Table of Contents
Introduction
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- Key findings
Data Sources
Abbreviations
Issues in the Market
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- Hotel cycle peaking in North America
- Hotels confront the sharing economy
- Hotel loyalty schemes combat OTAs
- Brand proliferation
- Chinese brands on the rise
- Rising political uncertainty
Global Summary
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- Demographic trends
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- Figure 1: Population of the world & major regions (m), 2015, 2030, 2050 & 2100
- The migration factor
- Economic, interest-rate and currency outlook
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- Figure 2: Overview of the World Economic Outlook projections (% change, unless noted otherwise), January 2017 update
- Currency outlook
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- Figure 3: Foreign exchange outlook, 2017
- Outlook for spending on travel and tourism
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- Figure 4: Spending* on travel & tourism worldwide (US$bn), 2015 & 2026
- Africa
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- Figure 5: Spending* on travel & tourism in Africa (US$bn), 2015 & 2026
- Americas
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- Figure 6: Spending* on travel & tourism in Americas (US$bn), 2015 & 2026
- Asia Pacific
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- Figure 7: Spending* on travel & tourism in Asia Pacific (US$bn), 2015 & 2026
- Europe
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- Figure 8: Spending* on travel & tourism in Europe (US$bn), 2015 & 2026
- Middle East
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- Figure 9: Spending* on travel & tourism in the Middle East (US$bn), 2015 & 2026
- Impact of higher interest rates on hotel values
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- Figure 10: Cap rates* vs. 10-year US treasury bond yields**, 1994-2015
- Worldwide hotel supply
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- Figure 11: Estimated worldwide hotel supply, revenue & chain penetration by region, 2016
Major Hotel Markets
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- Figure 12: Number of hotels in selected country markets, 2014-20
- Australia
- Segmentation
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- Figure 13: Australia – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
- Market shares
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- Figure 14: Australia – travel accommodation: hotel group market share by number of hotels, 2012-15
- Recent developments
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- Figure 15: Year-on-year increase in RevPAR*, 2010-year-to-date September 2016
- AccorHotels restructures lease portfolio
- Brazil
- Segmentation
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- Figure 16: Brazil – travel accommodation: market segmentation by volume (number of establishments*), 2011-15
- Market shares
- AccorHotels
- Atlantica Hotels
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- Figure 17: Brazil – travel accommodation: hotel group market share by number of hotels, 2014-15
- Recent developments
- Canada
- Segmentation
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- Figure 18: Brazil – travel accommodation: market segmentation by volume (number of establishments*), 2010-15
- Market shares
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- Figure 19: Canada – travel accommodation: hotel group market share by number of hotels, 2012-15
- Recent developments
- A boom in hotel deals in Canada indicate another big year
- Foreign investment
- Major markets
- China
- Segmentation
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- Figure 20: China – travel accommodation: market segmentation by volume (number of establishments*), 2012-15
- Market shares
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- Figure 21: China – travel accommodation: hotel group market share by number of hotels, 2012-15
- Leading chains in China
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- Figure 22: Chinese hotel-chain market shares (% of graded hotels), 2015
- Recent developments
- China’s hotel pipeline continues to decline
- Colombia
- Segmentation
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- Figure 23: Colombia – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
- Market shares
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- Figure 24: Colombia – travel accommodation: hotel group market share by number of hotels, 2012-15
- Recent developments
- A new-build Hilton for Bogota
- France
- Segmentation
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- Figure 25: France – travel accommodation: market segmentation by volume (number of establishments*), 2010-15
- Market shares
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- Figure 26: France – hotel group market share ranked by number of hotels, 2012-15
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- Figure 27: Ranking of integrated hotel chains in France by room capacity, 2016
- Recent developments
- Germany
- Segmentation
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- Figure 28: Germany – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
- Market shares
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- Figure 29: Germany – travel accommodation: hotel group market share by number of hotels, 2012-15
- Recent developments
- Hotel investments set another record
- Secondary locations in high demand
- India
- Segmentation
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- Figure 30: India – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
- Market shares
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- Figure 31: India – travel accommodation: hotel group market share by number of hotels, 2012-15
- Recent developments
- International brands are taking over
- Big expansion plans
- Chinese buy into India
- Indonesia
- Segmentation
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- Figure 32: Indonesia – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
- Market shares
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- Figure 33: Indonesia – travel accommodation: hotel group market share by number of hotels, 2012-15
- Recent developments
- Waldorf Astoria Bali
- Italy
- Segmentation
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- Figure 34: Italy – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
- Market shares
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- Figure 35: Italy – travel accommodation: hotel group market share by number of hotels, 2011-15
- Recent developments
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- Figure 36: Hotel investment volume in Italy 2011, YTD Q3 2016
- Investors come to Italy by default
- Becoming more realistic?
