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International Hotel Industry - September 2011

  • Hilton worldwide has gained share in its home US market and has moved ahead of Wyndham Worldwide in second place, behind InterContinental Hotels Group (IHG), which retains the number one spot in the international rankings.
  • Distribution by diverse electronic means (including global distribution systems, or GDSs, online travel agents, or OTAs, and proprietary websites) continues to grow relative to other channels. Due to the fear of not selling rooms during the recent economic downturn, OTAs gained share of hotel Web bookings, but with the revival in the fortunes of the hotel sector, it is expected that the websites of the major chains will start to back share.
  • Hotel spas have experienced a setback virtually worldwide over the past three years due to the economic crisis. The new trend in promotion is to emphasise people and customer service, as opposed to sophisticated hardware and architecture. Given the difficult time in recent years, there is a move to manage spas as profit centres, like other activities in a hotel, through tracking key performance indicators (KPIs).
  • Africa is shaping up as the new frontier of development for the international chains, as increasing political stability and steady economic growth set the stage for rising demand for quality hotel accommodation.

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Table of contents

  1. Introduction

      • Key findings
        • Definitions and abbreviations
          • Hotel companies
          • Data Sources

            • Overview

                • Inflation is back
                  • Figure 1: Forecasted GDP growth and other economic data by region and major country, June 2011*
                • Outlook for spending on travel and tourism
                  • Figure 2: Travel and tourism expenditure worldwide, 2011-21
                • On the rebound
                  • Downturn in business travel hit hotel sector hard
                    • Figure 3: Real growth in worldwide travel and tourism expenditure (y-o-y % change), 2008-15
                • Hotel Performance by Geography

                    • US Dollar figures flatter performance
                      • Figure 4: Hotel market performance by world region, YTD June 2010 & June 2011
                    • A mixed bag across the Americas
                      • Figure 5: Hotel market performance by country in the Americas, YTD June 2010 & June 2011
                    • Santiago and São Paulo lead the way
                      • Figure 6: Hotel market performance by major city in the Americas, YTD June 2010 & June 2011
                    • Strong rebound in Eastern Europe
                      • Figure 7: Hotel market performance by European country, YTD June 2010 & June 2011
                    • Venice number one
                      • Figure 8: Hotel market performance by major European city, YTD June 2010 & June 2011
                    • Performance boosted by strong currencies in Asia Pacific
                      • Figure 9: Hotel market performance by Asia-Pacific country, YTD June 2010 & June 2011
                    • Strong rebound in Bangkok
                      • Figure 10: Hotel market performance by major Asia-Pacific city, YTD June 2010 & June 2011
                    • Arab Spring taking its toll on Middle East
                      • Figure 11: Hotel market performance Middle Eastern/African country, YTD June 2010 & June 2011
                    • A difficult period for Middle Eastern cities
                      • Figure 12: Hotel market performance major Middle Eastern/African city, YTD June 2010 & June 2011
                  • The Ten Biggest Chains Worldwide

