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MKG Hotel Groups World Ranking 2008: IHG towards 600 000 rooms capacity

MKG Hotel Groups World Ranking 2008: IHG towards 600 000 rooms capacity

Category: Worldwide - Industry economy - Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2008-04-09

The Bristish group IHG reinforces its first place on the world Top 10 list, according to the MKG Hospitality database, with a significant increase of its supply of 5.2%. From January 1st 2008, IHG represents 3 949 hotels and 585 094 rooms throughout the world and should reach 600 000 rooms in the near future. Its development pipeline is in good shape with more than 1 600 hotels and 225,000 rooms for the years to come.
- Disposal of Red Roof Inns and launching of several new brands for Accor; the sell of Scandic by Hilton Hotels, the latter being acquired by Blackstone: the past year has been an event full one.
- Best Western stays the world’s first brand despite a decrease of its offer.

No major ranking disruption, repositioning and transfers have limited several groups improvement
The world first 10th group ranking has not changed in 2007. However, the past year, has given to the major groups the occasion to settle their positions on the world scene. With an increasing park of 5.2%, IHG stays on top and reinforces its position by extending the lead on Wyndham Worldwide (+1.4%), despite a sustained growth of its offer with such brands as Days Inn, Super 8 and Ramada. The British group can count on growing markets for its Express by Holiday Inn brand, for the economic segment, and Crowne Plaza for the upper-scale venues in order to quench its thirst. All lights are green for IHG which expects to collect the fruits of its historical brand Holiday Inn revival announced by the end of the year 2007.
In third place, Marriott International (+3.2%) benefits from Courtyard and Residence Inn attractiveness to take its mark against Hilton. The American group, bought by the investment fund Blackstone last summer, is stable (-0.1%). This stability is however relative. In 2007, Hilton, Hotels separated from Scandic, the mi-scale hotel brand leader in Scandinavia. The 20,000 room loss has nearly been overcome by the expansion of mid-scale brands Hampton Inn and Garden Inn outside America.
Still firmly in fifth place, Accor experienced a decrease of its offer (-5.6%). Following its brands orientated strategy, the French group has decided to concentrate on Motel 6 development, whilst separating from Red Roof Inns (326 hotels and 35 238 rooms). The sell of the economic brand explained Accor’s supply contraction as well as the transfer of 40 hotels back to the supervision of Dorint, its former German’s partner. Without totally counterbalancing its losses, Accor has witnessed a significant rise of its Ibis, Mercure and Etap Hotel brands. The launch of Pullman and All Seasons new brands, as well as Sofitel’s repositioning and Novotel and Mercure revitalisation should boost quickly the hotel group expansion.
The progression of franchisor Choice International (+3.7%) demonstrates the good health of both economic and mid-scale segments as Comfort Inn and Quality increase their presence worldwide. A development opportunity that does not apply to Best Western. Even if it is still in first place, the world number one brand seems to reach a new phase of network\'s reduction as it has decided to put the emphasis on quality issues (-2.1%).

While waiting on the arrival of its new brands Aloft and Element, Starwood Hotels group is experiencing a significant development of Westin and Sheraton, thus experiencing an increase of its offer by 3.4%. As for the Carlson Hospitality group, it is reaching 1 000 hotels. A major Rezidor’s shareholder since 2007, Carlson palliates Radisson’s decline by Country Inns and Park Inns good results. Global Hyatt finishes the Top 10 with 1.8% decrease of its offer.
First 20 hotel groups announce 1.1 million rooms by 2015
For the years to come, the major hotel groups have announced tremendous developments. Their projected pipelines, signed our under way, are particularly important:
• The first 20 hotel groups have announced the opening of 8 500 hotels to come with 1.1 million new rooms by the end of 2015, that is a 20% increase of their supply.

Majority of the projects should concern:
Northern America with 1 000 hotels for 400 000 rooms
Pacific Asia with 1 100 hotels for 230 000 rooms
Europe with 1 000 hotels for 180 000 rooms
- South America, 780 hotels for 80 000 rooms
- Africa and Middle East with 250 hotels and 70 000 rooms
As an example, Marriott announces 80 000 rooms, Accor more than 200 000 rooms by 2010, Hilton Hotels forecasts 900 hotels and 120 000 rooms, Choice International goes towards 78 000 rooms and even the Chinese group Jin Jiang has 22 000 new rooms under way.

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