An Overview ofthe European Upscale Hotel

Market

December 2011

Florie THIELIN

Main Hotel Groups and Brands

2

Hotel Groups Ranking

Rank

Group Hotels

Rooms Rooms Growth

2011/2010

1 Accor 2 272 246 665

1,8%

2 Best Western 1 309 89 092 2,4%

3 Intercontinental 545 84 653 0,2%

4 Louvre Hotels Group

942 66 705 -6,8%

5 NH Hoteles 354 51 121 1,2%

6 Carlson / Rezidor 247 49 237 10,7%

7 Sol Melia 204 44 531 -3,1%

8 TUI 164 41 639 4,3%

9 Hilton International

177 41 214 3,8%

10 Whitbread 588 40 975 4,7%

in the European Union at Jan. 1st 2011

Source: MKG Hospitality Database, - February 2011

3

What defines an « upscale » hotel ?

“A true luxury hotel provided extraordinary experiences that exceeded customer expectations and created life-long memories.”

There is still not a unique worldwide rating system which would give a clear definition of which hotel is or is not a luxury one.

The following slides focus on European chain hotels, and will broadly take as upscale :- 5 Star upper-upscale hotels- 4 Star upscale hotels

Source: How do you define a luxury hotel? By Gemma Greenwood www.arabianbusiness.com

4

Rank Hotel Brand Hotels Rooms

1 Best Western 1 309 89 092

4 NH Hoteles 310 44 877

8 Hilton International 138 35 155

11 Radisson Blu 126 27 685

13 Scandic 129 23 533

16 Ramada Hotel 156 19 917

17 Marriott 82 19 829

18 Barcelo Hoteles 73 17 160

22 Melia 67 14 836

23 Sol Hoteles 46 14 854

in the European Union at Jan. 1st 2011 (PART 1)

Upscale Hotel Brands Ranking

Source: MKG Hospitality Database, - February 2011

5

Rank Hotel Brand Hotels Rooms

24 Sheraton 48 13 875

26 Crowne Plaza 63 13 605

29 Park Inn 78 12 676

30 Maritim Hotels 41 11 848

33 Van Der Valk 78 9 761

36 Clarion 66 8 719

41 Golden Tulip-Tulip Inn 88 7 999

42 Intercontinental 24 7 945

45 Le Meridien 25 7 227

48 Pullman 26 6 520

in the European Union at Jan. 1st 2011 (PART 2)

Source: MKG Hospitality Database, - February 2011

Upscale Hotel Brands Ranking

6

Main Hotel Groups andtheir Upscale Brands

AccorBest Western

Carlson Rezidor Groupe du Louvre

Hilton InternationalHyatt

Intercontinental Hotels GroupKempinski

The Leading Hotels of the WorldMandarin Oriental

MarriottMelia

NH Hoteles Scandic

StarwoodWyndham

7

The French Pioneer

The only international French 5 star luxury hotel brand. Sofitel combines the French Elegance with the best of Local Culture.

Deluxe hotels in unique historical buildings

Boutique hotels, design and style in the heart of the city

4 star hotels for the business traveler and events organizers

A collection of upscale character and boutique hotel

8

The American Untraditional Franchise

Stylish designs, personalized guest services and modern amenities distinguish each of this 4 or 5 Star upscale hotel

“Best Western does not offer franchises in the traditional sense (where both franchisee and franchisor are operating for-profit). Instead, Best Western operates as a nonprofit membership association, with each franchisee acting and voting as a member of the association.” (Wikipedia)

9

Full service hotels that combine a stylish and contemporary approach to design with the “Yes I Can!” spirit of hospitality.

Radisson Blu is the name for Radisson Hotels outside United States ( )

A Lasting and Strong Relationship

The American Carlson Companies is the biggest shareholder (50.1%) of the Belgian Rezidor Hotel Group.

10

The Strategic Alliance

5 Star

4 Star

Groupe du Louvre is owned by an affiliate of Starwood Capital (which used to own Starwood Hotels & Resorts until 2000).The luxury division gathers Concorde and Crillon Hotels.The budget division is composed by the Louvre Hotels Group.However, the Louvre Hotels Group is allied since 2009 with the upscale Dutch Golden Tulip Hospitality Group .

11

The Most Recognized Brand

International chain of full-service hotels and resorts founded by Conrad Hilton in 1919, for both business and leisure travel with locations in major city centers, near airports, convention centers, and leisure-oriented hotels in popular vacation destinations around the world.

The following brands are not very developed in Europe yet :

“The Hilton Hotels brand remains one of the company's flagship brands and one of the most powerful and recognizable hotel brands in the world.” (Wikipedia)

12

The following Hyatt brands exist essentially in the USA :

The oldest brand in the company, for both convention/business and leisure travelers, located in urban, suburban, airport, convention and resort destinations around the world.

