Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

International Hotel Industry - December 2009

Travel and Tourism Analyst is a series of insightful, informative reports on specialised areas of the tourism industry.

Each report offers an objective and detailed study covering one of the following five sectors:

  • Accommodation – everything from luxury hotels to 'glamping'
  • Transport – from air travel and car hire to the cruise industry, rail and coach travel
  • Niche Markets – key emerging or established sectors of the industry eg ecotourism, festival tourism
  • Outbound Markets – detailed profiles of the world's tourism origin countries
  • Technology – the evolution of the industry online and new technological developments

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Introduction

      • Definitions
        • Hotel companies
          • Abbreviations
          • Data Sources

            • Economic Outlook

                • The risk of a ‘double-dip’
                  • Commodity prices on the rise again
                    • Figure 1: Forecasted GDP growth by region and major country, 2007-10
                  • Outlook for interest rates
                    • Figure 2: Interest rate trend and forecast, 2007-10
                  • Outlook for exchange rates
                    • Figure 3: Nominal exchange rates (in relation to the US dollar), 2007-10
                  • Outlook for spending on travel and tourism to 2019
                      • Figure 4: Travel and tourism expenditure worldwide, 2009-19
                  • Hotel Capacity by Region

                      • Figure 5: Number of rooms in hotels and similar establishments worldwide, 2003-08
                      • Figure 6: Hotel capacity worldwide, 2009
                    • Africa
                      • Figure 7: Number of rooms in hotels and similar establishments in selected African countries, 2003-07*
                    • Pipeline
                      • Figure 8: Trend in African hotel pipeline, 2008-09
                    • South Africa
                      • Americas
                        • Caribbean
                          • Figure 9: Number of rooms in hotels and similar establishments in selected Caribbean destinations, 2003-07*
                        • Pipeline
                          • Figure 10: Hotel construction pipeline in selected Caribbean countries, 2008
                        • Central & South America
                          • Figure 11: Number of rooms in hotels and similar establishments in selected Latin American countries, 2003-07*
                        • An acceleration in capacity growth over 2008-11
                          • Construction pipeline down 27% from peak
                            • Argentina
                              • Figure 12: Number of tourist establishments in Argentina, by region, June 2009
                              • Figure 13: Number of rooms in tourist accommodation in Argentina, by region, June 2009
                            • Brazil
                              • Figure 14: Hotels affiliated to the ABIH*, by state, 2007**
                              • Figure 15: Room capacity of hotels affiliated to the ABIH*, by state, ranked by number of rooms, 2007**
                            • North America
                              • Canada
                                  • Figure 16: Canadian hotel capacity/pipeline, by chain-scale segment, June 2008 versus June 2009
                                  • Figure 17: Capacity breakdown/supply and demand trends for quality hotels, by major Canadian city and province, YTD July 2009
                                • Mexico
                                  • Figure 18: Trend in the number of rooms in hotels and similar establishments in Mexico, 2002-07*
                                  • Figure 19: Hotel capacity in Mexico, by grade, 2006*
                                • US
                                  • Figure 20: US hotels volume 2003-08
                                  • Figure 21: US hotel room capacity breakdown, by class, type of hotel and size, 31 December 2008
                                  • Figure 22: Hotel room pipeline in the US broken down, by stage of development, August 2008 versus August 2009
                                • Outlook to 2011
                                  • Growth held back by lack of financing
                                    • Cancellations at a record high
                                      • Pipeline overview
                                        • Figure 23: Supply growth* in the US hotel market, 2006-11
                                      • Asia-Pacific
                                        • Australia
                                          • Figure 24: Trend in Australian hotel capacity, December 2007-June 2009
                                        • China
                                          • Figure 25: Number of rooms in hotels and similar establishments in China, 2002-07*
                                        • Pipeline
                                          • Hong Kong
                                            • Figure 26: Hong Kong hotel room supply, 2008-13
