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Worldwide Hospitality Ranking 2018: Between acquisitions and divestments, rates are tightening

The 2018 edition of the Worldwide Hospitality Ranking, published by Hospitality ON, provides an overview of the biggest hotel groups’ hierarchy around the world.

In 2018, Marriott International seems unstoppable. With 1,235,512 rooms, the group continued to grow (+5.6% in 2018), choosing stability (+5.5% in 2017) and reaffirming its leadership.

With growth similar to last year (+6.5% in 2018), Hilton Worldwide is consolidating its second place with an offensive development strategy for its hotel portfolio. The strength of its portfolio is reflected with the development of its brands Hampton by Hilton (+14,220 rooms), Garden Inns (+8,652 rooms), Home 2 Suites by Hilton (+7,666 rooms) and the arrival of the Tapestry Collection and Tru by Hilton brands.

Wyndham Hotel Group strengthened its offering with the acquisition of La Quinta, the growth of its Wyndham Hotels & Resorts brand (+4,356 rooms) and its Baymont Inn & Suites franchise (+3,687 rooms) as well as the arrival of the Trademark soft-brand. Despite this strong external growth (+13.9% i.e. 794,572 rooms), the American group did not surpass its British competitor.

 

InterContinental Hotel Group thus maintained its third place in the ranking with an acceleration of its hotel portfolio (+4.0% or 798,075 rooms), essentially due to the growth of its economic Holiday Inn Express offer (+15,389 rooms).

This year, Jin Jiang recorded a capacity increase of +12.9%. Thanks to its expansion in Asia (Vienna Hotels: +41,452 rooms, 7 Days Inns: +24,947 rooms), the takeover of the Indian company Sarovar Hotels (+1,094 rooms) and the voluntary label Hotels & Préférence, the Chinese group has passed the 680,000 room mark.

After a rather moderate growth last year, AccorHotels signs a new dynamic development (+12.5%) with the acquisition of the Australian group Mantra (15 205 rooms) and the Swiss group Mövenpick (96 000 rooms). The French group continues its momentum through equity investments (Banyan Tree and Rixos) and acquisitions of platforms such as Availpro, VeryChic and recently ResDiary. Following the announcement of the agreements concerning the sale of a majority stake in AccorInvest, AccorHotels signs a merger with Huazhu, whose 4.5% stake in the capital will take the form of the purchase of 10.8 million shares.

Choice Hotels International maintained its seventh place and recorded a slight growth (+1.8%) with a progression in each segment: the midscale segment with Quality Inns (+5,117 rooms), the upscale segment with Ascend Collection (+3,506 rooms) and the economy segment with Rodeway Inn (+1,972 rooms).

Last year, the Chinese players recorded significant growth rates, such as Jin Jiang (+8.4%) and BTG Home Inns (+10%). On January 1, 2018, BTG Home Inns maintained its eigth place in the ranking despite a less significant increase (+3.0%) than its counterparts (+13.4% for Huazhu and +12.9% for Jin Jiang).

In 2017, Huazhu acquired Crystal Orange (145 properties or 18,277 rooms) and launched several midscale brands such as HanTing Premium and Manxin, these operations enabling it to reach 350,000 rooms (against 314,788 in 2017).

In addition, Greentree Hotel Management (+13.4%) has shaken the hierarchy by climbing two places in the global operator ranking. In particular, the Chinese group increased its Green Tree Inns (+13,068 rooms) and Shell Hotel (+2,927 rooms) brands.

Best Western continues to see a decrease in its hotel offer. After a negative balance of approximately 8,000 rooms in 2016, the American is stabilizing by losing only -0.6% of its supply. The launch of its new brands Vib, GLo and the SureStay white brand, as well as the acquisition of Sweden Hotels, set the stage for great ambitions for the years to come.

This year, Radisson Hotel Group lost one place and recorded organic growth of 0.6%. Despite the progression of its midscale brand Country Inn & Suites by Radisson (+964 rooms), its umbrella brands Radisson (-29 rooms), Radisson Blu (+412 rooms) and Radisson Red (+437 rooms) do not allow it to face the rise of its Chinese competitors.

Nevertheless, competition continues to strengthen with the moderate growth of Hyatt Hotels Corporation over the past two years (+7.0% in 2017 and +7.0% in 2016) and the future of Whitbread, whose main priority is to focus on the Premier Inn hotel chain after Costa's closure, may change the ranking for the coming years.

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