                      • Figure 13: The ten biggest branded hotel chain management and franchise companies worldwide, 1 January 2010 & 2011
                    • InterContinental Hotels Group
                      • A concentrated brand portfolio
                        • Holiday Inn relaunch completed
                          • 1,200 hotels left the chain
                            • A new exterior look
                              • Guestroom upgrades
                                • Customer service training
                                  • Publicising the relaunch
                                    • A big splash in 2010
                                      • Enhanced performance
                                        • Pilot hotel in Pittsburgh has seen benefits
                                          • Social hubs in Holiday Inns
                                            • Portfolio still heavily weighted towards the US
                                              • Asia Pacific more upscale
                                                • Figure 14: IHG’s portfolio by brand and region, 31 March 2011
                                              • Pipeline steady at 30% of existing capacity
                                                • Growth is picking up in EMEA
                                                  • Holiday Inn Express to the forefront
                                                    • No InterContinentals
                                                      • Further expansion in China planned
                                                        • One in four new hotels to be in China
                                                          • Expansion into second- and third-tier cities
                                                            • IHG continues to invest in training and education in China
                                                              • 25 IHG academies
                                                                • Three more to come
                                                                  • A new Chinese brand under development
                                                                    • A deal in India
                                                                      • A 24% stake
                                                                        • Leveraging a small investment
                                                                          • Duet Group a mid-market player
                                                                            • Hilton Worldwide
                                                                                • Figure 15: Hilton’s brand portfolio, March 2011
                                                                              • Geographical spread
                                                                                • Rapid growth planned for Home2 Suites
                                                                                  • Still highly concentrated in US
                                                                                    • Figure 16: Hilton’s worldwide portfolio and pipeline by major country/region, 30 June 2011
                                                                                    • Figure 17: Hilton Worldwide’s geographical spread by major country, March 2011
                                                                                  • Expansion outside the US
                                                                                    • A substantial European pipeline
                                                                                      • Fast-forward in China
                                                                                        • Saudi Arabia targeted
                                                                                          • hiltonrestaurantconcepts.com
                                                                                            • Two options for property owners
                                                                                              • Hilton’s McLean property showcases new design features
                                                                                                • On the lobby bandwagon
                                                                                                  • A revamped registration desk
                                                                                                    • Technology lounge
                                                                                                      • New showers
                                                                                                        • Design plan offers options
                                                                                                          • Hilton launches Huanying
                                                                                                            • Chinese media service also introduced
                                                                                                              • A boost for Blackstone
                                                                                                                • Wyndham Hotel Group
                                                                                                                  • Figure 18: Wyndham’s hotel portfolio by major country/region, 31 December 2010
                                                                                                                • Hotel brands
                                                                                                                  • Wyndham Hotels and Resorts
                                                                                                                    • Wingate by Wyndham
                                                                                                                      • Ramada Worldwide
                                                                                                                        • Baymont Franchise Systems
                                                                                                                          • Days Inns Worldwide
                                                                                                                            • Super 8 Worldwide
                                                                                                                              • Microtel Inns & Suites
                                                                                                                                • Howard Johnson International
                                                                                                                                  • Hawthorn Suites
                                                                                                                                    • Travelodge Hotels
                                                                                                                                      • Knights Franchise Systems
                                                                                                                                        • Figure 19: Wyndham Worldwide’s hotel portfolio, 31 December 2010
                                                                                                                                      • Wyndham acquires TRYP
                                                                                                                                        • 13,000 rooms in key urban markets
                                                                                                                                          • A Tryp by Wyndham in NYC
                                                                                                                                            • A deal with Planet Hollywood
                                                                                                                                              • Originally a restaurant concept
                                                                                                                                                • Wyndham launches Planet Hollywood hotel development
                                                                                                                                                  • Planet Hollywood Hotel Entertainment City
                                                                                                                                                    • Planet Hollywood Hotel Panama City
                                                                                                                                                      • Planet Hollywood Hotel Boao
                                                                                                                                                        • Wyndham enters the boutique segment
                                                                                                                                                          • Chatwal Hotels & Resorts
                                                                                                                                                            • Marriott International
                                                                                                                                                              • The first to ‘split bricks and brains’
                                                                                                                                                                • Figure 20: Marriott’s hotel portfolio by asset management structure, 21 December 2010
                                                                                                                                                              • Management contracts
                                                                                                                                                                • Performance clauses
                                                                                                                                                                  • Management functions
                                                                                                                                                                    • Franchise contracts
                                                                                                                                                                      • Marriott brands
                                                                                                                                                                        • Still heavily concentrated in the US
                                                                                                                                                                          • Figure 21: Marriott’s hotel portfolio by brand, operating structure and location, 31 December 2010
                                                                                                                                                                        • Foray into boutique segment off to rocky start
                                                                                                                                                                          • 100 hotels was original plan
                                                                                                                                                                            • Schrager design and Marriott know-how
                                                                                                                                                                              • Schrager on a new tack
                                                                                                                                                                                • Waikiki owner takes Marriott to court
                                                                                                                                                                                  • Autograph Collection for independent hotels
                                                                                                                                                                                    • Cheaper way into Marriott network
                                                                                                                                                                                      • Growth has not met expectations
                                                                                                                                                                                        • Strategy for Europe
                                                                                                                                                                                          • JV with AC Hotels
                                                                                                                                                                                            • Expansion in India
                                                                                                                                                                                              • Marriott to spin off timeshare
                                                                                                                                                                                                • US$1.5 billion in unsold assets
                                                                                                                                                                                                  • Timeshare revenues have stagnated
                                                                                                                                                                                                    • New company to be franchisee
                                                                                                                                                                                                      • Other hotel groups to follow Marriott’s lead?
                                                                                                                                                                                                        • Accor
                                                                                                                                                                                                          • Figure 22: Accor’s hotel portfolio by brand and region, 31 December 2010
                                                                                                                                                                                                          • Figure 23: Accor’s hotel portfolio by brand and region, 31 December 2010 (continued)
                                                                                                                                                                                                        • Hotel brands
                                                                                                                                                                                                          • Two-tiered branding strategy
                                                                                                                                                                                                            • Luxury and upscale
                                                                                                                                                                                                              • Midscale
                                                                                                                                                                                                                • Economy
                                                                                                                                                                                                                  • Budget
                                                                                                                                                                                                                    • Differentiated asset management structures
                                                                                                                                                                                                                      • Mature market strategy
                                                                                                                                                                                                                        • Emerging market strategy
                                                                                                                                                                                                                          • Figure 24: Accor’s hotel portfolio by brand and asset management structure, 31 December 2010
                                                                                                                                                                                                                          • Figure 25: Accor’s hotel portfolio by brand and asset management structure, 31 December 2010 (continued)
                                                                                                                                                                                                                        • 36% of rooms still owned or under fixed lease
                                                                                                                                                                                                                          • An ‘asset-right’ strategy
                                                                                                                                                                                                                            • Economy hotels offer good returns
                                                                                                                                                                                                                              • Light structures lower risk for chain
                                                                                                                                                                                                                                • Accor sold 171 properties in 2010
                                                                                                                                                                                                                                  • Figure 26: Summary of Accor’s hotel sales during 2010
                                                                                                                                                                                                                                • 49 hotels in sale leaseback deal
                                                                                                                                                                                                                                  • Sofitel Paris Arc de Triomphe to be sold
                                                                                                                                                                                                                                    • Accor continues to pare non-core assets
                                                                                                                                                                                                                                      • Accor sells stake in Lucien Barrière for €268 million
                                                                                                                                                                                                                                        • Accor is selling Lenôtre
                                                                                                                                                                                                                                          • Choice Hotels International
                                                                                                                                                                                                                                            • Choice’s brands
                                                                                                                                                                                                                                              • Comfort Inn
                                                                                                                                                                                                                                                • Comfort Suites
                                                                                                                                                                                                                                                  • Quality
                                                                                                                                                                                                                                                    • Ascend Collection
                                                                                                                                                                                                                                                      • Clarion
                                                                                                                                                                                                                                                        • Sleep Inn
                                                                                                                                                                                                                                                          • MainStay Suites
                                                                                                                                                                                                                                                            • Econo Lodge
                                                                                                                                                                                                                                                              • Rodeway Inn
                                                                                                                                                                                                                                                                • Suburban Extended Stay Hotel
                                                                                                                                                                                                                                                                  • Cambria Suites
                                                                                                                                                                                                                                                                    • Figure 27: Choice’s brand portfolio, pipeline, additions, repositionings, terminations, 31 December 2010
                                                                                                                                                                                                                                                                  • Geographical spread
                                                                                                                                                                                                                                                                    • Two business models