                                          • Macao
                                            • Figure 27: Macao’s hotel capacity, 2008-09
                                          • Japan
                                            • Figure 28: Number of rooms in hotels and similar establishments in Japan, 2003-07*
                                          • Thailand
                                            • Figure 29: Thai hotel and guesthouse capacity, by size, 2006 and 2008
                                          • Other East Asian countries
                                              • Figure 30: Number of rooms in hotels and similar establishments in selected East Asian countries, 2003-07*
                                            • South Asia
                                              • India
                                                • Figure 31: Trend in Indian hotel capacity, 2004-09
                                                • Figure 32: Indian hotels, by grade, 2008
                                                • Figure 33: Existing and proposed new branded hotel room capacity projected to open over the period 2009-13, by major urban market and by market segment
                                              • Pakistan and Sri Lanka
                                                • Figure 34: Number of rooms in hotels and similar establishments in Pakistan and Sri Lanka, 2003-07*
                                              • Europe
                                                • Figure 35: Chain hotel capacity in the 27 EU countries, by star grade, 2008* and 2009*
                                              • Pipeline
                                                • Figure 36: Trend in European hotel pipeline, 2008-09
                                              • Alpine region
                                                • Figure 37: Number of rooms in hotels and similar establishments in Austria and Switzerland, 2003-07*
                                              • Switzerland
                                                • Figure 38: Hotels and health spas according to size of establishment, 2008
                                                • Figure 39: Swiss hotel and cure establishment, by major canton, 2008
                                              • Benelux
                                                • Figure 40: Number of rooms in hotels and similar establishments in Belgium and the Netherlands, 2003-07*
                                              • Eastern Europe
                                                • Figure 41: Number of rooms in hotels and similar establishments in selected Eastern European countries, 2003-07*
                                              • Eastern Mediterranean
                                                • Figure 42: Number of rooms in hotels and similar establishments in Eastern Mediterranean countries, 2003-07*
                                              • France
                                                • Figure 43: French hotels, by grade, location and affiliation at 1 January 2008
                                                • Figure 44: French hotel rooms, by grade, location and affiliation at 1 January 2008
                                              • Germany
                                                • Figure 45: Breakdown of registered lodging capacity in Germany, July 2008
                                              • Italy
                                                • Figure 46: Trend in Italy’s hotel capacity, 2004-07*
                                                • Figure 47: Italian hotel capacity, by grade, 2007*
                                              • Nordic area
                                                • Figure 48: Number of rooms in hotels and similar establishments in Nordic countries, 2003-06*
                                              • Portugal
                                                • Figure 49: Portugal’s hotel capacity, by region and as a proportion of total tourist accommodation, 31 July 2007*
                                              • Spain
                                                • Figure 50: Breakdown of available hotel capacity, by grade, September 2007 and September 2009
                                                • Figure 51: Spanish lodging capacity, by principal region, September 2009
                                              • UK
                                                • Figure 52: Number of hotels and similar establishments in the UK, 2004-09
                                              • London accommodation supply
                                                • Figure 53: London hotel supply change, by grade, 2002-06*
                                              • Middle East
                                                • Figure 54: Number of rooms in hotels and similar establishments in selected Middle Eastern countries, 2003-06*
                                              • Pipeline
                                                • Figure 55: Trend in Middle East hotel pipeline, 2009
                                            • The Top Ten Chains Worldwide

