Hotel Online  Special Report
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The Top 10 Hotel Chains and the Top 10 Hotel Brands
in the European Union

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Paris, 6th February 2006
  • Hotel chains are waging a fierce war behind accor, the french leader unchallenged in europe
  • Investment funds get in the game with considerable resources.
  • Five chains post an annual growth rate of more than 4 000 rooms.
  • With more than 4 000 additional rooms in 2005, the French giant Accor remains the leader of the European hotel industry.
  • With the take over of Meridien, Starwood Hotels & Resorts joins the Top 10 of European Union hotel chains.
In preview of the detailed results of the European hotel industry, which is carried out every year by MKG Consulting and published in the February/ March edition of HTR, here is the ranking list of the first 10 chains and the first 10 brands among the 140 chains and the 200 brands established in the European Union.
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Annual European classification of hotel chains (on 01/01/2006)

25 European Union member countries


Hotels
Rooms
Evolution
Rank

2005

Rank

2006

Group
Countries
2005
2006
2005
2006
Rooms
%
1
1
Accor
F
2 159
2 197
235 205
239 279
4 074
1,7%
2
2
Best Western
USA
1 123
1 195
73 234
78 140
4 906
6,7%
3
3
ICH Group
GB
470
498
72 381
76 794
4 413
6,1%
4
4
Louvre Hotels
F
862
849
60 607
59 052
-1 555
-2,6%
5
5
Hilton International
GB
254
242
54 411
53 210
-1 201
-2,2%
6
6
Sol Melia
ESP
208
209
42 419
42 620
201
0,5%
7
7
Tui
ALL
166
170
40 093
41 508
1 415
3,5%
8
8
Choice
USA
404
414
34 800
36 093
1 293
3,7%
9
9
Carlson / Rezidor / Park Plaza International
USA
158
184
30 586
35 352
4 766
15,6%
13
10
Starwood Hotels & Resorts
USA
101
144
22 856
33 096
10 240
44,8%
TOTAL 10 Groups
5 905
6 102
666 592
695 144
28 552
4,3%
Source : MKG Consulting database – 02/2006

* Rezidor: Radisson SAS, Country Inn, Park Inn, Regent, - Park Plaza International: Park Plaza - Radisson Edwardian


2005 intensifies the trend initiated last year: hotel groups that are established in Europe accelerate their development again. With the consolidation of the demand growth, and the arrival of investment funds that have considerable resources, the European hotel industry could be located in a new cycle of supply growth. The first 10 groups of last year’s classification totaled a progression of 0,5% representing a volume of 3 650 rooms. This year the growth of the 10 leaders in the hotel industry of the European Union reaches 4,3% (28 552 rooms). A majority of the actors that are part of the top 10 ranking in hotel groups and top 10 hotel brands see their supply increase in a clear way during the year 2005.

With the integration of the Meridien brand, Starwood Hotels and Resorts joins the Top 10 of European hotel groups.

One of the major events of the year was undoubtedly the realization of the take over of Le Meridien by Starwood Hotels and Resorts. This take over allows the american group to make a remarkable entry in the Top 10 of hotel chains that are established in Europe. In the European Union, the supply of the chain increases by more than 10 000 rooms in one year!

Four of the hotel chains post increases of more than 4 000 rooms in their hotel supply.

Accor reinforces its position of unchallenged leader on the continent due to a 1,7% increase of its supply  hence a volume of more than 4000 rooms and 38 additional hotels. On the Super-economic hotel segment, the development of Formule 1 is definitely put on stand by whereas the group privileges Etap Hotel that takes an increasingly important place in the European hotel industry landscape. Ibis and Mercure strengthen their position as second and third brands in the ranking. Accor places this year again 5 of its brands in the Top 10. The French group still regroups more than three times the numbers of establishments than its follower, Best Western.

As such Best Western remains the second group in Europe and also records a clear progression in 2005 (4 900 rooms). The result of the american franchisor appears to come from a recovery of the extension of the Best Western network after several years of reduction of its consecutive supply to the implementation of a strategy of "cleaning" its supply (skimming of the units that do not correspond to the brand’s ambitions).

Another European Giant, InterContinental Hotels Group also ensures its development and sees its supply grow by 6,7% in 2005. Holiday Inn benefits in particular from the recovery of new franchise contracts from ex Queen Moat Houses establishments in the United Kingdom. This brand has restarted its growth after the shrinkage of its supply.