                                                                                                                                                                                                                                                                        • Figure 28: Choice’s ex-US hotel portfolio by country and type of franchise structure, 2011
                                                                                                                                                                                                                                                                      • Franchise agreements
                                                                                                                                                                                                                                                                        • Master franchise terms
                                                                                                                                                                                                                                                                          • Franchise agreements individually negotiated
                                                                                                                                                                                                                                                                            • Figure 29: Quoted franchise fees by brand as of 31 December 2010
                                                                                                                                                                                                                                                                          • Starwood Hotels & Resorts
                                                                                                                                                                                                                                                                            • Hotel brands
                                                                                                                                                                                                                                                                              • Sheraton almost half of capacity
                                                                                                                                                                                                                                                                                • Figure 30: Starwood’s hotel capacity by brand, 31 December 2010
                                                                                                                                                                                                                                                                              • Comparatively little franchising
                                                                                                                                                                                                                                                                                • Figure 31: Starwood’s hotel capacity by asset management structure, 31 December 2010
                                                                                                                                                                                                                                                                              • Geographical spread
                                                                                                                                                                                                                                                                                • Figure 32: Starwood’s hotel portfolio by region, 31 December 2010
                                                                                                                                                                                                                                                                              • Making big play for China
                                                                                                                                                                                                                                                                                • Carlson Hotels Worldwide
                                                                                                                                                                                                                                                                                  • Mainly franchises
                                                                                                                                                                                                                                                                                    • Rezidor
                                                                                                                                                                                                                                                                                      • Carlson’s hotel brands
                                                                                                                                                                                                                                                                                        • Radisson
                                                                                                                                                                                                                                                                                          • Park Plaza
                                                                                                                                                                                                                                                                                            • Country Inns & Suites
                                                                                                                                                                                                                                                                                              • Park Inn
                                                                                                                                                                                                                                                                                                • Carlson’s lodging portfolio and pipeline by brand and region
                                                                                                                                                                                                                                                                                                  • Figure 33: Carlson’s hotel portfolio and pipeline by brand, 31 March 2011
                                                                                                                                                                                                                                                                                                  • Figure 34: Carlson’s hotel portfolio and pipeline by region, 31 March 2011
                                                                                                                                                                                                                                                                                                • Regent sold
                                                                                                                                                                                                                                                                                                  • Expansion in India – Country Inns & Suites and Radisson
                                                                                                                                                                                                                                                                                                    • Adapting the product to the Indian market
                                                                                                                                                                                                                                                                                                      • Five opening in 2011
                                                                                                                                                                                                                                                                                                        • Radisson in India
                                                                                                                                                                                                                                                                                                          • Four new hotel signings in China
                                                                                                                                                                                                                                                                                                            • Carlson’s partnership with LRA Worldwide
                                                                                                                                                                                                                                                                                                              • Carlson debuts new guest loyalty programme
                                                                                                                                                                                                                                                                                                                • An introductory promotion
                                                                                                                                                                                                                                                                                                                  • Partnership with Club Med
                                                                                                                                                                                                                                                                                                                    • Hyatt Hotels Corporation
                                                                                                                                                                                                                                                                                                                      • Moderate growth of portfolio
                                                                                                                                                                                                                                                                                                                        • An asset-light strategy
                                                                                                                                                                                                                                                                                                                          • Figure 35: Hyatt’s hotel portfolio by region and asset management structure, 31 December 2011
                                                                                                                                                                                                                                                                                                                        • Hotel brands
                                                                                                                                                                                                                                                                                                                          • Figure 36: Hyatt’s hotel brands, 31 December 2011
                                                                                                                                                                                                                                                                                                                        • Park Hyatt
                                                                                                                                                                                                                                                                                                                          • Andaz
                                                                                                                                                                                                                                                                                                                            • Grand Hyatt
                                                                                                                                                                                                                                                                                                                              • Hyatt Regency
                                                                                                                                                                                                                                                                                                                                • Hyatt
                                                                                                                                                                                                                                                                                                                                  • Hyatt Summerfield Suites
                                                                                                                                                                                                                                                                                                                                    • Hyatt Place
                                                                                                                                                                                                                                                                                                                                      • Hyatt grows Summerfield with two deals
                                                                                                                                                                                                                                                                                                                                        • LodgeWorks acquisition
                                                                                                                                                                                                                                                                                                                                          • An entrée into new markets
                                                                                                                                                                                                                                                                                                                                            • 16 conversions to Summerfield Suites
                                                                                                                                                                                                                                                                                                                                              • US$80-million JV with Noble
                                                                                                                                                                                                                                                                                                                                                • JV offers access to financing in a difficult environment
                                                                                                                                                                                                                                                                                                                                                  • Home Inns & Hotels Management
                                                                                                                                                                                                                                                                                                                                                    • An IPO on NASDAQ in 2006
                                                                                                                                                                                                                                                                                                                                                      • Capacity trebled in three years
                                                                                                                                                                                                                                                                                                                                                        • Figure 37: Summary of operating data, 2007-10
                                                                                                                                                                                                                                                                                                                                                      • 40 more hotels added in Q1/2011
                                                                                                                                                                                                                                                                                                                                                        • 86 more in Q2/2011
                                                                                                                                                                                                                                                                                                                                                          • Over 1,000 hotels by year-end 2011
                                                                                                                                                                                                                                                                                                                                                            • Shanghai World Expo boosted performance in 2010
                                                                                                                                                                                                                                                                                                                                                              • A standardised format
                                                                                                                                                                                                                                                                                                                                                                • A new midscale brand
                                                                                                                                                                                                                                                                                                                                                                  • Property management and distribution
                                                                                                                                                                                                                                                                                                                                                                    • Customer profile, pricing and distribution channels
                                                                                                                                                                                                                                                                                                                                                                      • A fast-growing frequent-guest scheme
                                                                                                                                                                                                                                                                                                                                                                        • Figure 38: Home Inns bookings by channel, 2010
                                                                                                                                                                                                                                                                                                                                                                      • Home Inns acquires Motel 168
                                                                                                                                                                                                                                                                                                                                                                        • 281 more hotels
                                                                                                                                                                                                                                                                                                                                                                          • Motel 168 brands to be retained
                                                                                                                                                                                                                                                                                                                                                                            • Financing the deal
                                                                                                                                                                                                                                                                                                                                                                              • Improving Motel 168 performance
                                                                                                                                                                                                                                                                                                                                                                              • The Ten Biggest Consortia Worldwide

