Due to pre-planned projects, most leading hotel groups posted positive
supply growths / MKG Hospitality�s world ranking 2009.
WORLD, 26 May 2009: UK-based InterContinental Hotel Group (IHG) retains
its number one position in the world, surpassing the 600,000 room mark.
Meanwhile, Hilton Hotels recorded the largest growth among the top 10
at 9.3%, bringing their global room count to over half-a-million.
Projects already launched prior to the financial downturn transpired
in 2008, hence why there are still such positive increases. Although some
growth is still expected, the rest of 2009 and the beginning of 2010 will
prove to be much slower, with companies acting a lot more cautious in order
ride-out the current economic uncertainty. According to Director of Development,
MKG Hospitality, Vanguélis Panayotis, franchise contracts will now
be the major battle ground for these leading hotel groups.
Top 10 Hotel Groups in the world
Since 2004, IHG has been the world�s largest hotel group. 25,000
new rooms joined the group�s inventory in the second half of 2008, whilst
a pipeline growth of 250,000 over the next few years should make sure IHG
remains the world�s number one group. The group�s continued growth was
aided by the expansion of Holiday Inn Express, taking advantage of the
economy segment�s currently strong position. This was supported with expansion
of Crowne Plaza, the arrival of long-stay brand Staybridge Suites and Indigo
boutique hotels in Europe, as well as entry into the timeshare market in
September with Holiday Inn Club Vacations. Overall, IHG recorded a 5.9%
global room supply growth.
Wyndham International trails in second position. The US-based
group recorded a 7.7% increase in its rooms supply, edging ever so closely
to the number one spot. This growth was predominantly driven by the $131
million acquisition of two brands from Global Hyatt, the economy Microtel
Inns and the long-stay product Hawthorn Suites, together adding almost
400 new properties.
Marriott International maintains a high average growth rate of
4.7%, as well as extensive expansion plans � 800 hotels totalling 125,000
rooms, most of which are in an advanced development stage. To further strengthen
their presence, the group is undertaking considerable investments in existing
brands.
Blackstone�s expansion plans for Hilton Hotels, is certainly
living up to its expectations, with almost 300 new properties added to
the portfolio in 2008. Growth of the La Quinta brand was one of the main
contributors, almost doubling its room inventory since it joined the fold
in 2006.
Making up the top five, Accor Group is fast approaching half-a-million
rooms, recording a growth of 3.7%. This is indeed a positive turnaround
after a 5.6% decrease in 2007 � caused by the disposals of Red Roof Inns
and around forty Dorint hotels. The group managed to open its 800th Ibis
brand in 2008 (Shanghai, China), and together with strong growth from Etap
Hotels and Formule 1, cements its position in the global budget/economy
sector. Overall, Accor�s expansion plans continue to remain a priority,
with 105,000 new rooms planned. The group is also intending to carry on
with the business model transformation strategy and re-organisation of
brands:
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repositioning of Sofitel as a luxury brand and creating new lines, such
as Sofitel Luxury, So by Sofitel and Sofitel Legend;
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the launch of upscale business brand Pullman, and for leisure guests MGallery;
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as well as All Seasons in the non-standardised 2* segment.
Recording a global room supply growth of 4.5%, American franchiser Choice
Hotels has not shifted position in the ranking. Upscale brand Cambria
expanded rapidly with 12 hotels in operation and a pipeline of 61 properties.
In order to better diversify its supply, the group is considering the creation
of two new upscale brands, a full service, as well as an extended stay
concept.
Although global supply decreased by just over one 1%, Best Western
development in Europe is strong, particularly in France. The highlight
of 2008 was no doubt the opening of the group�s first 5-star property in
Europe (Prague). The upscale Premier label is gaining importance, with
its arrival in China and Dubai.
Starwood Hotels & Resorts room supply increased by 3.7%.
Revitalisation of Sheraton, now 70% complete, is beginning to pay off,
with supply growing by more than 10 hotels despite the disappearance of
twenty or so hotels that no longer correspond to new standards. Starwood
will soon be able to count on two new brands, Element and Aloft, whilst
W Hotels� expansion throughout EMEA will also surely make its presence
felt.
With just over 150,000 room, representing a 2% increase, Carlson
ranks 9th. The opening of Radisson St Martin Resort, Marina & Spa confirms
global appeal of the group�s key brand, whilst the goal of 20,000 rooms
in operation or under development in Asia-Pacific has been reached. In
Europe, Carlson announced its desire to increase its holdings in Rezidor
(currently owning 44%), a group which promises to have a dynamic growth.
Completing the top ten, Global Hyatt recorded a global room
supply decline of 17.4%. This however was a direct influence of the group�s
strategy to concentrate on its upscale segment. Apart from this, all other
brands experienced solid growth. Launched over two years ago, Hyatt Place
already has more than 130 properties.
About MKG Group
Established in 1985, MKG Group has built a reputation for solid business
expertise and substantial know-how in the fields of tourism, lodging and
food service. MKG Group meets the needs of each of its clients by providing
the valuable analytical and decision-making skills necessary for success.
www.mkg-group.com
Methodology & Innovation
With a team of over 60 experienced consultants, as well as advanced
research and analytical tools and applications, MKG Hospitality provides
a unique savoir-faire in four major areas of expertise: Market Research;
Financial Feasibility Studies; Consulting; and Sector publications.
MKG Hospitality is a global leader in tourism, hotel and catering consulting,
with the largest database in the world (outside the US), representing all
segments from budget to upscale hotels. MKG�s customised database, Hotel
CompSet, contains a sample of over 200 brands and 11,000 corporate chain
hotels, representing more than one million rooms. Hotel CompSet provides
daily, monthly and yearly monitoring of hotel indicators and analyses of
its sample. www.hotelcompset.com
Together with other specialised brands, MKG Qualiting, OlaKala, Worldwide
Hospitality Awards, Global Lodging Forum, HTR Magazine and Hotel Restau
Hedbo, MKG Group supports investors, hoteliers and key tourism players
improve performance, boost productivity and achieve results. www.mkg-hospitality.com
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