact on hotel owners

CHINESE BRANDS ON THE RISE
Wanda switches to its own brands
Overseas expansion too

RISING POLITICAL UNCERTAINTY
Brexit impact
Figure 75: Sterling down 17% against the US Dollar, 2016
Weak Pound boosts UK hotels
Regions take the lead
Figure 76: UK Hotel performance, provinces vs. London, 2015, 2016 & 2017
Resort hotels booming
And now the downside
Labour to be a problem
Development costs to rise
Brexit impact on foreign hotel markets
Figure 77: Forecast for UK – the change in arrivals in selected destinations, 2017
Exposed cities
Figure 78: UK arrivals in selected city destinations, 2015
Uncertainty under Trump
Less regulation to help the bottom line
Looser banking regulations to spur development
US hotel values already declining
Labour force could be a problem
DACA
NAFTA withdrawal implications
Increased enforcement
Eliminating illegal workers to push up costs
Political risk in Europe overestimated
TOP TEN HOTEL CHAINS WORLDWIDE
Figure 79: Top 10 hotel chains ranked by number of rooms, 2016
Figure 80: Change in the number of branded rooms by top 10 hotel groups in 2015
1.4 million rooms in the pipeline
Leading hotel chains in Europe
Figure 81: European hospitality companies by number of rooms at 1 January 2016*
Leading hotel brands in Europe
Figure 82: European hotel brands by number of rooms at 1 January 2016*

MARRIOTT INTERNATIONAL
SWOT analysis
Brand portfolio
Figure 83: Marriott’s 30 brands by category, 2016
Luxury
St. Regis
Ritz-Carlton
Bulgari Hotels & Resorts

EDITION Hotels
W Hotels
JW Marriott Hotels & Resorts
The Luxury Collection Hotels & Resorts
Upper upscale
Le Meridien Hotels & Resorts
Renaissance Hotels
Westin Hotels & Resorts
Tribute Portfolio
Sheraton Hotels & Resorts
Marriott Hotels
Autograph Collection
Design Hotels
Marriott Executive Apartments
Delta Hotels & Resorts
Upscale
AC Hotels by Marriott
Aloft
Element
Gaylord Hotels
SpringHill Suites
Courtyard by Marriott
Four Points by Sheraton
Residence Inn by Marriott
Midscale
Fairfield Inn & Suites
Moxy Hotels
Protea Hotels by Marriott
TownePlace Suites
Timeshare
Marriott Vacation Club
Grand Residences by Marriott
The Ritz-Carlton Destination Club
Loyalty programme relationship
Managing the brand portfolio
Marriott has a good track record
Accent on Aloft and Element
Recent developments
Integrating loyalty schemes a top priority
Owner issues
Positive aspects for owners
Marriott’s Luxury Brands Group
Growth in Marriott’s luxury portfolio

HILTON
SWOT analysis
Brand portfolio
Figure 84: Hilton’s brand portfolio by share of existing rooms & pipeline, August 2016
Luxury
Waldorf Astoria Hotels & Resorts
Conrad Hotels & Resorts
Upper upscale
Hilton
Curio A Collection by Hilton
Embassy Suites by Hilton
Upscale
Canopy by Hilton
Figure 85: Canopy’s pipeline, January 2017
DoubleTree by Hilton
Hilton Garden Inn
Homewood Suites by Hilton
Midscale/select service
Hampton by Hilton
Home2 Suites by Hilton
Tru by Hilton
Timeshare
Hilton Grand Vacations
Recent developments
Sale of stake to HNA to be finalised soon
REIT and timeshare spun off
Reverse stock split
Park Hotels & Resorts
New brands on the way
Hilton launches another soft brand
Branding on the cheap
Tapestry versus Curio
A meticulously chosen brand name
Tapestry Collection’s targeting an already crowded marketplace
Hilton updates its loyalty programme
Hilton Honors Points & Money slider
Points Pooling
Amazon Shop with Points
Diamond Status Extension
Loyalty is critical