                                                                                                                                                                                                                                                                                                                                                                                  • Figure 39: The 10 biggest consortia worldwide, year-end 2009
                                                                                                                                                                                                                                                                                                                                                                                • Utell Hotels & Resorts and Utell Connect
                                                                                                                                                                                                                                                                                                                                                                                  • Best Western International
                                                                                                                                                                                                                                                                                                                                                                                    • A non-profit co-operative
                                                                                                                                                                                                                                                                                                                                                                                      • Service standards basic
                                                                                                                                                                                                                                                                                                                                                                                        • Best Western Premier
                                                                                                                                                                                                                                                                                                                                                                                          • Portfolio by region
                                                                                                                                                                                                                                                                                                                                                                                            • Figure 40: Best Western’s portfolio*, 2011
                                                                                                                                                                                                                                                                                                                                                                                          • A cheaper alternative
                                                                                                                                                                                                                                                                                                                                                                                            • More than 40 hotels in Asia and the Middle East pipeline
                                                                                                                                                                                                                                                                                                                                                                                              • A spa concept
                                                                                                                                                                                                                                                                                                                                                                                                • Emerging markets
                                                                                                                                                                                                                                                                                                                                                                                                  • South America, CIS countries and New Zealand
                                                                                                                                                                                                                                                                                                                                                                                                    • Supranational Hotels and Hotusa
                                                                                                                                                                                                                                                                                                                                                                                                      • Great Hotels of the World
                                                                                                                                                                                                                                                                                                                                                                                                        • Keytel International 
                                                                                                                                                                                                                                                                                                                                                                                                          • Preferred Hotel Group
                                                                                                                                                                                                                                                                                                                                                                                                            • Associated Luxury Hotels International
                                                                                                                                                                                                                                                                                                                                                                                                              • Worldhotels
                                                                                                                                                                                                                                                                                                                                                                                                                • Magnuson Hotels
                                                                                                                                                                                                                                                                                                                                                                                                                • Chain Penetration