                                                • Figure 56: The ten biggest branded hotel chain management and franchise companies worldwide, 2009
                                              • InterContinental Hotels Group
                                                  • Figure 57: IHG’s different business model characteristics, 2009
                                                • Hotels by region, brand and business model
                                                  • Americas
                                                    • Figure 58: The Americas’ hotel capacity, by business model at end 2008
                                                    • Figure 59: The Americas’ hotel capacity and pipeline, by brand at end 2008
                                                  • Expansion in the Americas
                                                    • Over half the pipeline in the Americas
                                                      • Holiday Inn and Holiday Inn Express
                                                        • Crowne Plaza and Hotel Indigo
                                                          • Extended stay and timeshare
                                                            • Expansion in Brazil
                                                              • Europe, Middle East & Africa
                                                                • Figure 60: Europe, Middle East and Africa hotel capacity, by business model at end 2008
                                                              • Strong growth for Russia
                                                                • Figure 61: Europe, Middle East and Africa hotel capacity and pipeline, by brand at end 2008
                                                              • Asia Pacific
                                                                • Figure 62: Asia-Pacific hotel capacity by business model at end 2008
                                                                • Figure 63: Asia-Pacific hotel capacity and pipeline, by brand at end 2008
                                                              • IHG expansion in India
                                                                • IHG’s Indian partners
                                                                  • Holiday Inn management contracts favoured
                                                                    • Wyndham
                                                                      • Only 26% of EBITDA comes from hotels
                                                                        • Franchise structure
                                                                          • Figure 64: Wyndham Worldwide’s hotel capacity and performance, by geographical region, 31 December 2008
                                                                        • Wyndham’s hotel brands
                                                                          • Wyndham Hotels and Resorts
                                                                            • Days Inns Worldwide
                                                                                • Figure 65: Wyndham Worldwide’s hotel capacity and performance, by brand, 31 December 2008
                                                                                • Figure 66: Competitive landscape for Wyndham’s brands, 2009
                                                                              • Hawthorn Suites repositioned
                                                                                • Ramada expands in Canada
                                                                                  • 20 Ramada Encores planned for South Korea
                                                                                    • Ramada and Days Inn expanding in Japan
                                                                                      • Ramada to be Moldova’s first internationally branded hotel
                                                                                        • Marriott International
                                                                                          • Figure 67: Marriott’s hotel capacity, by brand and business model, 2009
                                                                                        • A halt to timeshare development
                                                                                          • A permanent exit from luxury residence development
                                                                                            • But plans to return to timeshare eventually
                                                                                              • Hilton
                                                                                                • Hilton’s new mid-market extended-stay brand
                                                                                                  • Hilton Garden Inn targeting 60 new hotels in 2009
                                                                                                    • Figure 68: Hilton Garden Inns scheduled to open outside the US in late 2009 and 2010
                                                                                                  • Canada a hotbed of growth
                                                                                                    • Growth through conversions
                                                                                                      • Hilton expanding in South America
                                                                                                        • Hampton brand adapted for local market
                                                                                                          • Current pipeline
                                                                                                            • New deals
                                                                                                              • The Denizen that wasn’t
                                                                                                                • The return of documents triggered the lawsuit
                                                                                                                  • Federal grand jury investigation
                                                                                                                    • Accor
                                                                                                                      • Accor hotel brands
                                                                                                                        • Standardised versus non-standardised
                                                                                                                          • Extended stay
                                                                                                                            • Adagio set to quadruple its room count?
                                                                                                                              • Figure 69: Structure of Accor’s brand portfolio, 2009
                                                                                                                            • Luxury and upscale
                                                                                                                              • Sofitel legend
                                                                                                                                • So by Sofitel
                                                                                                                                  • Pullman guests needn’t bring their laptops
                                                                                                                                    • MGalley, ‘The art of staying’
                                                                                                                                      • Midscale
                                                                                                                                        • Mercure
                                                                                                                                          • Suitehotel
                                                                                                                                            • Economy
                                                                                                                                              • Ibis
                                                                                                                                                • all seasons
                                                                                                                                                  • Etap Hotel, Formule 1 & F1
                                                                                                                                                    • Motel 6
                                                                                                                                                      • A new build prototype for Motel 6
                                                                                                                                                          • Figure 70: Accor’s hotel portfolio, by brand and geographical location, 31 December 2008
                                                                                                                                                        • Accor’s Brazilian partner
                                                                                                                                                          • A strategic partnership
                                                                                                                                                            • Mercure’s Asian expansion
                                                                                                                                                              • Accor’s expansion in Indonesia
                                                                                                                                                                • Accor has big plans for India
                                                                                                                                                                  • Ibis
                                                                                                                                                                    • Novotel
                                                                                                                                                                      • Sofitel
                                                                                                                                                                        • Aerocity
                                                                                                                                                                          • Lavasa
                                                                                                                                                                            • Pullman brand targeted
                                                                                                                                                                              • Expansion plan in Middle East
