Exclusive extracts from this 60-page-long report:
- Who are the key players?
47% of global room capacity is operated by independent hoteliers that are not affiliated to a franchisor or owned by a chain. The world's largest hotel group, Marriott, controls about 7.5% of global capacity. Industry concentration is generally much higher at the national level or when considering a specific market segment, but remains low overall. Industry consolidation and the conversion of independent hotels into established hotel chains top the agendas of most leading hotel groups. [...]
Groups analysed in this report include: Marriott, Hilton, Wyndham, Hyatt, Jin Jiang, Accor, Melia, Shangri-La, IHG and NH Hotels.
- What are the players' strategies?
Much like peers Marriott and Accor, which have spun off their real estate operations, Hilton initiated a major strategic shift in January 2017 with the creation of three entities: Hilton Worldwide, which focuses on hotel management and franchising; Park Hotels and Resorts, which manages real estate operations; Hilton Grand Vacations, which comprises timeshare activities. The group says it will accelerate its effort to expand globally by focusing on fee-generating activities. This asset-light model allows the group to expand its footprint with limited capital expenditure (typically financed by hotel owners). […]
- What are the players' key growth and profitability drivers?
The now independent Wyndham Hotels and Resorts has annual sales of about €1.2bn and total capacity that includes nearly 9,000 hotels and 790,000 rooms across 80 countries. The group has a particularly asset-light business model, with franchised hotels accounting for nearly 99% of its hotel count. It also enjoys good international exposure, with international markets making up a third of total capacity. Since the announcement of the spin-off, Wyndham has been busy acquiring competitors in the US, taking over AmericInn (2017) and, more importantly, La Quinta Holdings (2018). These two acquisitions will considerably boost the group's US market share. The group is also betting on organic growth in the US, with a pipeline of over 60,000 rooms, and in international markets (85,000 rooms, 87% new construction), mostly under franchising contracts with hotel owners and managers […]