- No distressed asset bonanza
- Milan hotel market
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- Figure 37: Recent hotel openings & pipeline in Milan, 2017
- Rome hotel market
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- Figure 38: Recent hotel openings & pipeline in Rome, 2017
- Japan
- Segmentation
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- Figure 39: Japan – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
- Market shares
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- Figure 40: Japan – travel accommodation: hotel group market share by number of hotels, 2012-15
- Recent developments
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- Figure 41: Trend in occupancy rate, ryokans vs. limited-service hotels, 2011-15
- Government support for ryokans
- Effort to rebalance incoming tourism
- Mexico
- Segmentation
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- Figure 42: Mexico – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
- Market shares
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- Figure 43: Mexico – travel accommodation: hotel group market share by number of hotels, 2014-15
- Recent developments
- Hilton’s rapid expansion
- Nine more added to pipeline
- Russia
- Segmentation
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- Figure 44: Russia – travel accommodation: market segmentation by volume (number of hotels*), 2009-15
- Market shares
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- Figure 45: Russia – travel accommodation: hotel group market share by number of hotels, 2012-15
- Recent developments
- South Africa
- Segmentation
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- Figure 46: South Africa – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
- Market shares
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- Figure 47: South Africa – travel accommodation: hotel group market share by number of hotels, 2014-15
- Recent developments
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- Figure 48: Key performance data for hotels in South Africa, 2012-20
- Pipeline and recent openings
- South Korea
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- Figure 49: South Korea’s top 10 inbound source markets, 2015-16
- Segmentation
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- Figure 50: South Korea – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
- Market shares
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- Figure 51: South Korea – travel accommodation: hotel group market share by number of hotels, 2011-15
- Recent developments
- Spain
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- Figure 52: Trend in incoming tourist arrivals in Spain, 2007-15
- Segmentation
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- Figure 53: Spain – travel accommodation: market segmentation by volume (number of establishments*), 2009-15
- Market shares
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- Figure 54: Spain – travel accommodation: hotel group market share by number of hotels, 2013-15
- Recent developments
- Hotel performance on the upswing
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- Figure 55: Trend in Spanish hotel performance, 2007-15
- Major urban markets
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- Figure 56: Spain’s major urban hotel markets ranked by RevPAR, 2014-15
- Barcelona is supply constrained
- Pipeline
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- Figure 57: Barcelona pipeline, September 2016
- Madrid is also interesting
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- Figure 58: Madrid pipeline, September 2016
- Other cities
- Major resort markets
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- Figure 59: Spain’s major resort hotel markets ranked by RevPAR, 2014-15
- Málaga the ‘new Barcelona’?
- Turkey
- Segmentation
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- Figure 60: Turkey – travel accommodation: market segmentation by volume (number of establishments*), 2010-15
- Market shares
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- Figure 61: Turkey – travel accommodation: hotel group market share by number of hotels, 2014-15
- Recent developments
- UK
- Segmentation
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- Figure 62: UK – travel accommodation: market segmentation by volume (number of establishments*), 2014-15
- Market shares
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- Figure 63: UK – travel accommodation: hotel group market share by number of hotels, 2011-15
- Recent developments
- Whitbread plans 100,000 more rooms
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- Figure 64: UK hotel market by segment (% share of rooms), 2010-20
- US
- Segmentation
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- Figure 65: US – travel accommodation: market segmentation by number of establishments* (000), 2008-15
- Market shares
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- Figure 66: US – travel accommodation: hotel group market share by number of hotels, 2012-15
- Leading hotel chains in the US
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- Figure 67: Leading hotel groups in the US ranked by number of rooms, June 2015
- Recent developments
- Weaker growth in international and business travel
- US hotel pipeline at December 2016
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- Figure 68: US pipeline by chain scale segment (number of rooms % change), December 2016 vs. December 2015
- Top markets for new hotel openings in 2017
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- Figure 69: Leading markets for the opening of new rooms & hotels in 2017, December 2016
- Vietnam
- Segmentation
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- Figure 70: Vietnam – travel accommodation: market segmentation by volume (number of establishments*), 2011-15
- Market shares
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- Figure 71: Vietnam – travel accommodation: hotel group market share by number of hotels, 2012-15
- Recent developments
- Bright prospects for hospitality sector but caution is warranted
- Dream Hotel Group to enter Vietnam
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Hotel Cycle Peaking in North America?
Hotels Confront the Sharing Economy
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- Hotel associations react
- Enforcement of regulations is difficult
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- Figure 72: Weekly number of Airbnb listings in Berlin, 2015-16
- Room Mate embraces the sharing economy
- Only the best are chosen
- Location and booking
- Hotel services on tap
- The way forward?
