Is the global hotel offer still as good as ever?
Let’s not forget in this critical period that our industry represents 10% of global GDP and nearly 300 million jobs. Overall, the global supply represents around 45 million rooms and the branded supply represents around a third of this volume.
Over the past 6 years, the top 5 hasn’t changed much. With the exception of the leap forward made by OYO, the global ranking of major operating companies is very stable.
The top 3 players, Marriott International, Jin Jiang and Hilton Worldwide each exceed one million rooms.
For the two American leaders, more than half of their growth comes from outside their domestic market. Nevertheless, for Marriott, nearly 950,000 rooms are on North American soil. The number one developed its offer by 11% in 2021 on the very dynamic historical European market. On the other hand, for the Chinese player Jin Jiang, almost 100% of the development of the offer is done on the Chinese market.
The first 3 players have evolved towards a more diversified approach to their products. Marriott, for example, has grown its extended stay offering by 20-25% over the past 5 years.
In the post-pandemic world, resorts seem very attractive to major operators. The latest acquisition of AM Resorts by the American Hyatt Hotel Corporation led to a repositioning of its exposure to the leisure market. From Mexico to the Caribbean zone, via Spain or Greece, increasing from 5% of their portfolio to 16% of their portfolio with a resort offer.
For listed companies, over the last decade, value creation has been mainly achieved through the development of the offer. A closer look at the type of contracts (franchise vs. management) reveals that franchising appears to be the primary driver of supply growth. However, it has become increasingly critical to provide strong added value to investors in the age of estate law. In doing so, the brands remain relevant to these players who have been developing their skills and knowledge of the sector for decades.
Off the podium, 2021 marked good progress for the Chinese group Hua Zhu, which opened nearly 100,000 rooms. However, the creation of value does not necessarily rely solely on the development of the rooms but also on keeping the customer in his ecosystem and on building a strong brand awareness. A strategy that has become the absolute priority of the French number one, Accor, by maximizing the points of contact with its customers throughout the All ecosystem. A transformation that is also based on the diversification of reception. An ecosystem that goes beyond the traditional boundaries of the hotel industry.