                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 41: Hotel capacity and estimated chain penetration worldwide by region, 2009
                                                                                                                                                                                                                                                                                                                                                                                                                  • Leading chains in China
                                                                                                                                                                                                                                                                                                                                                                                                                    • Domestic budget operators in lead
                                                                                                                                                                                                                                                                                                                                                                                                                      • Wyndham, the leading foreign chain
                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 42: A list of hotel companies* with at least 10 properties in China, 2011
                                                                                                                                                                                                                                                                                                                                                                                                                      • Penetration in Europe varies greatly by country
                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 43: Hotel capacity and estimated chain penetration by selected country, 2009
                                                                                                                                                                                                                                                                                                                                                                                                                      • Top brands
                                                                                                                                                                                                                                                                                                                                                                                                                        • UK budget brands growing fastest
                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 44: Top 10 brands in the EU-27, 1 January 2010 & 2011
                                                                                                                                                                                                                                                                                                                                                                                                                        • Top brands in the US
                                                                                                                                                                                                                                                                                                                                                                                                                          • Hilton gaining share
                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 45: Top 20 hotel brands in the US (ranked by room count), 2011
                                                                                                                                                                                                                                                                                                                                                                                                                        • Financing, Insolvency, Mergers and Acquisitions

                                                                                                                                                                                                                                                                                                                                                                                                                            • Financing still difficult
                                                                                                                                                                                                                                                                                                                                                                                                                              • Some owners forced to sell or commit more equity
                                                                                                                                                                                                                                                                                                                                                                                                                                • The situation of small hotels is dire
                                                                                                                                                                                                                                                                                                                                                                                                                                  • A wave of refinancing to come
                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 46: Fictive example of bank refinancing, 2007 & 2012
                                                                                                                                                                                                                                                                                                                                                                                                                                  • Conservatively financed institutional deals
                                                                                                                                                                                                                                                                                                                                                                                                                                    • 30-40% equity
                                                                                                                                                                                                                                                                                                                                                                                                                                      • Austrian banks more open
                                                                                                                                                                                                                                                                                                                                                                                                                                        • Slowdown in the CMBS market hits hotel financing
                                                                                                                                                                                                                                                                                                                                                                                                                                          • CMBS investors more cautious
                                                                                                                                                                                                                                                                                                                                                                                                                                            • Strict lending criteria
                                                                                                                                                                                                                                                                                                                                                                                                                                              • New hotels favoured but no financing for development
                                                                                                                                                                                                                                                                                                                                                                                                                                                • Insolvency still a problem
                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Californian hotels on the rocks
                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Defaults minimised by Extended Stay buyout
                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Foreclosures up 91% in Q2/2011
                                                                                                                                                                                                                                                                                                                                                                                                                                                        • The Ritz foreclosed
                                                                                                                                                                                                                                                                                                                                                                                                                                                          • RBS takes over 42 Marriott hotels in UK
                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Properties continue to be operated by Marriott
                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Property to be sold to recover debt
                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Can it get any worse in Ireland?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • One third of Irish hotels in trouble
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Four- and five-star segment hardest hit
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • ADR down by 20%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Four Seasons Dublin sold for a pittance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Swiss hotels could also be in trouble
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Paulson seizes former CNL Hotels
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • CNL was the second-largest hotel REIT
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Deal financing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Von Essen bites the dust
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • A breach of loan covenants
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Too many hotels bought too quickly
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Lack of economics of scale
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Portfolio to be sold off piecemeal
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Halcyon boss in von Essen bid
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Deals are still getting done
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Extended Stay purchased out of bankruptcy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • An effective short sale for Blackstone
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Blackstone, the world’s largest hotelier
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Interstate acquired by Thayer Lodging and Jin Jiang
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Interstate Hotels & Resorts 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 47: Interstate managed and owned hotels by franchised brand, 2011
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Thayer Lodging Group
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Jin Jiang
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 48: Jin Jiang’s total hotel portfolio, including properties under development*, 31 December 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • New World Hospitality acquires the Rosewood brand
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • 19 luxury hotels in eight countries
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • New World purchases five Rosewood properties
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Distribution Trends

