Modified on 11/03 at 17:30
With numerous hotels opening around the world in 2023 and further growth expected in 2024, the world's leading hotel companies are offering business travellers new accommodation solutions around the globe. Focus on the development of each of the major international groups, as well as on the main players in the Chinese hotel industry.
Marriott
Hotels : 8 691. Rooms : 1 574 486.
Growth in 2023 : +4,8%.
With growth in its offering of 4.8%, the Marriott group has enhanced its worldwide portfolio of more than 550 hotels by 2023, a large proportion of which will be international. Particularly in Latin America, where the acquisition of the Mexican group City Express - encompassed under the mid-range brand City Express by Marriott - provides a solid base for accelerating growth across the region. This desire to expand its footprint in this segment has also led to the launch in 2023 of a mid-range brand dedicated to Europe, Four Points Express by Sheraton. Having made its debut in Turkey, in Bursa and soon in Antalya, it is also expected in London. In parallel, on the American market, Marriott has also presented a new "midscale" long-stay brandStudioRes, whose first hotel will open in 2025 in Fort Myers, with hundreds more to come.
However, the leadership of the world's leading group rests above all on its weight in the luxury hotel sector, with a portfolio twice as large as that of its closest rivals. With the addition of 29 establishments by 2023, including Ritz-Carltons, JW Marriotts and W Hotels, its luxury offering topped 600 hotels last year. This lead is unlikely to diminish, as Marriott has also signed 58 new projects. All this in a year 2023 described as " stellar "Marriott's CEO, Anthony Capuano, has been very active on the development front, signing nearly 900 deals across all segments, including a major partnership with MGM casino resorts. In all, 37,000 rooms will be added to Marriott's 'collection' brands, fuelling a robust pipeline of 573,000 rooms in 3,379 hotels. While the world leader expects growth of between +5.5 % and 6.0% in 2024The two million mark is just around the corner.
Hilton
Hotels : 7 438. Rooms : 1 166 828.
Growth in 2023 : +4,8%.
Thanks in particular to the last three months of 2023, the most productive quarter in its history with the addition of 24,000 rooms to its portfolio, the Hilton group has strengthened its position in the world's top three hotel brands. The end of the year saw a number of the American group's brands achieving major milestones with the thousandth hotel for Hilton Garden Inn, the 250th for Tru by Hilton and the 150th for the Curio Collection, driven by the momentum of hotel conversions.
All in all, Hilton opened 395 hotels last year, with a total of 63,000 rooms, i.e. net growth of 4.8%. These include the first steps of Tempo by Hiltona mid-range lifestyle brand that made its debut in New York's Times Square, and a new brand name, Sparkpositioned in the premium economy segment. At the same time, Hilton has in unison with other American hotel groups by launching a new long-stay version, LivSmart Studios, across the Atlantic.
While the American hotel operator can count on its Hilton flagship brand, as well as DoubleTree, Garden Inn and Canopy, to ensure its growth, the group is not in a position to offer its customers the same level of service as its competitors. not yet a heavyweight in the luxury segment compared to Marriott, or even Accor, IHG and Hyatt. But it is working on it, as shown by the numerous development projects for Waldorf Astoria, Conrad and LXR. And, what's more, the recent conclusion of a partnership with Small Luxury Hotelswhose 500 branches should be integrated into its distribution system.
Similarly, while Hilton does not have the luxury and lifestyle equivalent of brands such as W Hotels, Kimpton or Mondrian in its portfolio, Hilton CEO Christopher Nassetta has made no secret of his group's desire to enter this territory. later this year, and I hope sooner rather than later ". Enough to fuel the group's future growth which already has more than 462,000 rooms in its pipeline - nearly half of which are under construction -, with supply expected to grow by between +5.5 % and 6.0% in 2024.
Jin Jiang
Hotels : 12 138. Rooms : 1,152,332 (at 30/09/2023).
Growth in 2023 : +7,0 %.
With its budget and mid-range brands Jin Jiang Inns, 7 Days, Vienna and Lavande, the Chinese group has established itself as the leader in the world's largest hotel market, excluding the United States. A position of choice that the group continues to strengthen year on year. But its footprint extends far beyond the borders of the Middle Kingdom, being also owner of internationally renowned groups such as Radisson and Louvre Hotels. In addition to being one of Accor's 9.6 % shareholders, the two groups have been partners since last year in the implementation of CSR standards and the decarbonisation of the Chinese hotel industry.