                                                                                                                                                                                • Accor is reducing its ownership of hotels
                                                                                                                                                                                  • 158 Formule 1s sold
                                                                                                                                                                                    • Figure 71: Hotel portfolio, by ownership structure and brand at 31 December 2008
                                                                                                                                                                                  • Accor to become pure-play hotel company
                                                                                                                                                                                    • Choice Hotels
                                                                                                                                                                                      • Choice brands
                                                                                                                                                                                        • Choice’s US hotel portfolio
                                                                                                                                                                                          • Choice’s CRS generate a third of franchisee room revenues
                                                                                                                                                                                            • Figure 72: Choice’s US franchise system, 2004-08
                                                                                                                                                                                          • 70% of Choice properties are conversions
                                                                                                                                                                                            • Figure 73: Capacity and performance, by Choice brand in the US, 2004-08
                                                                                                                                                                                          • Growth focus by brand
                                                                                                                                                                                            • Figure 74: Growth in Choice properties in the US, by brand and broken down between conversions and new-builds, 2007-08
                                                                                                                                                                                          • International operations
                                                                                                                                                                                            • Only 26,000 loyalty programme members in Europe
                                                                                                                                                                                              • Over 1,000 corporate contracts signed in 2009
                                                                                                                                                                                                • Brands targeted for expansion
                                                                                                                                                                                                  • Choice’s international portfolio
                                                                                                                                                                                                    • Figure 75: Choice’s international franchise system*, 2004-08
                                                                                                                                                                                                    • Figure 76: Choice’s ex-US hotel portfolio, by brand, 2008
                                                                                                                                                                                                  • Starwood Hotels & Resorts
                                                                                                                                                                                                    • St Regis and the Luxury Collection
                                                                                                                                                                                                      • W
                                                                                                                                                                                                        • Westin
                                                                                                                                                                                                          • Le Méridien
                                                                                                                                                                                                            • Sheraton
                                                                                                                                                                                                              • Four Points
                                                                                                                                                                                                                • Figure 77: Distinction between Sheraton and Four points, 2009
                                                                                                                                                                                                              • Aloft
                                                                                                                                                                                                                • Element
                                                                                                                                                                                                                  • Figure 78: Starwood’s lodging capacity, by brand and type, 31 December 2008
                                                                                                                                                                                                                • Half of capacity still in North America
                                                                                                                                                                                                                  • Figure 79: Starwood’s hotel portfolio, by region, 31 December 2008
                                                                                                                                                                                                                • The move to ‘asset-light’
                                                                                                                                                                                                                  • Figure 80: Starwood’s hotel portfolio, by type of business model, 31 December 2008
                                                                                                                                                                                                                • The move to fee-based earnings
                                                                                                                                                                                                                  • Figure 81: Source of Starwood’s EBITDA*, by business model, 2004-08
                                                                                                                                                                                                                • Starwood’s lodging portfolio by brand, region and business model
                                                                                                                                                                                                                  • Figure 82: Starwood’s hotel portfolio, by brand, region and business model, 30 June 2009
                                                                                                                                                                                                                • 90,000 rooms in the pipeline
                                                                                                                                                                                                                  • Starwood signs 50 new deals YTD in 2009
                                                                                                                                                                                                                    • Starwood to double China presence by 2012
                                                                                                                                                                                                                      • Carlson/Rezidor
                                                                                                                                                                                                                        • Carlson’s hotel brands
                                                                                                                                                                                                                          • Radisson
                                                                                                                                                                                                                            • Park Plaza
                                                                                                                                                                                                                              • Country Inns & Suites
                                                                                                                                                                                                                                • Park Inn
                                                                                                                                                                                                                                  • Carlson’s lodging portfolio by brand, region and business model
                                                                                                                                                                                                                                    • Figure 83: Carlson’s hotel portfolio, by brand, region and business model, October 2009