Another brand of the chain to have favorable winds, Express by Holiday Inn demonstrates the vitality of the budget segment on the other side of the channel. As such Premier Travel Inn, the budget brand of the Whitbread group has seen its supply pursue its growth by 28 units.

Another chain that is amongst the most dynamic in Europe, Carlson has acquired 25% of the shares of its master European franchisor Rezidor. A pledge of confidence in the future developments of the brands of the chain, in particular Radisson SAS and Park Inn.  From one year to another, it is thus nearly 5 000 additional rooms which carry one of the brands of the Carlson group.

Behind these remarkable progressions, the supply evolution of the German specialist in leisure hotels TUI or of the American franchisor Choice are not as strong but nevertheless represent a volume of more than 1 000 rooms. In both cases, the observed growth in 2005 is a follow up of the previous year in the reduction of the hotel supply of each one of these groups.

Sol Melia proposes a relatively stable supply from one year to another, counterbalancing the abandonment of the management of under-performing establishments with the signature of multiple franchise contracts in its domestic market.

Lastly, this year 2005 will also have been remembered by the purchase of the Louvre hotels by the investment firm Starwood Capital. The brands of the French group, Première Classe, Campanile and Kyriad, have an especially well established position in France. The slight decline of the group this year is resulting from the loss of several affiliates of the luxury Concorde brand. Furthermore, Starwood capital projects to develop a new luxury hotel network, whose name, Crillon Hotels, takes on the name of the most famous establishment of the Concorde network.

After the period of slowdown that the industry has known these last years, two trends appear to emerge from the results of the year 2005:

  • First the hotel chains and generally american investment funds are trying to win market shares on the European market that remains very attractive.
  • Second trend: the European heavy weights, Accor and InterContinental Hotels Group, are also very dynamic. With growths of their supply of more than 4 000 rooms, these two groups maintain their position on these very coveted European markets.
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Annual European classification of hotel brands (on 01/01/2006)

25 European Union member countries


Hotels
Rooms
Evolution
Rank

2005

Rank

2006

Brand
Group
2005
2006
2005
2006
Rooms
%
1
1
Best Western
Best Western
1 123
1 195
73 234
78 140
4 906
6,7%
2
2
Ibis
Accor
598
616
61 993
63 759
1 766
2,8%
3
3
Mercure
Accor
514
545
60 157
61 757
1 600
2,7%
4
4
Novotel
Accor
279
274
44 084
43 270
-814
-1,8%
5
5
Holiday Inn
ICH Group
268
280
41 378
43 195
1 817
4,4%
6
6
Hilton
Hilton Int’
131
128
32 911
33 113
202
0,6%
8
7
Nh Hotels
Nh Hotels
201
220
28 137
30 819
2 682
9,5%
7
8
Premier Travel Inn
Whitbread
435
463
26 728
29 000
2 272
8,5%
9
9
Etap Hotel
Accor
307
326
24 426
26 320
1 894
7,8%
10
10
Formule 1
Accor
326
326
24 067
24 083
16
0,1%
TOTAL 10 GROUPS
4 182
4 373
417 115
433 456
16 341
3,9%
Source : MKG Consulting Database – 01/06

* Mercure Network : incl. Libertel, Orbis, Parthenon



MKG Consulting is the leader in consulting for the Hotel, Tourism and Catering sector, and has the largest hotel database in the world outside the USA, with a good representation of all the hotel segments. MKG database’s monthly program is based on a sample of 10 000 corporate chain hotels, representing 1 000 000 rooms. 

Since September 2004, the MKG Consulting database proposes a program that allows the daily monitoring of activity indicators for each hotel. This program counts 1 500 hotels and 125 000 rooms in France which makes it the most developed daily program in Europe. 

 

 

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Contact:

Georges Panayotis
+ 33 (0)1 56 56 87 90
georges.panayotis@mkg-group.com

Also See: Ranking - Top Ten Worldwide Hotel Chains Growth 1995-2005 / October 2005
World Leisure Destinations Experiencing Rising Occupancy Rates Almost Everywhere / February 2006
The Riots in the French Suburbs: A Limited Impact on Hotel Activity / November 2005

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