…

Park Hyatt is Hyatt's luxury brand. Park Hyatt hotels are mid-sized properties located only in premier destinations and cater to affluent individuals.

13

Between upper-upscale and luxury Hotels, located in global gateway cities and premier resort destinations; with “an understanding of each destination” as the core business

This upscale brand is focused on the frequent business traveler with rather an urban or thriving suburban location

IHG is the largest hotels company in the world (by rooms number)

The Worldwide British Leader

14

5 Star luxury “European Style” Hotels

“Kempinski Hotels now owns and runs an international portfolio of 62 hotels. A further 43 hotels are either under final development or construction in Europe, the Middle East, Africa, Asia. Today, Kempinski is majority owned by the Crown Property Bureau of Thailand.” (Wikipedia)

The Grand European Style

15

5 Star luxury/deluxe hotels

The Leading Hotels of the World is a hospitality consortium, which means that it is “an association of companies having the objective of pooling their resources for achieving a common goal”(Wikipedia). Therefore, it is not a hotel chain itself; its member hotels are typically independents, though some are themselves individual properties that are part of chains. Headquartered in New York City, the company maintains offices in 22 cities around the globe. It represents today over 430 hotels and resorts worldwide.

The Luxury Hotel Consortium

16

The First-class Asian Incomer

Very luxury 5 star own distinct personality hotels and resorts combined with the Asian cultural spirit and oriental charm

The Group began with the opening of its flagship property, The Mandarin, in Hong Kong in 1963. The Group acquired then in 1974 a 49% interest in The Oriental, Bangkok. These was the beginning of an international fast growing portfolio. Recently, the Mandarin Oriental just reached one of his objective which was to operate 10 000 rooms all around the world.

17

One of the Best Company to Work for

One of the world's leading luxury lifestyle brands.The hotel company is a subsidiary of Marriott International since 1995.

The following brands are not very developed in Europe yet :

Flagship brand of Marriott

According to the Forbes and The Times

Founded in the USA by J. Willard Marriott, the company is now led by his son J.W. Bill Marriott

18

The Spanish Family Hotel Group

Domestically the company is the market leader in both resort and urban hotels. The Escarrer family continues to control Meliá Hotels, holding a combined stake of over 63% at the end of 2010. Melia changed its name in 2011, it was formerly known as "Sol Meliá“.

The “Premium” or luxury brands include Gran Meliá, Paradisus and ME by Meliá hotels.

The superior or “Upscale” segment includes the Meliá and Innside brands.

19

The Recent Growing Spanish Chain

NH Hoteles (Navarra Hoteles) was founded in 1978 in Spain.But it is really from the year 2000 that it became a major European Hotel Group with many acquisitions including the Dutch Krasnapolsky, German Astron, Mexican Krystal and Italian Jolly Hotels.And in 2009 it merged with the Hesperia Hotel chain, creating the largest urban Spanish hotel group.

NH Hotels are rather midscale, but it seems that in other countries they can be more upscale with 4 Star Hotels (for example The Jolly Hotel Lotti Collection in Paris offers 335€ overnight rate).

20

The Eco-friendly Nordic

“The first hotel in what was later to become the Scandic chain was the Esso Motor Hotel in central Sweden. (…)Since 1994, Scandic profiles itself heavily as an ecologically sustainable business. Employees receive sustainability education and the company offers rooms built in an environmentally friendly way.” (Wikipedia)

3 or 4 star mid to up-scale environmental friendly hotels, operating mostly in scandinavian countries

21

The Upscale American Multi-brand

Starwood's oldest brand and largest upscale hotels and resorts chain

Starwood's 'flagship' brand, providing luxury hotel and resort accommodation

Smaller establishments in converted palaces, significant buildings, or restored historic hotels

Starwood's luxury boutique hotel brand, generally marketed towards a younger crowd

Starwood's main luxury brand

Luxury brand founded by Air France in 1972 and sold to Starwood in 2005

Starwood's most recent brand and first chain of hotels intended to be environmentally friendly

22

…

An upscale full-service brand for both business and leisure travelers

Environmentally friendly version of the Wyndham brand

“The crown jewel of the Wyndham family” a upper-upscale version of the brand

23

SOURCES• www.hospitality-on.com• www.wikipedia.org

• www.accorhotels.com �• www.bestwestern.fr �• www.carlson.com �• www.concorde-hotels.fr �• www.hilton.com �• www.hyatt.com �• www.ichotelsgroup.com �• www.louvrehotels.com �• www.mandarinoriental.com• www.marriott.fr �• www.nh-hotels.com �• www.rezidor.com �• www.scandichotels.com �• www.solmelia.com �• www.starwoodhotels.com �• www.wyndham.com �