                                                                                                                                                                                                                                  • Carlson signed 23 deals in Q1/2009
                                                                                                                                                                                                                                    • Radisson Blu
                                                                                                                                                                                                                                      • Country Inns & Suites
                                                                                                                                                                                                                                        • Park Inn
                                                                                                                                                                                                                                          • Carlson plans to double China presence in three years
                                                                                                                                                                                                                                            • Second- and third-tier cities in focus
                                                                                                                                                                                                                                              • Rezidor
                                                                                                                                                                                                                                                • Leases and management contracts
                                                                                                                                                                                                                                                  • Figure 84: Rezidor hotels in operation, by region, 30 June 2008/09
                                                                                                                                                                                                                                                  • Figure 85: Rezidor rooms in operation, by region, 30 June 2008/009
                                                                                                                                                                                                                                                • Strong growth even in a recession
                                                                                                                                                                                                                                                  • Figure 86: Rezidor hotels and rooms in development, by brand and region at 30 June 2009
                                                                                                                                                                                                                                                • 11 new contracts signed in Q2/2009
                                                                                                                                                                                                                                                  • Figure 87: Rezidor’s business development, Q2/ & H1/2009
                                                                                                                                                                                                                                                • Hyatt
                                                                                                                                                                                                                                                  • Hyatt’s brand portfolio
                                                                                                                                                                                                                                                    • Park Hyatt
                                                                                                                                                                                                                                                      • Grand Hyatt
                                                                                                                                                                                                                                                        • Hyatt Regency
                                                                                                                                                                                                                                                          • Hyatt Summerfield Suites
                                                                                                                                                                                                                                                            • Hyatt Place
                                                                                                                                                                                                                                                              • Andaz
                                                                                                                                                                                                                                                                • Figure 88: Hyatt’s hotel portfolio, by brand and region, 2009
                                                                                                                                                                                                                                                              • Hyatt also in the timeshare business
                                                                                                                                                                                                                                                                • Hyatt has gone public
                                                                                                                                                                                                                                                                  • Hyatt’s revenue down 19% in first-half 2009
                                                                                                                                                                                                                                                                    • Pritzker family infighting a risk factor?
                                                                                                                                                                                                                                                                      • TUI Hotels & Resorts
                                                                                                                                                                                                                                                                        • Figure 89: TUI Hotels & Resorts portfolio, 31 December 2008
                                                                                                                                                                                                                                                                      • RIU
                                                                                                                                                                                                                                                                        • Classic
                                                                                                                                                                                                                                                                          • ClubHotel
                                                                                                                                                                                                                                                                            • Palace
                                                                                                                                                                                                                                                                              • Luca
                                                                                                                                                                                                                                                                                • 1,000 rooms to open in Cuba
                                                                                                                                                                                                                                                                                  • Grupotel
                                                                                                                                                                                                                                                                                    • Robinson
                                                                                                                                                                                                                                                                                      • Iberotel
                                                                                                                                                                                                                                                                                        • Grecotel
                                                                                                                                                                                                                                                                                          • Magic Life
                                                                                                                                                                                                                                                                                            • Dorfhotels
                                                                                                                                                                                                                                                                                              • Sensimar – TUI’s new hotel concept
                                                                                                                                                                                                                                                                                              • The Ten Biggest Brands Worldwide

