MKG Hospitality : 2011 European Hotel Group Rankings
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MKG Hospitality : 2011 European Hotel Group Rankings
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Category: Europe - Industry economy -
Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2011-03-11
Following a year of restructuring forced by the global economic crisis, chain hotel supply growth in Europe
stabilises. Rankings remain rather similar, with Accor the outright leader in the market and Carlson showing
greatest growth.
Latest figures released by MKG Hospitality reveals over 23,000 new chain hotel
rooms in Europe, a growth of 1.6%
“Despite still recording positive growth, this is a slowdown compared to previous years, as there is a lag
in timing. Projects are signed when market condition are good (hotel performances and financing). Since
these conditions were bad during the crisis, fewer projects were signed, consequently impacting stock results in subsequent years – hotel projects normally take around two years to break ground,” explains Direct
of Development, MKG Hospitality, Vanguelis Panayotis.
As expected, most growth in 2011 is in the budget and economy segments, with 3,918 new rooms (or 4.1%
growth) and 7,756 new rooms (3.2% growth), respectively. This is lead by Travelodge’s aggressive expansion of 58 new properties or 11% growth (35 hotels and 3,700 rooms are under construction), on track to
meetings its ambitious goal of 1,100 hotels and 100,000 rooms by 2025. Other significant new stock comes
from Best Western, Etap Hotel, B&B and Premier Inn.
“Chain supply growth is still quite limited compared to the potential that can be achieved here in Europe. At
present chain penetration rate is only 27.2%, compared to say North America’s 71.1%. So we can expect
to see a lot more growth in branded supply,” adds Panayotis.
With almost three times the amount of rooms than its nearest rival, Accor is still the region’s heavy weight
and creeping closer to the 250,000 room milestone. 34 new All Season properties and development of Etap
Hotel helping the group maintain a considerable gap. Meanwhile, greatest movement comes form Carlson
Europe / Rezidor , with 19 new properties and a 10.7% increase in room supply.
Despite recording a 6.8% drop in supply, Group de Louvre remains firm in fourth position. This decrease
was also to be expected following integration of Golden Tulip, which increased stock considerably. German
tour operator TUI balanced its portfolio of leisure hotels, reducing presence in Spain with partners Riu and
Grupotel, while increasing in Greece under its brand Atlantica Hotels. Finally, Whitbread’s growth of its star
chain Premier Inn continues to remain exclusively in its core market the UK.
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