Hotel Loyalty Schemes Combat OTAs
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- AccorHotels moves to attract direct bookings
- Le Club discounts
- IHG’s lowest price guarantee
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- Figure 73: IHG’s channel revenue contribution (% breakdown), 2015
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- Figure 74: IHG’s direct online revenue booked (US$bn), 2011-15
- IHG Rewards Club exclusive rates
- Hilton’s ‘Stop Clicking Around’ campaign
- Hilton’s video ad campaign
- Hilton claims gains from direct booking
- Marriott’s direct booking campaigns
- Beyond lower rates …
- Hyatt promotes direct booking too …
- Choice follows suit …
- OTAs should charge less
- The OTAs react and threaten ...
- OTA business model to evolve?
- Direct booking campaigns concern a good portion of industry
- Dimming abandoned
Brand Proliferation
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- Development considerations a major factor
- Will they all succeed?
- Impact on hotel owners
Chinese Brands on the Rise
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- Wanda switches to its own brands
- Overseas expansion too
Rising Political Uncertainty
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- Brexit impact
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- Figure 75: Sterling down 17% against the US Dollar, 2016
- Weak Pound boosts UK hotels
- Regions take the lead
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- Figure 76: UK Hotel performance, provinces vs. London, 2015, 2016 & 2017
- Resort hotels booming
- And now the downside
- Labour to be a problem
- Development costs to rise
- Brexit impact on foreign hotel markets
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- Figure 77: Forecast for UK – the change in arrivals in selected destinations, 2017
- Exposed cities
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- Figure 78: UK arrivals in selected city destinations, 2015
- Uncertainty under Trump
- Less regulation to help the bottom line
- Looser banking regulations to spur development
- US hotel values already declining
- Labour force could be a problem
- DACA
- NAFTA withdrawal implications
- Increased enforcement
- Eliminating illegal workers to push up costs
- Political risk in Europe overestimated
Top Ten Hotel Chains Worldwide
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- Figure 79: Top 10 hotel chains ranked by number of rooms, 2016
- Figure 80: Change in the number of branded rooms by top 10 hotel groups in 2015
- 1.4 million rooms in the pipeline
- Leading hotel chains in Europe
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- Figure 81: European hospitality companies by number of rooms at 1 January 2016*
- Leading hotel brands in Europe
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- Figure 82: European hotel brands by number of rooms at 1 January 2016*
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Marriott International
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- SWOT analysis
- Brand portfolio
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- Figure 83: Marriott’s 30 brands by category, 2016
- Luxury
- St. Regis
- Ritz-Carlton
- Bulgari Hotels & Resorts
- EDITION Hotels
- W Hotels
- JW Marriott Hotels & Resorts
- The Luxury Collection Hotels & Resorts
- Upper upscale
- Le Meridien Hotels & Resorts
- Renaissance Hotels
- Westin Hotels & Resorts
- Tribute Portfolio
- Sheraton Hotels & Resorts
- Marriott Hotels
- Autograph Collection
- Design Hotels
- Marriott Executive Apartments
- Delta Hotels & Resorts
- Upscale
- AC Hotels by Marriott
- Aloft
- Element
- Gaylord Hotels
- SpringHill Suites
- Courtyard by Marriott
- Four Points by Sheraton
- Residence Inn by Marriott
- Midscale
- Fairfield Inn & Suites
- Moxy Hotels
- Protea Hotels by Marriott
- TownePlace Suites
- Timeshare
- Marriott Vacation Club
- Grand Residences by Marriott
- The Ritz-Carlton Destination Club
- Loyalty programme relationship
- Managing the brand portfolio
- Marriott has a good track record
- Accent on Aloft and Element
- Recent developments
- Integrating loyalty schemes a top priority
- Owner issues
- Positive aspects for owners
- Marriott’s Luxury Brands Group
- Growth in Marriott’s luxury portfolio
Hilton
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- SWOT analysis
- Brand portfolio
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- Figure 84: Hilton’s brand portfolio by share of existing rooms & pipeline, August 2016
- Luxury
- Waldorf Astoria Hotels & Resorts
- Conrad Hotels & Resorts
- Upper upscale
- Hilton
- Curio A Collection by Hilton
- Embassy Suites by Hilton
- Upscale
- Canopy by Hilton
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- Figure 85: Canopy’s pipeline, January 2017
- DoubleTree by Hilton
- Hilton Garden Inn
- Homewood Suites by Hilton
- Midscale/select service
- Hampton by Hilton
- Home2 Suites by Hilton
- Tru by Hilton
- Timeshare
- Hilton Grand Vacations
- Recent developments