                                                                                                                                                                                                                                                                                                  • Figure 90: The ten biggest hotel brands worldwide, ranked by number of rooms, 2009
                                                                                                                                                                                                                                                                                                • Geographical spread
                                                                                                                                                                                                                                                                                                  • Expansion into the BRICs
                                                                                                                                                                                                                                                                                                    • Figure 91: Top ten hotel, ranked by the number of countries in which they are present, 2009
                                                                                                                                                                                                                                                                                                  • The ten biggest consortia worldwide
                                                                                                                                                                                                                                                                                                    • Figure 92: The ten biggest consortia worldwide, end 2008
                                                                                                                                                                                                                                                                                                  • The two major consortia: Utell/Unirez and Best Western
                                                                                                                                                                                                                                                                                                    • Best Western 
                                                                                                                                                                                                                                                                                                      • Best Western Premier
                                                                                                                                                                                                                                                                                                        • Best Western Premier service standards
                                                                                                                                                                                                                                                                                                          • Figure 93: Additional service features required of Best Western Premier hotels, 2009
                                                                                                                                                                                                                                                                                                        • Cheaper than the major chain brands
                                                                                                                                                                                                                                                                                                          • Figure 94: Hotel performance, by region, 2008 versus 2009*
                                                                                                                                                                                                                                                                                                        • Asia Pacific
                                                                                                                                                                                                                                                                                                          • Oversupply in the major urban markets
                                                                                                                                                                                                                                                                                                            • Beijing suffering an Olympic hangover
                                                                                                                                                                                                                                                                                                              • Will the Shanghai 2010 World Expo make a difference?
                                                                                                                                                                                                                                                                                                                • Secondary cities faring better
                                                                                                                                                                                                                                                                                                                  • Figure 95: Hotel performance in Asia Pacific, by selected country and major local market, 2008 versus 2009*
                                                                                                                                                                                                                                                                                                                • Japan doing better than most
                                                                                                                                                                                                                                                                                                                  • Luxury under pressure
                                                                                                                                                                                                                                                                                                                    • Supply has grown in Tokyo
                                                                                                                                                                                                                                                                                                                      • To cut or not to cut
                                                                                                                                                                                                                                                                                                                        • Free upgrades
                                                                                                                                                                                                                                                                                                                          • Beauty classes
                                                                                                                                                                                                                                                                                                                            • But all to no avail
                                                                                                                                                                                                                                                                                                                              • Americas
                                                                                                                                                                                                                                                                                                                                • Figure 96: Hotel performance in the Americas, by selected country/major local market, 2008 versus 2009*
                                                                                                                                                                                                                                                                                                                              • US rates down 17% in H1/2009
                                                                                                                                                                                                                                                                                                                                • Vegas edges out New York
                                                                                                                                                                                                                                                                                                                                  • Europe
                                                                                                                                                                                                                                                                                                                                    • Figure 97: Hotel performance in Europe, by selected country and major local market, 2008 versus 2009*
                                                                                                                                                                                                                                                                                                                                  • Germany outperforming
                                                                                                                                                                                                                                                                                                                                    • Figure 98: Hotel performance, by major German city, 2008 versus 2009*
                                                                                                                                                                                                                                                                                                                                  • Growing leisure trade
                                                                                                                                                                                                                                                                                                                                    • Central & Eastern Europe
                                                                                                                                                                                                                                                                                                                                      • Bratislava
                                                                                                                                                                                                                                                                                                                                        • Bucharest
                                                                                                                                                                                                                                                                                                                                          • Budapest
                                                                                                                                                                                                                                                                                                                                            • Prague
                                                                                                                                                                                                                                                                                                                                              • Vienna
                                                                                                                                                                                                                                                                                                                                                • Warsaw
                                                                                                                                                                                                                                                                                                                                                  • Supply finally catching up with demand in Russia
                                                                                                                                                                                                                                                                                                                                                    • Figure 99: Hotel performance in Moscow and St Petersburg, 2008 versus 2009*
                                                                                                                                                                                                                                                                                                                                                  • Middle East & Africa
                                                                                                                                                                                                                                                                                                                                                    • Figure 100: Hotel performance in Middle East/Africa, by selected country and major local market, 2008 versus 2009*
                                                                                                                                                                                                                                                                                                                                                  • Dubai RevPAR to drop by at least 25%
                                                                                                                                                                                                                                                                                                                                                    • Falling hotel values
                                                                                                                                                                                                                                                                                                                                                      • Hotel values down 50% in the US
                                                                                                                                                                                                                                                                                                                                                        • Hotel values down by between 20% and 60% in Europe
                                                                                                                                                                                                                                                                                                                                                          • ‘Cap rates’ soaring
                                                                                                                                                                                                                                                                                                                                                            • Falling revenues
                                                                                                                                                                                                                                                                                                                                                              • The liquidity squeeze
                                                                                                                                                                                                                                                                                                                                                                • Mostly small deals
                                                                                                                                                                                                                                                                                                                                                                  • Leases, profit guarantees and crashing multiples
                                                                                                                                                                                                                                                                                                                                                                    • Banks have retrenched
                                                                                                                                                                                                                                                                                                                                                                      • Position in the property market
                                                                                                                                                                                                                                                                                                                                                                      • Hotel Chain and Property Management, Restructuring, Mergers and Acquisitions

