News for the Hospitality Executive |
September 6, 2011 - US based hotel groups and brands continue to
dominate at home. However, as the local market is the most mature hotel
mare, future development growth is being explored abroad, with Europe
and Asia the priority.
The US hotel industry continues to be dominated by locally
based groups, completely made-up of household and locally developed
brands. According to latest research conducted by industry experts MKG
Hospitality, Hilton Hotels remains the number one group in the US with
over 486,000 rooms. Making up the top three groups is Marriott
International with over 480,000 rooms and Wyndham Hotel Group with over
455,000. The number one hotel brand in the US is yet again Hampton Inn
with almost 171,000 rooms, followed by Best Western with over 165,000
and then Comfort Inns & Comfort Suites with over 160,000. In fact, almost two thirds of room stock among the top 12
hotel groups is found right here in the US. Of the top 20 hotel brands,
almost three quarters of stock is based here in the US – many brands
having little or no presence outside the country. The only exceptions
are purely due to acquisitions (and again of US manufactured brands),
with InterContinental Hotels Group taking over Holiday Inn and Express
by Holiday Inn and Accor purchasing Motel 6 (Redd Roof being sold in
2007). After this, you have to go way down the list to find another
foreign brand, namely Canadian based Fairmont Raffles and Four Seasons
Hotels & Resorts in 25th and 26th position, respectively. Looking at pipeline growth, US brands are now very much
focused abroad. Europe is a prime choice due to being the second most
mature hotel market after the US, as well as having ideological and
cultural similarities therefore better suited to product concepts.
Meanwhile, Asia and the Middle East are also hot development markets.
There are however many challenges to overcome for US hotel groups
seeking expansion to other worldwide markets. For starters, adapting
their structure to fit local laws and regulations, as well as
consistency with real estate values, hence investment strategies. Then
there is existing competition from domestic players that are well
represented, especially in Europe. “The key to success will be how quickly they can reach a critical network size even somewhat similar to what they have in the US. This is especially true for economy and budget brands where such factors are crucial in order to make business sense,” adds Panayotis. ABOUT MKG GroupEstablished in 1985 by Georges Panayotis, MKG Group has built a solid reputation for business expertise and substantial European-based know-how in the fields of tourism, lodging and food service. MKG Group meets the needs of each of its clients by providing valuable analytical and decision-making skills necessary for success. www.mkg-group.com |
For further information , please contact : MKG Group - International Development Department Vanguelis Panayotis T. : +33 (0)1 56 56 87 87 [email protected] MKG Hospitality - Media Contact Michael Komodromou Tel: +44 (0)20 7624 4030 [email protected] Web: www.mkg-hospitality.com
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