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2004 Rankings of the 10 Largest International
Hotel Groups and the 20 Largest Brands
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InterContinental Hotels Group Overtakes Cendant
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Paris, 29 March 2004 - As a preview of the detailed assessment of the worldwide hotel industry, undertaken each year by MKG Consulting and published in the May/June issue of HTR Magazine, here is the ranking of the 10 largest international hotel groups and the 20 largest brands established throughout the world. 
  • By acquiring the American group, Candelwood Suites, the British InterContinental Hotels Group (formerly Six Continents) has taken a leap forward, allowing it for the first time in its history to take over the former world leader, Cendant. The latter recorded a drop in its supply of rooms, which resulted from a more rigorous policy that led to the "cleaning" of its network. 
  • Within a particularly difficult context, the ranking of the largest hotel groups in the world has remained practically unchanged, since all have continued their expansion, notably through franchising. Corporate-run chains, which strongly increased the name-recognition of their brands, did not hesitate in using franchising to spread to geographical regions where they were absent. The race to the globalisation of brands has definitely begun, led by IT network sales technology.
  • Despite a continued policy of tightening membership criteria, leading to the removal of some of its previous members, Best Western remains the brand with the widest global coverage, with a very slight increase.
  • Two brands greatly expanded in 2003: Express by Holiday Inn (+10.2% in number of rooms) and Novotel (+7.3% in number of rooms).
Annual Worldwide Ranking of Hotel Groups 
(YTD 01/01/2004)
Hotels
Rooms
Change
Rank
2003 
Rank
2004 
Group
Cntry.
2003
2004
2003
2004
Rooms
%
2
1
InterContinental Hotels Grp
GB
3,325
3,520
515,525
536,318
20 793
4.0%
1
2
Cendant
USA
6,513
6,403
536,097
518,435
-17 662
-3.3%
3
3
Marriott International
USA
2,493
2,656
453,851
479,882
26 031
5.7%
4
4
Accor
FRA
3,829
3,894
440,807
453,403
12 596
2.9%
5
5
Choice
USA
4,664
4,810
373,722
388,618
14 896
4.0%
6
6
Hilton Corp.
USA
2,078
2,161
336,493
349,965
13 472
4.0%
7
7
Best Western
USA
4,064
4,110
308,911
310,245
1 334
0.4%
8
8
Starwood
USA
748
738
226,970
229,247
2 277
1.0%
9
9
Carlson Hospitality Worldwide
USA
847
881
141,923
147,624
5 701
4.0%
10
10
Hilton International
GB
402
412
100,493
99,364
-1 129
-1.1%
Source: MKG Consulting Database �03/04
(provisional statistics � definitive statistics will be published shortly)

Table of the top 20 brands

Annual Worldwide Ranking of Hotel Brands 
(YTD 01/01/2004)

Hotels
Rooms
Change
Rank
2003 
Rank
2004 
Brand
Group
2003
2004
2003
2004
Rooms
%
1
1
Best Western Best Western
4,064
4,110
308,911
310,245
1,334
0.4%
2
2
Holiday Inn InterContinental 
1,567
1,529
293,346
287,769
-5,577
-1.9%
3
3
Comfort Inns & Suites Choice
2,268
2,366
169,750
177,444
7,694
4.5%
4
4
Marriott Hotels Resorts  Marriott Internat.
450
472
165,200
173,974
8,774
5.3%
5
5
Days Inn of America, Inc. Cendant
1,902
1,892
158,824
157,995
-829
-0.5%
6
6
Sheraton Hotels & Resorts Starwood
396
394
133,519
134,648
1,129
0.8%
8
7
Hampton Inn Hilton Corp.
1,222
1,255
124,653
127,543
2,890
2.3%
7
8
Super 8 Motels Cendant
2,083
2,086
126,862
126,421
-441
-0.3%
10
9
Express by Holiday Inn InterContinental 
1,352
1,455
109,205
120,296
11,091
10.2%
9
10
Ramada Franchise Systems. Cendant
971
905
116,098
104,636
-11,462
-9.9%
11
11
Radisson Hotels Worldwide Carlson Hospitality 
435
441
102,646
103,709
1,063
1.0%
12
12
Motel 6 Accor
863
880
90,890
92,468
1,578
1.7%
15
13
Quality Inns, Hotels, Suites  Choice
820
878
86,662
92,011
5,349
6.2%
14
14
Hyatt Hotels  Hyatt Hotels & Resorts 
206
208
87,000
89,602
2,602
3.0%
13
15
Hilton Hotels Hilton Corp.
231
230
87,618
89,012
1,394
1.6%
17
16
Courtyard Marriott Internat.
587
616
84,356
88,214
3,858
4.6%
16
17
Mercure Accor
733
726
86,525
86,239
-286
-0.3%
18
18
Hilton Hilton International
253
269
73,671
73,058
-613
-0.8%
19
19
Ibis Accor
622
651
65,791
69,950
4,159
6.3%
20
20
Novotel Accor
369
388
62,694
67,268
4,574
7.3%
Source: MKG Consulting Database �03/04
(provisional statistics � definitive statistics will be published shortly)



Within a delicate international context, the major event of 2003 will remain, without a doubt, the rising of InterContinental Hotels Group to the top position in the hotel group ranking. The acquisition of Candlewood Suites in the USA for a total of 15 million dollars brings the number of its hotels to 3,520 for 536,518 rooms. At the same time, Cendant, which dominated the worldwide hotel industry, recorded a drop in the number of its rooms, which nevertheless still totals 6,403 units and 518,435 rooms.