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Distribution costs per channel
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 49: Cost of booking for chain and independent hotels by distribution channel, 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Independents rely more on intermediaries
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Recent trend in major chain booking channels
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 50: Breakdown of CRS bookings by channel, major chains, 2006-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Brand sites have lost share
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 51: Breakdown of CRS bookings by Internet channel, major chains, 2006-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Why do hoteliers use the opaque channel?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • A third of rooms booked via electronic channels
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • A sample of 25,000 hotels
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 52: Distribution channel breakdown by hotel grade, 2009-11
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Property direct the main channel
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • OTAs less important than generally believed
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • ... but still cost US hoteliers US$2.5 billion
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • OTAs’ share rose from 1.34% to 7.35% in ten years
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • OTA channel should be broken down
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Two ways of looking at OTAs
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Destination effect
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Google Hotel Finder
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Direct booking or via OTAs
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • 5th Annual Benchmark Survey on Hotel Digital Marketing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Participant profile
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Hotel website revenues
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Digital marketing budgets higher
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Shift to online from offline
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • A changed attitude towards social media
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Importance of mobile Web
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Hotel digital marketing budget breakdown
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Are hoteliers budgeting adequately for this demand?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 53: Breakdown* of hotels’ Internet budget, 2006-11
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Renewed focus on website design
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Where is the ROI?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 54: Internet marketing formats rated by ability to produce the best results and highest ROI*, 2007-11
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Mobile marketing objectives not achieved in 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Mobile still growing exponentially
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 55: Mobile marketing initiatives planned for 2011, 2001-11
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • A decline in planned iPhone apps
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Social media
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Trend towards dedicated social-media personnel
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 56: Type of Web 2.0 and social media marketing initiatives planned for the coming year, 2011*
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Planning for video
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 57: Online video initiatives planned for 2011*
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Overall conclusion
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Flash sale sites are threat
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Multi-channel strategy most effective
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Marketing campaigns should be released simultaneously
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Organic search versus paid search
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Organic search engine optimisation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Linkage through keywords
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Paid search on the rise
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Use of AdWords and PPC advertising
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • How does it work?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Paid search may be cheaper than OTAs
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Social media’s impact on hotel distribution
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • TripAdvisor
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • The problem of fake reviews
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • TripAdvisor tussles with Google
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • TripAdvisor to be spun off
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Facebook
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Impact on revenue management
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • The challenge of flash sales
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Choosing individual rooms now possible
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Room 77
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Hard and soft metrics
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 58: ‘Hard’ and ‘soft’ benchmarking metrics, 2011
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Spas and Wellness

