in the European Union
|Paris, 6th February 2006
25 European Union member countries
* Rezidor: Radisson SAS, Country Inn, Park Inn, Regent, - Park Plaza International: Park Plaza - Radisson Edwardian
With the integration of the Meridien brand, Starwood Hotels and Resorts joins the Top 10 of European hotel groups.
One of the major events of the year was undoubtedly the realization of the take over of Le Meridien by Starwood Hotels and Resorts. This take over allows the american group to make a remarkable entry in the Top 10 of hotel chains that are established in Europe. In the European Union, the supply of the chain increases by more than 10 000 rooms in one year!
Four of the hotel chains post increases of more than 4 000 rooms in their hotel supply.
Accor reinforces its position of unchallenged leader on the continent due to a 1,7% increase of its supply hence a volume of more than 4000 rooms and 38 additional hotels. On the Super-economic hotel segment, the development of Formule 1 is definitely put on stand by whereas the group privileges Etap Hotel that takes an increasingly important place in the European hotel industry landscape. Ibis and Mercure strengthen their position as second and third brands in the ranking. Accor places this year again 5 of its brands in the Top 10. The French group still regroups more than three times the numbers of establishments than its follower, Best Western.
As such Best Western remains the second group in Europe and also records a clear progression in 2005 (4 900 rooms). The result of the american franchisor appears to come from a recovery of the extension of the Best Western network after several years of reduction of its consecutive supply to the implementation of a strategy of "cleaning" its supply (skimming of the units that do not correspond to the brand’s ambitions).
Another European Giant, InterContinental Hotels Group also ensures its development and sees its supply grow by 6,7% in 2005. Holiday Inn benefits in particular from the recovery of new franchise contracts from ex Queen Moat Houses establishments in the United Kingdom. This brand has restarted its growth after the shrinkage of its supply.
Another brand of the chain to have favorable winds, Express by Holiday Inn demonstrates the vitality of the budget segment on the other side of the channel. As such Premier Travel Inn, the budget brand of the Whitbread group has seen its supply pursue its growth by 28 units.
Another chain that is amongst the most dynamic in Europe, Carlson has acquired 25% of the shares of its master European franchisor Rezidor. A pledge of confidence in the future developments of the brands of the chain, in particular Radisson SAS and Park Inn. From one year to another, it is thus nearly 5 000 additional rooms which carry one of the brands of the Carlson group.
Behind these remarkable progressions, the supply evolution of the German specialist in leisure hotels TUI or of the American franchisor Choice are not as strong but nevertheless represent a volume of more than 1 000 rooms. In both cases, the observed growth in 2005 is a follow up of the previous year in the reduction of the hotel supply of each one of these groups.
Sol Melia proposes a relatively stable supply from one year to another, counterbalancing the abandonment of the management of under-performing establishments with the signature of multiple franchise contracts in its domestic market.
Lastly, this year 2005 will also have been remembered by the purchase of the Louvre hotels by the investment firm Starwood Capital. The brands of the French group, Première Classe, Campanile and Kyriad, have an especially well established position in France. The slight decline of the group this year is resulting from the loss of several affiliates of the luxury Concorde brand. Furthermore, Starwood capital projects to develop a new luxury hotel network, whose name, Crillon Hotels, takes on the name of the most famous establishment of the Concorde network.
After the period of slowdown that the industry has known these last years, two trends appear to emerge from the results of the year 2005:
25 European Union member countries
* Mercure Network : incl. Libertel, Orbis, Parthenon
MKG Consulting is the leader in consulting for the Hotel, Tourism and Catering sector, and has the largest hotel database in the world outside the USA, with a good representation of all the hotel segments. MKG database’s monthly program is based on a sample of 10 000 corporate chain hotels, representing 1 000 000 rooms.
Since September 2004, the MKG Consulting database proposes a program that allows the daily monitoring of activity indicators for each hotel. This program counts 1 500 hotels and 125 000 rooms in France which makes it the most developed daily program in Europe.
|Also See:||Ranking - Top Ten Worldwide Hotel Chains Growth 1995-2005 / October 2005|
|World Leisure Destinations Experiencing Rising Occupancy Rates Almost Everywhere / February 2006|
|The Riots in the French Suburbs: A Limited Impact on Hotel Activity / November 2005|