Paris, April 25, 2007
-
In a sneak preview of the Worldwide Hotel
Activity Report, MKG Consulting presents the official 2007 ranking* of
groups and hotel brands worldwide. The 10 leading groups cumulated growth
in supply by around 100,000 rooms. Among them, the first 6 posted growth
by more than 10,000 rooms each.
-
InterContinental Hotels Group (IHG) remains
the hotel industry leader worldwide, with more than 3,700 hotels and 550,000
rooms worldwide. The group is increasing its lead on its immediate competitor,
the Wyndham group (ex-Cendant).
-
Although it displays a certain amount of vitality,
the ranking of brands shows no major changes. Express by Holiday Inn, the
7th ranking brand worldwide, climbed 2 positions thanks to 7.5%
growth in its supply. Quality posted 6% growth in its supply and is thus
positioned 11th in the ranking. Two brands in the Accor group,
Motel 6 and Mercure, are making slow progress in the ranking. The brand
Crowne Plaza posts growth in its supply by 15.6% and thus climbs a rung
to 19th position.
-
The outlook for growth is still considerable.
The race to Asia is on. China and India are the priority targets, and the
actors are trying to take their positions as quickly as possible.
-
Movements of capital intensified greatly in
the sector in 2006, and in 2007 this will not let up. Hotel groups are
pursuing their sales programs, investment funds are increasingly at hand,
and the rumors of new large-scale acquisitions are persistent.
The top 10 hotel groups worldwide
on 01/01/2007
(in rooms)
|
|
|
|
Hotels
|
Rooms
|
Change
|
Ranking
07
|
Ranking
06
|
Group
|
Country
|
2007
|
2006
|
2007
|
2006
|
Ch.
|
%
|
1
|
1
|
INTERCONTINENTAL
HG |
GB
|
3 741
|
3 606
|
556 246
|
537 533
|
18 713
|
3,5%
|
2
|
2
|
WYNDHAM
WORLDWIDE |
USA
|
6 473
|
6 348
|
543 234
|
532 669
|
10 565
|
2,0%
|
3
|
3
|
MARRIOTT
INT. |
USA
|
2 775
|
2 672
|
502 089
|
485 979
|
16 110
|
3,3%
|
4
|
5
|
HILTON
CORP. |
USA
|
2 901
|
2 744
|
497 738
|
472 510
|
25 228
|
5,3%
|
5
|
4
|
ACCOR |
FRA
|
4 121
|
4 065
|
486 512
|
475 433
|
11 079
|
2,3%
|
6
|
6
|
CHOICE |
USA
|
5 316
|
5 145
|
429 401
|
418 488
|
10 913
|
2,6%
|
7
|
7
|
BEST
WESTERN |
USA
|
4164
|
4 195
|
315 401
|
315 875
|
-474
|
-0,2%
|
8
|
8
|
STARWOOD
HOT. & RES. |
USA
|
871
|
845
|
265 598
|
257 889
|
7 709
|
3,0%
|
9
|
9
|
CARLSON
HOSPITALITY |
USA
|
945
|
932
|
145 933
|
146 785
|
-852
|
-0,6%
|
10
|
10
|
GLOBAL
HYATT |
USA
|
733
|
738
|
141 011
|
144 671
|
-3 660
|
-2,5%
|
TOTAL
|
32 040
|
31 290
|
3 883 163
|
3 787 832
|
95 331
|
2,5%
|
Source : MKG Consulting Database �
Copyright 04/07
The top 20 hotel brands worldwide
on 01/01/2007
(in rooms)
|
Change
|
Ranking
07
|
Ranking
06
|
Chain
|
Group
|
Hotels 2007
|
Rooms 2007
|
Ch
|
%
|
1
|
1
|
BEST
WESTERN |
BEST
WESTERN |
4164
|
315 401
|
-474
|
-0,2%
|
2
|
2
|
HOLIDAY
INN |
INTERCONTI.