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Overview of US spa sector
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Facilities
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Services and products
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Prices and revenue breakdown
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Client profile
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Is the spa craze over?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • No longer just an amenity but a profit centre
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Average treatment rate
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Treatment room utilisation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Therapist productivity
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Revenue per available treatment room
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Revenue per guest
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Revenue per square foot/square metre
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Spa revenue per occupied room
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Spa sector has held up better in Germanic world
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • No contradiction between quality and ‘medical to go’
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Intangible factors more important
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Hoteliers need to analyse profitability of spa operations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Hotel spa trends and performance in Asia Pacific 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Spa versus hotel performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Spa visits from in-house guests
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Spa KPIs forecasted to improve in 2011
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 59: Hotel and resort spa performance in Asia Pacific, 2008-11
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Tracking KPIs crucial for planning and adapting to market changes
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Six Senses restructures its brand portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • People instead of architecture
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • 14 resorts and 14 spas
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 60: Six Senses spa resorts by brand and country, 2011
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Branded residences
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Starwood’s push into Asia and Middle East
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Shine Spa for Sheraton
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Heavenly Spa by Westin
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Corporate Social Responsibility and Sustainable Development

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Hotels can mitigate their impact
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Green Globe
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Heritage Environmental Certification Programme
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Structure
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • The Green Globe programme
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Membership fees
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 61: Annual Green Globe membership rates* for hotels (consulting and auditing not included), 2011
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • International Tourism Partnership
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • ‘Environmental Management for Hotels’
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • greenhotelier magazine
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • ITP members
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Client attitude
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Men and business travellers most concerned
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Brazilian and Chinese concerns
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Guests apparently prepared to make some concessions
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • What Next?

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • A contracting US pipeline
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 62: US hotel pipeline for July 2011
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Many regions show growth ex-US
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Asia Pacific leads ex-US development
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • London in the lead in Europe
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Soaring growth in Qatar and United Arab Emirates
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • A rebound in Haiti
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Private to public?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • When will Hilton be sold?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Rumours of flotation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Integration of the two Hiltons complete
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Starwood Capital to sell Louvre?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Africa the new frontier?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Steady growth expected in the next few years
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Few hotels of international standard
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • International brands step up the pace across the region
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Accor
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Best Western
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Hilton
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Marriott
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 63: Development pipelines for branded hotel development in sub-Saharan Africa, 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • US$500 million invested in hotels in Nigeria
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • A Golden Tulip opens in Lagos
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • The InterContinental Hotel Lagos and two Radissons
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Index to Travel and Tourism Analyst

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Index grouped by geographic area
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Index to TTI Destination Reports

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Country reports
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Special Reports Index

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Companies Covered

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

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  International Hotel Industry - September 2011

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  US $1,935.88 (Excl.Tax)