Hotel Chains and Brands

Reading a Travel Weekly article the other day, my eye was drawn to reported signs that the hotels sector is back in the mood to expand. The piece went on to outline plans by the International Hotels Group (IHG) to set up a series of new hotel brands in China and the Americas. As well as this being a welcome sign of renewed optimism in the travel industry, it presented, I thought, an opportunity to carry out some analysis of this important sector of the industry.

IHG's plans involve developing high-end hotels in China and a mid-scale brand in the Americas. The article added that IHG's strategy fits in with forecast growth in China, where due to low labour costs a three or four-star hotel brand could be created with a higher level of service than would be expected at that price. It also reflected on other chains' new brand developments. With this in mind, here's a handy guide to the largest hotel chains and their main brands:

Key:

L= Luxury

LB= Luxury Boutique

H= High end

M= Mid-range

E= Economy

B= Budget

ES=Extended Stay

TS= Timeshare

Wyndham Hotel Group, owned by the Wyndham Worldwide group and quoted on the NYSE owns or franchises over 7,000 hotels worldwide including the following brands: Wyndham Hotels and Resorts (H), Ramada (M), Days Inn (M), Super 8 (E), Wingate (M), Baymont Inn and Suites (M), Microtel Inns and Suites (E), Hawthorn Suites (ES), TRYP (M), Howard Johnson (E), Travelodge (B), Knights Inn (B).

Intercontinental Hotels Group (IHG) publicly quoted on NYSE and FTSE 100, owns Intercontinental Hotels and Resorts (L), Crowne Plaza (H), Hotel Indigo (LB), Holiday Inn (M), Express by Holiday Inn (E) and Candlewood Suites (ES). The group has over 4,200 hotels worldwide either franchised, managed or owned.

Accor, a French multinational quoted on the CAC-40 Paris stock exchange, operates or manages over 4,000 hotels worldwide including the following brands: Sofitel (L), Pullman (H), Novotel (M), Mercure (M), MGallery (LB), Ibis (E), All Seasons (E), Formule 1 (B), Etap (B), Motel 6 (B), Suitehotel (M).

Hilton owned by Blackstone Group private equity firm, at November 2010 franchised or managed over 3,600 hotels in 82 countries including the following brands: Conrad (L). Waldorf (L), Hilton Hotels and Resort (H), Embassy (H), Hampton Inn (M).

Marriott publicly quoted on NYSE, operates and franchises 3,200 lodging properties worldwide including JW Marriott (L), Renaissance (L), Edition (LB), Autograph (H), Courtyard (H), Residence Inn (ES), TownePlace Suites (ES), Marriott Vacation Club (TS).

Starwood owns, manages or franchises nearly 1,000 properties worldwide. Its brands include Westin (H), Sheraton (L), Four Points (M), The Luxury Collection (L), W (LB), St Regis (L), Le Meridien (M), Aloft (M), Element (LB).

This is an interesting listing, revealing the major chains' coverage of the major segments of the hotel market. It also shows where certain chains are absent from certain segments. Why do you think this could be? Perhaps it could be because of a strategic decision not to be active in some segments, perhaps the budget end of the market. Or, there could be other reasons. One of these - the impact of legal action - will be the subject of tomorrow's blog. In the meantime, you could analyse some of these hotel chains a little further. Use Biz/ed's Major Companies resource to investigate the activities of IHG and Accor a little further.