Top hotel chains in Europe: double-digit growth for the economy segment

The 2019 ranking of groups in Europe highlighted the rise of Asian players, which were able to develop rapidly through the acquisition of other hotel portfolios. This year's ranking of chains highlights another trend: the growth of economy chains.

Investments to improve in-room comfort and marketing campaigns to promote value, some economy chains have been able to attract their customers and investors... Faced with this new and more welcoming supply, are budget brands able to compete? Have the midscale chains that have faced the rise of Airbnb in city centres succeeded in reinventing themselves? What is the dynamic in Europe’s upscale market?

Find the ranking of the 50 most important hotel chains in Europe in our magazine 280-281

Transition period for budget chains

The budget segment has recently come to the end of an era and is in the process of entering a new one. Thus, hotels on the outskirts of cities, which have not been renovated, are suffering a significant loss of appeal.

Thus, between January 1, 2018 and 2017, the segment lost nearly 1,500 chain rooms in France. The brand hotelF1 chose to sound the death knell by reorganizing its portfolio and divested 27.4% of its fleet. 4,917 rooms are thus leaving its network, some of which will be used for social housing. In 2018, hotelF1 recorded a new dynamic with a fleet that resumed gentle growth (+1.9%). The brand, which now consists of "motels à la française", is working on a new promotional approach and targetng a more leisure oriented clientele. Thus, road trips related to music festivals are offered on its website. This is an opportunity for travellers to discover the company's assets that are under renovation.

Accor also expects to ride the wave of hostels with its brand Jo&Joe, which has opened its first property...