The other leading groups in the worldwide hotel industry were not inactive however. Marriott solidified its third place with an increase of more than 26,000 rooms, which corresponds to a rise of 5.7%. Accor continued its international expansion. As of January 2004, the global supply of the European leader totalled 453,403 rooms. The other American groups also displayed strong growth. Choice continued its development through franchising and expanded its supply by 4%, as did both Hilton Corp. and Carlson Hospitality Worldwide. 

Once again, this year Best Western continued restructuring its network. By reinforcing its membership standards, the brand increased by 0.4%. With a supply of 4,110 units and 310,245 rooms, Best Western nevertheless remained the largest brand in the world. The brand ranking this year did not show any major movement among the heavyweights. Hampton Inn moved up the list by one place and is currently ahead of Super 8 Motels, in 7th place. Among the most remarkable advancements among the 20 largest hotel brands, we notice the increase of Novotel (+7.3%) and of Express by Holiday Inn (+10.2%). The budget brand of the British group thus rose one spot, which confirms the ambition of de InterContinental Hotels Group on this segment. The largest falls in supply concerned Cendant. Ramada Franchise Systems Inc. notably say a drop of 9.9%.

Finally, the first elements of the worldwide assessment of the hotel industry leads to the conclusion that despite the difficulties encountered in 2003, the major global operators have maintained steady development in the conquest of new market shares. Thus, the 10 largest groups in the world increased by 2.3% in 2003 (+78,309 rooms) versus a rise of 2.6% at the end of 2002. For 2004, a census of hotel group development projects, undertaken by MKG Consulting identified 80,000 additional rooms throughout the world, i.e. a volume corresponding to that of the expansion of the 10 largest groups in the world this year. 

MKG Consulting has the largest hotel database in the world outside the USA, with the best coverage of all hotel segments. The MKG Consulting database gathers monthly the data from 40,000 hotels, representing over 2.2 million rooms. The activity results of the MKG Consulting database concern a sample of 9,000 corporate-run chain hotels, representing 1 million rooms. These results are supplied by chain hotels throughout the world, for which MKG Consulting is the official supplier of statistics. 

Contact:

Georges Panayotis
+33 (0)1 56 56 87 90
[email protected]
http://www.mkgconseil.com

 
Also See: 2004 European Ranking of Hotel Groups; Best Western Holds Top Position of 25 Brands in Europe / MKG Consulting / February 2004
With a RevPAR Increase of 7.4%, Austria Was an Island of Prosperity in the European Hotel Landscape in 2003; Chain Hotel Results in Europe - YTD December 2003 / February 2004
Despite One of the Worst Years in International Tourism, the French Hotel Industry Managed to Record Only a Moderate Drop in RevPAR in 2003 / MKG Consulting / January 2004
RevPAR Falls 2.9% for the European Hotel Industry for 12 Months through November 2003; Austria Rises 6.1% in RevPAR / MKG Consulting / January 2004
European Budget Hotel Industry Shows Growth in RevPAR; Not as Cheerful in the Other Hotel Segments / MKG Consulting / November 2003
European Hotel Chains: New Downward Slide in July, 2003 / MKG Consulting / Sept 2003
Finally a Month of Strong Rises in the German Hotel Industry / MKG Consulting / July 2003
Hotel Industry in Europe: Record Drop in the RevPAR in April 2003, But Slight Decrease of the Mid-term Trend / MKG Consulting / May 2003
The Worldwide Ranking of Hotel Groups 2003; The World�s Top Ten International Groups Increase Their Supply by 2.6% / MKG / April 2003
The French Hotel Industry Confirms its Solidity in 2002 and Serenely Forecasts a Year 2003, Despite Geopolitical Instability / MKG Consulting / Feb 2003
European Hotel Industry: Like Last Year, France is Doing Better than all its European Neighbours in 2002 / MKG Consulting / Jan 2003
European Hotel Industry: An Encouraging Month of October / MKG Consulting / Dec 2002
Europe�s Hotel Industry: France Posts Record Performance for September, 2002 / MKG Consulting / Oct 2002
Assessment of the Summer Season for the European Hotel Industry / MKG / Oct 2002


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