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The Top Ten Hotel Brands in the European Union
on January 1,  2006
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Paris, 09 March 2006 • The 10th Hotel Makers Forum, organized by MKG Consulting has confirmed the recovery of the growth of the European hotel chains supply, carried out especially by the leaders.

• The Accor group maintains its European supremacy with a growth of its supply superior to 4500 rooms. Four other groups also exceed the 4000 new rooms available on the market.

• The year was rich in financial operations : sale of assets, transfer of ownership, massive contribution of capital. Investment funds are increasingly active in the sector.

The ten first European groups increase their perimeter by some 30 000 rooms

On January 1st 2006, the hotel chains supply in Europe has increased by 3,7%, a real push on the accelerator that is felt even more strongly amongst the top ten hotel groups, which are especially dynamic. Whereas at the beginning of 2005, their supply had only increased by 0,5%, this year, the growth is of 4,9%, hence 32 819 rooms.

5 groups have exceeded an increase of 4000 rooms: Accor, Best Western, InterContinental, Rezidor SAS and especially Starwood Hotels, which integrates the European supply of Le Meridien in its perimeter and makes its appearance in the top ten of European hotel groups.

This new acceleration seems to mark a trend reversal : after having reached the bottom of a cycle, the growth of demand is today an established fact that encourages the openings of establishments.

The Group Accor, 1st European group, relies on the development of Etap Hotel

The Accor group, the unchallenged European leader, totalizes through all of its brands, three times more rooms than its two immediate followers, Best Western and InterContinental Hotels Group, and four times more than its French rival, Louvre Hotels. 

If its Leading brands, Ibis, Mercure, Formule 1 and Novotel, record modest growths, even a slight decrease for Novotel, the growth of Etap Hotel (+ 7,6%) demonstrates the dynamism of budget hotels. 

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The 10 first hotel brands in the European union on January 1st 2006
Hotels
Rooms
Evolution
Rank

2006

Rank

2005

Brand
Group
2006
2005
2006
2005
Rooms
%
1
1
Best Western Best Western
1 195
1 123
78 140
73 234
4 906
6,7%
2
2
Ibis Accor
616
598
63 759
61 993
1 766
2,8%
3
3
Mercure Accor
545
543
61 757
61 721
36
0,1%
4
4
Novotel Accor
274
279
43 270
44 084
-814
-1,8%
5
5
Holiday Inn Ich Group
280
268
43 195
41 378
1 817
4,4%
6
6
Hilton Hilton Int’l.
129
131
33 503
32 911
592
1,8%
7
7
Nh Hotels Nh
217
201
30 553
28 137
2 416
8,6%
8
8
Premier Travel Inn Whitbread
463
435
29 000
26 728
2 272
8,5%
9
9
Etap Hotel Accor
326
307
26 320
24 426
1 894
7,8%
10
10
Formule 1 Accor
326
326
24 083
24 067
16
0,1%
TOTAL 10 BRANDS
4 371
4 211
433 580
418 679
14 901
3,6%
Source : MKG Consulting Database – 02/2006

The 10 first hotel groups in the European union on January 1st 2006

Hotels
Rooms
Evolution
Rank

2006

Rank

2005

Brand
Country
2006
2005
2006
2005
Rooms
%
1
1
Accor
F
2 197
2 159
239 279
235 205
4 074
1,7%
2
2
Best Western
USA
1 195
1 123
78 140
73 234
4 906
6,7%
3
3
ICH Group
GB
498
470
76 794
72 381
4 413
6,1%
4
4
Louvre Hotels
F
851
862
59 475
60 607
-1 132
-1,9%
5
5
Hilton International
GB
243
254
53 600
54 411
-811
-1,5%
6
6
Sol Melia
SP
208
208
45 652
42 419
3 233
7,6%
7
7
Tui
GER
170
166
41 508
40 093
1 415
3,5%
8
8
Choice
USA
409
404
35 792
34 800
992
2,9%
9
9
Carlson / Rezidor / Park Plaza Int’l
USA
184
158
35 352
30 586
4 766
15,6%
10
13
Starwood Hotels & Resorts
USA
144
101
33 819
22 856
10 963
48,0%
TOTAL 10 GROUPS
6 099
5 905
699 411
666 592
32 819
4,9%
Source : MKG Consulting Database – 02/2006
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A very active year for investment funds

The year 2005 will especially be remembered by the number and the importance of the financial transactions on the industry with two series of operations: massive transfers of assets and changes of shareholding.

Besides the billion euros brought under the from of convertible bonds by Colony Capital, the Accor Group has mobilized a second billion euros, by selling the ownership of 128 hotels to the Foncière des Murs. The groups Hilton International, InterContinental and Whitbread have also sold for several million euros the assets of part of their supply, sometimes losing the management of the hotel such as the InterContitnental in Paris.

Furthermore whole groups have changed hands, such as B&B sold by Duke Street to Eurazeo or the Taittinger group leaving the bosom of the family to the American Starwood Capital. Other operations have taken place at the beginning of the year such as the takeover of Hilton International by Hilton Corporation or are taking place such as the transfer of Travelodge by the Permira funds, the sale of the property of Macdonald hotels. 

Only in 2005, more than 10 billion euros in financial transactions have taken place in the hotel industry, in a very vast majority because of the investment funds that are on the look for investments.

Methodology

MKG Consulting is the European 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. The monthly program of MKG database 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.

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Contact:

Georges Panayotis
MKG Group
+ 33 (0)1 56 56 87 90
georges.panayotis@mkg-group.com

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Also See: Ranking - Top Ten Worldwide Hotel Chains Growth 1995-2005 / October 2005
The 2004 Ranking of Hotel Groups; Including the Ten Hotel Groups with the Greatest Increase in Number of Rooms / MKG Consulting / June 2004

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