Internationally, Jin Jiang is recording the growth of the Radisson group which, although it has sold the operations and franchise activities of its hotels across the Atlantic to Choice in 2022, is concentrating its expansion on Europe, Africa/Middle East, and also India where the group is one of the most represented international players. While Radisson's momentum is maintained by its top-of-the-range brands, such as Radisson Collection on the luxury side and Radisson RED on the lifestyle side, Louvre Hotels expects to see a significant increase in the number of its hotels. breathing new life.
All the more so as the two Jin Jiang subsidiaries are now headed by the same person, Federico J. Gonzalez, who at the end of 2023 presented a five-year strategic planThe Group's strategy is based on the renovation of 80% of its establishments, the definition of new contemporary concepts, particularly for Campanile, and growth concentrated on its three key markets: France, its original home, India and... China. Naturally.
IHG
Hotels : 6 363. Rooms : 946 203.
Growth in 2023 : +3,8%.
A future millionaire. The British group is getting ever closer to this fateful milestone thanks to growth of 3.8% last year, which was largely helped by the integration of the Iberostar resorts. But this growth was mainly driven by its mid-range brands, Holiday Inn in particular, which are affected by two-thirds of the 275 hotels added to its global portfolio last year. This mid-market segment will benefit in the future from the contribution of Garner, a brand dedicated to conversion, launched last September. After opening its first two outlets in the United States, it is expected to open soon in Mexico and Japan.
At a time when hotel conversion is one of the major trends in hotel development, IHG forecasts a potential of 500 Garner hotels over the next ten years. A dynamic that also supports the rapid expansion of the upmarket and contemporary brand. voco since its introduction in 2018. All in all, whether acquired or created in-house, the seven most recent additions to the IHG portfolio offer the Group a real growth driverThis represents 5% of its current offering, but 16% of future projects. This is despite the fact that its well-established brands, such as InterContinental, Hotel Indigo and, of course, Holiday Inn, remain as buoyant as ever.
However, in the future, the balance of IHG's development should tip more towards InterContinental and Hotel Indigo, as well as Kimpton, Regent and Six Senses. Indeed, the share of luxury and lifestyle hotels should increaseThis is reflected in the distribution of IHG's pipeline, where projects in this segment are almost equally divided with those of the mid-range brands. This means a more balanced mix, but also much higher revenues per room, based on a pipeline of more than 2,000 hotels and almost 300,000 rooms in the pipeline.
Wyndham
Hotels : 9 200. Rooms : 871 800.
Growth in 2023 : +3,5 %.
L'Takeover bid by Choice Hotels has not affected the dynamic of the Wyndham group. With the addition of 500 new hotels to its system for a portfolio of 3.5 % in 2023, the group is even signing the best year in its history in terms of organic growth. Among other things, the American franchisor is building on the successful launch of its new long-stay brand Echo SuitesIt is also relying on the renewed appeal of its mid-range brands to further expand its footprint in its original market. We are no doubt waiting for the advent of a new lifestyle brand, for the time being dubbed the 'HQ project', designed in partnership with Sam Nazarian, the founder of the SBE Entertainment group.
However, the future of this heavyweight in the American hotel industry is still very much in the balance. increasingly beyond its borders, as shown by the growth in its offer of 1 % at home, but 7 % internationally. The Group's brands have conquered new markets with the first steps taken by La Quinta in Ecuador, Super 8 in the UK and Hawthorn Suites in China. France is also on the agenda for 2024, with the return of Dolce in the Paris region and a front-row hotel for the forthcoming Paris Olympics, the H4 Hotel Wyndham Paris Pleyelin Saint Denis. With 240,000 rooms in the group's portfolio, what will happen if Choice succeeds in convincing Wyndham's shareholders of the merits of a merger?Editor's note: since this article was written, Choice has abandoned its hostile takeover bidleaving Wyndham to pursue its strategy independently)
H World Group (see box on the Chinese hotel industry)
Accor
Hotels : 5 584. Rooms : 821 518.
Growth in 2023 : +2,4 %.
Development. That's the downside of a record year for the Accor group, according to its chairman Sébastien Bazin at the annual general meeting. presentation of results for 2023 : " Are we a little disappointed by this figure of 2.4%? Yes ". This figure is lower than the competition, and is due in particular to the effects on its portfolio of the PURE programme launched by its new Premium, Mid-range and Economy (PME) division.