                                                                                                                                                                                                                                                                                                                                                                        • Financial distress
                                                                                                                                                                                                                                                                                                                                                                          • Three major chains in default
                                                                                                                                                                                                                                                                                                                                                                            • Golden Tulip declares voluntary bankruptcy
                                                                                                                                                                                                                                                                                                                                                                              • Tripped up by lease contracts?
                                                                                                                                                                                                                                                                                                                                                                                • Golden Tulip was a management buyout
                                                                                                                                                                                                                                                                                                                                                                                  • The bankruptcy’s second stage
                                                                                                                                                                                                                                                                                                                                                                                    • Golden Tulip acquired by Starwood Capital
                                                                                                                                                                                                                                                                                                                                                                                      • Golden Tulip complements Starwood Capital’s portfolio
                                                                                                                                                                                                                                                                                                                                                                                        • Looking to the future
                                                                                                                                                                                                                                                                                                                                                                                          • 15% growth is targeted
                                                                                                                                                                                                                                                                                                                                                                                            • Extended Stay Hotels in Chapter 11
                                                                                                                                                                                                                                                                                                                                                                                              • Extended Stay financed by CMBS
                                                                                                                                                                                                                                                                                                                                                                                                • Senior debt holders offered a new package
                                                                                                                                                                                                                                                                                                                                                                                                  • No plans to shrink capacity
                                                                                                                                                                                                                                                                                                                                                                                                    • Red Roof Inn defaults on US$367-million mortgage debt
                                                                                                                                                                                                                                                                                                                                                                                                      • Hotel mortgages jeopardise CMBS ratings in the US
                                                                                                                                                                                                                                                                                                                                                                                                        • 1,060 distressed hotels in the US
                                                                                                                                                                                                                                                                                                                                                                                                          • CMBS contain 5-15% of hotel debt
                                                                                                                                                                                                                                                                                                                                                                                                            • Huge wave of maturities in 2010
                                                                                                                                                                                                                                                                                                                                                                                                              • Lenders do not really want to foreclose
                                                                                                                                                                                                                                                                                                                                                                                                                • Industry close to ‘capitulation’
                                                                                                                                                                                                                                                                                                                                                                                                                  • Defaults up 125% in California
                                                                                                                                                                                                                                                                                                                                                                                                                    • Recently financed hotels particularly vulnerable
                                                                                                                                                                                                                                                                                                                                                                                                                      • St Regis Monarch Beach foreclosed
                                                                                                                                                                                                                                                                                                                                                                                                                        • Bay Area hotels hit hard
                                                                                                                                                                                                                                                                                                                                                                                                                          • US$2.8 billion invested in 2005-07
                                                                                                                                                                                                                                                                                                                                                                                                                            • More defaults to follow
                                                                                                                                                                                                                                                                                                                                                                                                                              • Luxury hotels vulnerable
                                                                                                                                                                                                                                                                                                                                                                                                                                • The vultures are circling
                                                                                                                                                                                                                                                                                                                                                                                                                                  • Bargains are cropping up
                                                                                                                                                                                                                                                                                                                                                                                                                                    • alltours buying hotels
                                                                                                                                                                                                                                                                                                                                                                                                                                      • A global phenomenon?
                                                                                                                                                                                                                                                                                                                                                                                                                                        • Bulgaria – 300 hotels into foreclosure?
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Norway – 25 hotels bankrupt
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Trends in Distribution