INTERCONTINENTAL HOTELS GROUP (IHG)
SWOT analysis
Brand portfolio
InterContinental
Kimpton
Kimpton arrives in Europe
Hotel Indigo
Even
HUALUXE
Crowne Plaza
Holiday Inn
Holiday Inn Express
Holiday Inn Resort
Holiday Inn Vacations
Staybridge Suites
Candlewood Suites
Recent developments

WYNDHAM HOTEL GROUP
SWOT analysis
Figure 86: Wyndham’s hotel capacity & performance by region, 2015
Brand portfolio
Figure 87: Wyndham's hotel portfolio by chain scale, 2013-15
Figure 88: Wyndham’s hotel capacity by brand & region, 2016
Recent developments
Wyndham gets foothold in Latin America

JIN JIANG
SWOT analysis
Figure 89: Jin Jiang’s hotel portfolio* by region & type, 31 December 2015
Plateno Group
Vienna Hotels Group
Brand portfolio
Jin Jiang brands
Louvre brands
Figure 90: Louvre Hotel Group’s portfolio by brand, 2017
Recent developments
Plateno enters Vienna

ACCORHOTELS
SWOT analysis
Figure 91: AccorHotels’ brand* portfolio by asset management structure, 31 December 2015
Brand portfolio
Figure 92: AccorHotels’ brand* portfolio by region, 31 December 2015
Luxury and upscale
Fairmont
Figure 93: Heritage Place & Fairmont Residences locations by country, 2016
Raffles Hotels & Resorts
Sofitel
Swissôtel
MGallery by Sofitel
Pullman Hotels & Resorts
Grand Mercure
The Sebel Hotels and Apartments
Midscale
Novotel
Suite Novotel
Mercure
Mama Shelter
Adagio/Adagio Access
Economy
ibis
ibis Styles
ibis budget
hotelF1
Recent developments
Accor moves into luxury and alternative accommodation
onefinestay
Accor launches Jo & Joe
Both Townsters and Tripsters targeted
Accor buys into 25hours
Accor to bring Mama Shelter and Jo & Joe to Asia
Accor acquires John Paul concierge services
A strategic partnership with Banyan Tree
AccorHotels creates lifestyle brands division
AccorHotels plans to spin off HotelInvest

CHOICE HOTELS INTERNATIONAL
SWOT analysis
Brand portfolio
Figure 94: Choice’s brand portfolio over the year ended 31 December 2015
Cambria hotels and suites
Ascend Hotel Collection
Comfort Inn
Comfort Suites
Sleep Inn
Clarion
Quality
MainStay Suites
Suburban Extended Stay Hotel
Econo Lodge
Rodeway Inn

HUAZHU (CHINA LODGING GROUP)
SWOT analysis
Brand portfolio
Recent developments
BTG/HOMEINNS
SWOT analysis
Brand portfolio
Homeinn
Recent developments

BEST WESTERN
SWOT analysis
Brand portfolio
Best Western
Prototype specifications
Figure 95: Prototype specifications for a new-build Best Western hotel, 2017
Best Western Executive Residency
Best Western Plus
Best Western Premier
Best Western Premier Collection
GL?
V?b
Prototype specifications
Figure 96: Prototype specifications for a new-build V?b hotel, 2017
Recent developments
SureStay Hotels, Best Western’s new ‘white label’ franchise
Developed in collaboration with the AAHOA
Benefits for hoteliers
TripAdvisor score an important criterion
Incentives for initial members

INDUSTRY INSIGHT: EXCLUSIVE INTERVIEW WITH SOPHIE PERRET, DIRECTOR HVS, LONDON

INDUSTRY INSIGHT: EXCLUSIVE INTERVIEW WITH MARY GOSTELOW, EDITOR/PUBLISHER OF THE GOSTELOW REPORT

WHAT NEXT?
A blurring of the lines in the lodging sector
OTA rates to come down further
Hotels by the hour
Going mainstream
Boosting revenue in a difficult environment
Backed by AccorHotels founder

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