In order to strengthen the consistency of its network, the SME division has identified nearly 400 'detractors' hotels, requiring upgrading or, alternatively, leaving the network. As a result, a number of establishments left the Accor family last year, and this is likely to be the case again in 2024. " Churn is likely to be high again this year, but in terms of net growth we will be within the announced range of +3% to +5%There will be many new projects opening in 2024, as well as a large number of signings. "explained Jean-Jacques Morin, CEO of the SME division.
While projects signed by the SME division also represent slightly fewer rooms than before, " the value of expected hotels is 25% higher "said Jean-Jacques Morin. This reflects the desire in Europe to develop more premium Pullman, Moevenpick and Swissôtel hotels than Ibis or Novotel. Given that revenue per room in the SME division is €1,200, compared with €3,800 for the luxury and lifestyle division, the Group's focus on this latter segment can only be profitable given the pace of growth expected. Signatures for Sofitel and MGallery are therefore much higher. than in previous years, while net growth for Ennismore's lifestyle brands is expected to be close to double figures.
Choice
Hotels : 7 527. Rooms : 632 986.
Growth in 2023 : +0,8 %.
Involved in a arm wrestle to take over the Wyndham group as part of hostile takeover bid launched last October, Choice Hotels continues to strengthen its offer. At a slower pace than its American competitor and potential target - +0.8 %, compared with +3.5 % for Wyndham - Choice also has a much lower number of rooms in the pipeline. This may explain the attraction of a merger with Wyndham, especially as it would give Choice greater international exposure.
Even if this does not take place, the American franchisor has strengthened its offer outside its domestic market, with growth of 2.01TP3Q, driven in particular by the programme to refresh its brands in Europe, including Comfort, Quality and Clarion. This strategy has resulted in the signing of a master franchise agreement with the Strawberry group - formerly Nordic Choice - in Scandinavia, a distribution partnership with the Spanish chain Sercotel, and an agreement in France with Zenitude Hotel-Residences, which should enable Choice to double its presence in France. At the same time, the group has continued to grow in the United States, which still accounts for more than three-quarters of its hotels. This expansion is being driven in particular by its Cambria Hotels, Ascend Collection, MainStay Suites and Suburban Studios brands (Editor's note: since this article was written, Choice has abandoned its hostile takeover bidleaving Wyndham to pursue its strategy independently)
BTG Hotels (see box on the Chinese hotel industry)
Hyatt
Hotels : 1 335. Rooms : 322 141.
Growth in 2023 : +5,9 %.
Hyatt reaps the rewards momentum started in 2017Since then, the company's growth has followed a steady path. Since then, growth has followed a faster pace than that of its main competitors. This translates into a further increase in its offer of 5.9% in 2023, while it should be in similar waters this year, between 5.5% and 6%.
Launch of new brands such as Andaz and Unbound Collection, acquisition in 2018 of Two Roads Hospitality and its JdV, Thompson and Alila brands, acquisition of Dream Hotel Group and Apple Leisure, one of the heavyweights in the all-inclusive hotel sectorlast year: all these elements offer the American group a solid base for growth. By 2023, the group has added just over 100 hotels to its offering, with hotel conversions playing a part in this result. At the same time, Hyatt recorded a record number of hotel signings last year, with its pipeline equivalent to 40% of its existing portfolio.
Still one of the leading players in the upmarket and lifestyle hotel sector, Hyatt is also taking a diversion into the mid-range segment with the launch of a new long-stay brand in 2023, Hyatt StudiosHyatt Studios, which should enable the American group to penetrate domestic, secondary or tertiary markets that are less conducive to the establishment of its top-of-the-range brands. With the first hotel due to open in 2025, the group estimates that it already has 200 projects under negotiation for Hyatt Studios. A new growth driver, in addition to all the other hotels to come in the United States, China, Europe and elsewhere.
Best Western Hotels
Hotels : 3 861. Rooms : 322 030.
Growth in 2023 : -6,2 %.
The life of hotel groups based on the affiliation of independent or franchised hotels is like that: more than others, their offer evolves according to a game of regular entries and exits, fluctuating according to new standards which push certain establishments out of the network. The ups and downs of this trend are reflected in Best Western's offering, which is set to shrink by more than 6% by 2023. Nevertheless, particularly in France, growth is still the order of the day, with a good year on year performance, around thirty new establishments. The group also recently announced a number of future projects in Latin America, including Mexico, Brazil and Peru, with some 60,000 new rooms to be added by 2027. More generally, alongside its flagship brand and its Plus and Premier versions, Best Western's development is also being driven by its boutique brand Ayden and Sure Stay in the budget segment.