                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 101: Breakdown of online reservations, by channel for the overall hotel industry in the US, 2003-10
                                                                                                                                                                                                                                                                                                                                                                                                                                            • Trend in major chain distribution channels
                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 102: Share of bookings, by CRS* channel for 30 major chains worldwide, 2006-09
                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 103: Internet source breakdown for major hotel brands, 2006-09
                                                                                                                                                                                                                                                                                                                                                                                                                                            • The ‘merchant model’
                                                                                                                                                                                                                                                                                                                                                                                                                                              • How does the MM work?
                                                                                                                                                                                                                                                                                                                                                                                                                                                • Inventory management
                                                                                                                                                                                                                                                                                                                                                                                                                                                  • MM conditions
                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 104: Typical merchant model conditions for major online travel agents, 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Is Expedia trying to squeeze hoteliers?
                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Expedia pulled Choice’s inventory
                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Expedia accounts for 3% of Choice bookings
                                                                                                                                                                                                                                                                                                                                                                                                                                                        • ‘Take it or leave it’
                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Choice’s action plan
                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Finally an agreement in the last hour
                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Best Western voices support for Choice
                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Hotels the ‘Golden Goose’ of the OTAs
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Revenue from air travel drying up
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Hotels generate 60% of OTA fees
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Dynamic packaging
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Other revenue sources of minor importance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • The bottom line
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Small groups and independents particularly vulnerable
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Trends in spending by hotels on web-marketing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • The Third Benchmark Survey on Hotel Internet Marketing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Key findings
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Sources of bookings
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Budgeting for hotel Internet marketing in a recession
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • How money spent is correlated to expected return
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 105: Breakdown of Internet marketing expenditure, 2006-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 106: What hoteliers believe are the highest return Internet marketing strategies, 2007-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Outlook for social media
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 107: Web 2.0 initiatives planned for 2009 compared to 2008
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Hotels can tweet too
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Promotion through wacky offers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • A steep discount, but no bed
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • ‘Retweeting’ can spread the word fast
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • A mass communication tool
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Many uses
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Soliciting customer advice
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Follow customers’ opinions in real time
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • @HyattConcierge
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • The bottom line?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Spas and Wellness

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 108: Summary of key hotel spa benchmark ratios, by major region, 2008
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • American spas most efficient
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • 38% of hotel spa visits from non-residents
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Luxury hotel spa trends
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Average prices rose by 25% in 18 months
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Retail doing better, however
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Salon services trending down
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Room rate followed spa revenue trend
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Marriott launches 'mini-treatments'
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • So SPA at Sofitel London St James
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • So SPA at Sofitel Marseille Vieux Port
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Six more openings on the drawing board
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • What Next?

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • A murky outlook for business travel
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Leisure leads the way
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • US RevPAR to grow again only in 2011
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • 2011 RevPAR growth seen at 7.3%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Luxury taking the biggest hit
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 109: Forecasted year-on-year percentage change in RevPAR*, by US hotel chain scale, 2009-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Midscale w/o F & B resisting best
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Will Hilton be broken up?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • More consolidation ahead?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • NH acquires Hesperia

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Companies Covered

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  To learn more about the companies covered in this report please contact us.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  International Hotel Industry - December 2009

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  £1,495.00 (Excl.Tax)