- Sale of stake to HNA to be finalised soon
- REIT and timeshare spun off
- Reverse stock split
- Park Hotels & Resorts
- New brands on the way
- Hilton launches another soft brand
- Branding on the cheap
- Tapestry versus Curio
- A meticulously chosen brand name
- Tapestry Collection’s targeting an already crowded marketplace
- Hilton updates its loyalty programme
- Hilton Honors Points & Money slider
- Points Pooling
- Amazon Shop with Points
- Diamond Status Extension
- Loyalty is critical
InterContinental Hotels Group (IHG)
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- SWOT analysis
- Brand portfolio
- InterContinental
- Kimpton
- Kimpton arrives in Europe
- Hotel Indigo
- Even
- HUALUXE
- Crowne Plaza
- Holiday Inn
- Holiday Inn Express
- Holiday Inn Resort
- Holiday Inn Vacations
- Staybridge Suites
- Candlewood Suites
- Recent developments
Wyndham Hotel Group
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- SWOT analysis
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- Figure 86: Wyndham’s hotel capacity & performance by region, 2015
- Brand portfolio
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- Figure 87: Wyndham's hotel portfolio by chain scale, 2013-15
- Figure 88: Wyndham’s hotel capacity by brand & region, 2016
- Recent developments
- Wyndham gets foothold in Latin America
Jin Jiang
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- SWOT analysis
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- Figure 89: Jin Jiang’s hotel portfolio* by region & type, 31 December 2015
- Plateno Group
- Vienna Hotels Group
- Brand portfolio
- Jin Jiang brands
- Louvre brands
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- Figure 90: Louvre Hotel Group’s portfolio by brand, 2017
- Recent developments
- Plateno enters Vienna
AccorHotels
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- SWOT analysis
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- Figure 91: AccorHotels’ brand* portfolio by asset management structure, 31 December 2015
- Brand portfolio
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- Figure 92: AccorHotels’ brand* portfolio by region, 31 December 2015
- Luxury and upscale
- Fairmont
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- Figure 93: Heritage Place & Fairmont Residences locations by country, 2016
- Raffles Hotels & Resorts
- Sofitel
- Swissôtel
- MGallery by Sofitel
- Pullman Hotels & Resorts
- Grand Mercure
- The Sebel Hotels and Apartments
- Midscale
- Novotel
- Suite Novotel
- Mercure
- Mama Shelter
- Adagio/Adagio Access
- Economy
- ibis
- ibis Styles
- ibis budget
- hotelF1
- Recent developments
- Accor moves into luxury and alternative accommodation
- onefinestay
- Accor launches Jo & Joe
- Both Townsters and Tripsters targeted
- Accor buys into 25hours
- Accor to bring Mama Shelter and Jo & Joe to Asia
- Accor acquires John Paul concierge services
- A strategic partnership with Banyan Tree
- AccorHotels creates lifestyle brands division
- AccorHotels plans to spin off HotelInvest
Choice Hotels International
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- SWOT analysis
- Brand portfolio
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- Figure 94: Choice’s brand portfolio over the year ended 31 December 2015
- Cambria hotels and suites
- Ascend Hotel Collection
- Comfort Inn
- Comfort Suites
- Sleep Inn
- Clarion
- Quality
- MainStay Suites
- Suburban Extended Stay Hotel
- Econo Lodge
- Rodeway Inn
Huazhu (China Lodging Group)
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- SWOT analysis
- Brand portfolio
- Recent developments
BTG/Homeinns
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- SWOT analysis
- Brand portfolio
- Homeinn
- Recent developments
Best Western
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- SWOT analysis
- Brand portfolio
- Best Western
- Prototype specifications
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- Figure 95: Prototype specifications for a new-build Best Western hotel, 2017
- Best Western Executive Residency
- Best Western Plus
- Best Western Premier
- Best Western Premier Collection
- GLō
- Vīb
- Prototype specifications
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- Figure 96: Prototype specifications for a new-build Vīb hotel, 2017
- Recent developments
- SureStay Hotels, Best Western’s new ‘white label’ franchise
- Developed in collaboration with the AAHOA
- Benefits for hoteliers
- TripAdvisor score an important criterion
- Incentives for initial members
Industry Insight: Exclusive Interview with Sophie Perret, director HVS, London
Industry Insight: Exclusive Interview with Mary Gostelow, editor/publisher of the Gostelow Report
What Next?
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- A blurring of the lines in the lodging sector
- OTA rates to come down further
- Hotels by the hour
- Going mainstream
- Boosting revenue in a difficult environment
- Backed by AccorHotels founder
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