HG |
1395
|
260 470
|
-7 346
|
-2,7%
|
3
|
3
|
MARRIOTT |
MARRIOTT
INT. |
537
|
190 431
|
6 976
|
3,8%
|
4
|
4
|
COMFORT |
CHOICE |
2439
|
184 716
|
2 243
|
1,2%
|
5
|
5
|
HILTON |
HILTON
CORP. |
498
|
172 605
|
7 439
|
4,5%
|
6
|
6
|
DAYS
INN OF AMERICA |
WYNDHAM
WORLD. |
1 859
|
151 438
|
1 136
|
0,8%
|
7
|
9
|
EXPRESS
BY HI |
INTERCONTI.
HG |
1686
|
143 582
|
10 028
|
7,5%
|
8
|
7
|
HAMPTON
INN |
HILTON
CORP. |
1392
|
138 487
|
4 366
|
3,3%
|
9
|
8
|
SHERATON |
STARWOOD |
396
|
135 859
|
1 852
|
1,4%
|
10
|
10
|
SUPER
8 MOTELS |
WYNDHAM
WORLD. |
2 054
|
126 175
|
2 144
|
1,7%
|
11
|
12
|
QUALITY |
CHOICE |
1128
|
112 173
|
6 383
|
6,0%
|
12
|
11
|
RAMADA
WORLDWIDE |
WYNDHAM
WORLD. |
871
|
105 986
|
-2 951
|
-2,7%
|
13
|
13
|
COURTYARD |
MARRIOTT
INT. |
733
|
105 526
|
5 857
|
5,9%
|
14
|
16
|
MOTEL
6 |
ACCOR |
928
|
95 628
|
1 682
|
1,8%
|
15
|
15
|
HYATT
HOTELS |
GLOBAL
HYATT |
214
|
94 224
|
-921
|
-1,0%
|
16
|
17
|
MERCURE |
ACCOR |
732
|
89 624
|
2 391
|
2,7%
|
17
|
14
|
RADISSON
HOTELS |
CARLSON
HOSP. |
400
|
89 365
|
-5 335
|
-5,6%
|
18
|
18
|
IBIS |
ACCOR |
745
|
82 546
|
3 766
|
4,8%
|
19
|
20
|
CROWNE
PLAZA |
INTERCONTI.
HG |
275
|
75 632
|
10 228
|
15,6%
|
20
|
19
|
NOVOTEL |
ACCOR |
397
|
70 373
|
1 118
|
1,6%
|
TOTAL
|
22 843
|
2 740 241
|
50 582
|
1,9%
|
Source : MKG Consulting Database
� Copyright 04/07
The leading groups
break away
-
The year 2006 was marked by strong growth
of inventory for most hotel operators, according to the Worldwide Hotel
Activity Report by MKG Consulting. The 10 leading groups show growth in
their cumulated supply by 100,000 rooms, up by 2.5%. This growth is continuous
with respect to the previous years: 6.8% in 2005 (which may be explained
by the buyout of Hilton International by Hilton Corp.) and 1.2% in 2004.
Among them, the first 6 in the ranking show growth in their supply by more
than 10,000 rooms each, widening the gap with the competing groups whose
growth in supply is decidedly lower, and even slacking off. At the core
of a ranking dominated by American groups, the British InterContinental
Hotels Group (IHG) and the French Accor remain the only representatives
of European hotels, with supplies growing sharply.
-
For the fourth consecutive year, InterContinental
Hotels Group holds its position as the hotel industry leader Worldwide.
With growth in its supply by over 18,000 rooms, the group has lengthened
its distance from its close competitors. It has a supply that is 13,000
rooms larger than its direct competitor, the group Wyndham Worldwide (the
hotel pole that resulted from the Cendant Corporation�s division into four
companies).
-
This year the group Hilton Corp. slips into
4th position ahead of Accor thanks to growth by 25,000 rooms,
30% of which may be attributed to the dynamic Hilton brand. The ranking
presented above does not take into account neither the sale of Scandic
Hotels by Hilton Corp. in March 2007 (22,808 rooms on January 1, 2007),
nor the sale of Red Roof Inns by Accor in April 2007 (35,238 rooms).
