Tag: brands

Briefing: Independent hotels find platforms for growth

Posted on by Guy Lean

Independent hotels have more access to technology and distribution channels than ever before. Could this help them compete with the groups?

According to a report from PWC; ‘about 40-60% of Europe’s hotels are currently estimated branded’. There are more unbranded hotels in rural areas than in cities and airports. The report also states that branded hotels across Europe are set to increase.

So how can independent hotels keep growing? Our experts discuss:

There is a mix of, technology companies, OTAs, and hospitality companies offering services for independents. These include: TripAdvisor, WorldHotels, and ChoiceHotels as above. Plus Umi Digital, AccorHotels, Sabre, TravelClick, and more.

This is a big market to tap. Almost 40% of the UK hotel market is independent hotels, according to a report from STR global. In August last year independent hotels in the UK had a better ADR than branded hotels, at £119 compared to £79. STR’s report indicates that this is largely due to the tendency for independent hotels to be a classed as upscale or luxury, whilst there is a strong economy hotel segment of branded hotels. The report also found that occupancy in branded hotels last year was 4% better than independents (73% vs 77%).

Upscale boutiques are in demand in America. According to a report from The Highland Group, the boutique hotel industry in the US is growing at a 3.1% annual pace and demand is growing at 6.7%. The report classes boutique hotels as ‘independent or part of small brands’ with ‘40 to 300 guest rooms’ and ‘generally upscale to luxury’.

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Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Major brands increase presence in Africa

Posted on by Guy Lean

The number of branded hotels in the African market is set to increase. According to a report from W Hospitality Group, Carlson Rezidor’s Radisson Blu brand has the most hotels in the pipeline (22 units), Hilton has 16 units, and Marriott has 11 units in the pipeline. Historically in Africa, financial and security constraints have often meant that projects in development are halted before they come to life. Despite this, there are clear intentions from major brands to enter new regions across Africa.

In this briefing hospitality industry executives discuss the hospitality market in Africa:

A special Market Report on Central Africa from Horwath HTL also states that, ‘more diversified global brands plan to enter the market’. According to the report 2,900 rooms are in the pipeline in Central Africa. This report also found that there has been an increase in business travel in this region.

Radisson Blu’s latest development is a hotel in N’Djamena, Chad. It will have 171 rooms, a health club, and conference facilities, and is due to open later this year.

Last month Hilton Worldwide announced an agreement to open its first hotel in Swaziland. The new hotel will be a Hilton Garden Inn and will be located in Mbabane. It will have 130 rooms and a dedicated event space.

Marriott International has plans to increase its presence in Africa. By 2020 it aims to have 150 properties with 19,000 rooms across 17 markets.

Current projections from the IMF’s World Economic Outlook say that GDP in Sub-Saharan Africa will be 4.4 this year, and in Nigeria will be 1.5. This indicates a slow-down in growth.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do so here. It’s free.

Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Understanding brand power in a new landscape

Posted on by Guy Lean

What does it mean to be a hospitality brand in 2015? Travellers today will not be as influenced by a brand name as they once were when booking accommodation. According to Mintel Group, 48% of guests will not visit the hotel’s website before arrival, and 79% see price as a key factor when choosing a hotel. However strong brands in the industry are still growing.

These videos look at the way new brands are developing, how powerful brands are staying relevant, and what might happen with brands in the future:

In todays’ hospitality landscape technology has changed distribution forever, given independents more power and has sparked the emergence of new brands.

There is some debate over the possible consolidation of brands in the future as discussed in the above videos.  At the moment more and more brands are being created, often within existing brands, to serve new markets.

In other industries the power of the brand is still immensely strong particularly in the technology industry. Apple currently tops Forbes list of The World’s most Valuable Brands, with a brand value of $145.3 Billion. Microsoft, Google and Coca-Cola and IBM make up the rest of the top 5.

The MKG group’s Hospitality database shows that in January 2015, IGH was the top ranked Hotel Brand. It had 710 295 rooms and a growth of 3.4% on 2014. Hilton and Marriot were ranked 2nd and 3rd and showed growth of 5.4% and 5.9% respectively.

A survey from BDRC found that 42% of European leisure travellers rate review sites as important when selecting a hotel for leisure. In comparison 36% rate hotel brands and important. BDRC also found that leading brands can still command a higher price than unknown brands, with an uplift of €26.98 in the luxury market.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do so here. It’s free.

Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Digital age guests want connectivity as standard

Posted on by Guy Lean

We live in a world of consumerised, mobile technology where guests increasingly use the latest gadgets at home and on the move. When guests check in to a hotel they do not stop wanting this level of connectivity. The hotel industry is upping its game, embracing technology as a part of the hotel’s design, infrastructure, and service processes. With increased expectations of hotels and ‘basics’ redefined, brands must find ways to provide “next level” digital experiences for their guests. In this briefing we hear comment from:

  • Anton Bawab, Regional President, Viceroy Hotel Group on connective technology being a must have for hotels

  • Jim Abrahamson, Chief Executive Officer, Interstate Hotels & Resorts on why brands that give great experiences will succeed in the digital world

  • Kathleen Matthews, Chief Communications & Public Affairs Officer, Marriott International Inc on customers wanting connectivity and rich experiences

  • Robert Shepherd, Chief Development Officer – Europe, InterContinental Hotels Group on innovative hotel designs that target modern business travellers

 

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

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