Brands that remain
as dynamic as ever
-
Best Western remains the number one brand
worldwide despite the near stability of its inventory.
-
The brands of the group IHG show variable
changes: growth by 10,000 rooms for Express by Holiday Inn and Crowne Plaza,
versus a decrease by 7,500 rooms for Holiday Inn. The latter nonetheless
continues to hold 2nd position, well ahead of Marriott.
-
The Hilton brand, still in 5th
position in the worldwide ranking of brands, also distinguished itself
in 2006 with growth of its inventory by 4.5%, for nearly 7,500 additional
rooms.
-
Among the other major evolutions, Quality
posts 6% growth of its supply, positioning it 11th in the ranking.
Two brands of the Accor group, Motel 6 and Mercure, are gradually moving
up in the ranking, gaining 2 and 1 positions respectively.
Considerable growth
perspectives
-
The growth of the major hotel groups worldwide
will continue in the years to come since most of them have 80,000 to 150,000
rooms in the pipelines*, with implantations spread out over the next 3
to 4 years. Major changes are thus still to be expected, and the acquired
positions may be challenged.
-
The race to Asia is on, with China and India
as the key targets. These countries have many so-called "secondary" metropolises,
although this term is not very appropriate for such vast markets. Flagship
brands lead the way towards development for groups, which multiply their
financial and real estate partnerships (such as Deutsche Asset Management
and HQ Asia Pacific for Hilton Corp. in China, or EMAAR Properties and
InterGlobe for Accor in India), and they plan to take full advantage of
the additional renown acquired to take advantage of the growth of these
supply markets. Currently the international hotel groups that are the best
positioned in Asia are Accor, IHG and Starwood Hotels & Resorts.
Intensification of
movements in the hotel sector
-
The year 2006 was already filled with events,
marked by acquisitions in series and an intensification of programs to
sell real estate properties. The year 2007 is off to a fine start, beginning
with the acquisitions of Scandic Hotels by EQT for 833 million euros, of
Extended Stay Hotels by Lightstone for 8 billion dollars and ANA Hotels
by Morgan Stanley Real Estate for 2.4 billion dollars. Morgan Stanley also
finalized the acquisition of CNL Hotels & Resorts for 6.6 billion dollars.
-
The persistent rumor of a new widescale operation
has the entire sector holding its breath. The group IHG could be the object
of a takeover worth over 11 billion dollars in the months to come. The
potential buyers mentioned include Starwood Capital and Blackstone, two
investment firms that are quite familiar to the sector.
-
Furthermore, the announcement of the resignation
of the CEO of Starwood Hotels & Resorts, Steve Heyer, at the beginning
of April, leaves the hotel group�s future in suspense. A merger with A
partnership with Starwood Capital is not out of the question. Despite a
very intense property sales policy, the hotel group still has real estate
properties that are of interest to Barry Sternlicht.
Methodology
Created in 1985 by Georges Panayotis,
MKG Consulting is the European leader in consulting for the hotel, tourism
and restaurant sector and has the largest hotel database in the world
outside
the United States, with good representation of all hotel segments. The
monthly
observatory of MKG Consulting�s Database is based on a sample
of 10,000 corporate chain hotels, accounting for 1,000,000 rooms.
Since September 2004, MKG Consulting�s
Database offers a program that makes it possible to monitor activity indicators
hotel by hotel on a daily basis. This program includes 1,500 hotels
and 125,000 rooms in France making it the largest daily statistics observatory
in Europe.
* Preliminary data. Definitive results
will be published in:
- The Worldwide Hotel Activity Report ,
produced each year by MKG Consulting, and to be published in the May/June
issue (nr. 146/147) of HTR Magazine;
- The 2007 edition of "Marketing, Trends,
and Strategies of the Hotel Industry in Europe", to be published by the
end of April. This study presents the worldwide hotel ranking and offers
the most complete and detailed analysis of the hotel sector in Europe,
worldwide and by market.
|