UK hotel brand listing 2014
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1 UK hotel brand listing 2014 A comprehensive review and listing of branded hotels in the UK, comprising an analysis in pdf format and a listing of all the branded hotels including name, address and other contact details in Excel format.
2 Contents All enquiries t +44 (0) Editorial director Andrew Sangster e andrew@hotelanalyst.co.uk Marketing Sarah Sangster e sarah@hotelanalyst.co.uk Subscriptions Anna Drabicka e anna@hotelanalyst.co.uk Design Lynda Sangster e l.sangster@langsford.co.uk Introduction 1 Top 20 companies table 2 Top 30 brands table 3 Market moves Top 20 companies recent activity 5 News round-up 8 Accor Britannia Choice De Vere GLH Hilton Worldwide InterContinental Hotels Group Jurys Inn Marriott International Millennium & Copthorne Puma Hotels QHotels Rezidor Hotel Company Travelodge Whitbread Wyndham Hotel Group Branded hotel listing spreadsheet (separate attachment) ZeroTwoZero Communications 2015 IMPORTANT Unless otherwise attributed, all material in this publication is the copyright of ZeroTwoZero Communications. Subscribers are reminded that the publication is circulated to named individuals only, on the understanding that material contained herein is not copied, reproduced, stored in a retrieval system or otherwise disseminated, whether inside or outside subscribers organisations, without the express consent of the authors or publisher. Breach of this condition will void the subscription and may render the subscriber liable to further proceedings. Hotel Analyst is published by ZeroTwoZero Communications Ltd PO Box 1228, Cambridge CB1 0WS t +44 (0) f +44 (0) e info@zerotwozero.co.uk w This is copyright material. Strictly no photocopying or scanning including sharing within your organisation
3 Introduction The 2014 UK Hotel Brand Listing will, as last year, provide you with a valuable insight into the British hotel market. Building on the inaugural listing in 2013, this year s edition not only provides rankings of absolute market position, it also demonstrates those brands that are making progress, and those that are slipping in influence in the UK hospitality sector. The last year has seen a substantial volume of deal transactions in the UK hotels market, as major property portfolios changed hands, and banks sold off distressed loans and their holdings. Lloyds achieved the disposal of all the parts of the De Vere portfolio, while property investor Topland joined US private equity investors in taking a major stake in the UK hotel marketplace, buying the Menzies and Hallmark chains. Major tranches of Holiday Inn and Travelodge hotels changed hands, too What is remarkable about this activity is that, to the consumer, so little has changed. The buyers of standing hotel chains have, for the most part, continued to trade them under their existing brands. Starwood Capital, which purchased Principal Hayley, then De Vere Venues, and Four Pillars hotels, has to date continued to run all three with their existing brands; though they do share a web presence and are cross-sold. Private equity buyer KSL continues to run Malmaison and Hotel du Vin unchanged, and has recently added the Urban Village chain to its portfolio. Topland has maintained the Menzies and Hallmark brands. Although a major portfolio of Holiday Inn properties changed hands in the summer, with the option of rebranding, buyer Kew Green - itself a manager of many such hotels already - decided to retain the connection with IHG. The few changes that have been seen include the renaming of the Puma chain to The Hotel Collection; with four of the chain s 21 properties placed up for sale in late 2014, it appears further change is upcoming. And Sankaty, purchaser of the De Vere country hotels and lodges, has placed them under the management of its other purchase, Qhotels, with a rebranding in progress. The last year has seen many hotel groups enjoying an uplift in performance. While London has continued to enjoy the boost initiated by the 2012 Olympics, it was only in 2014 that provincial hotels have started to see occupancy and room rates start to improve. Many will now be bringing forward refurbishment plans, or undertaking improvements that were planned, but for which there was no budget in tougher times. By Chris Bown, December 2014 This is copyright material. Strictly no photocopying or scanning including sharing within your organisation UK hotel brand listing
4 Top 20 companies Ranked by room number Rank Company Rooms Hotels 1 Whitbread IHG Travelodge Accor Hilton Marriott Rezidor Britannia GLH Wyndham Starwood Cap Jurys KSL Macdonald Millennium & Copthorne Qhotels WA Shearing Bespoke Imperial London The Hotel Collection Major players in the UK hotel market have maintained their positions at the top of the table, with international brands such as Accor and Hilton adding modestly to their British portfolios through the year. Wyndham has lost ground, while Jurys also saw three of their properties migrate to Hilton. New arrivals in the table are private equity owners Starwood Capital and KSL, part of the new breed of hotel business owners. Of the privately held companies, Britannia has continued to grow its portfolio, opportunistically bidding for individual properties as they come to market. Who owns which hotel brands in the UK? Accor owns: Choice owns: GLH owns: Hilton owns: Hyatt owns: InterContinental Hotels (IHG) owns: KSL owns: Marriott owns: Millennium owns: Rezidor owns: Sankaty Advisors owns: Starwood Capital owns: Topland owns: Wyndham owns: Whitbread owns: Ibis, Ibis Styles, Ibis Budget, Formule 1, Sofitel, Mgallery, Mercure, Novotel Ascend, Quality, Clarion Collection, Comfort Inn Guoman, Thistle, plus upcoming launched brands Clermont, Amba and Every Hilton, DoubleTree, Hampton, Hilton Garden Inn Andaz, Hyatt Regency Holiday Inn, Holiday Inn Express, Crowne Plaza, InterContinental, Holiday Inn Garden Court Hotel du Vin, Malmaison, Urban Village Marriott, Renaissance, JW Marriott, Courtyard, Autograph Millennium, Copthorne Park Inn, Radisson Blu, Radisson Edwardian Qhotels De Vere Venues, Principal Hayley Hallmark, Menzies Days Inn, Ramada Plaza, Ramada Encore, Ramada Premier Inn, Hub 2 UK hotel brand listing 2014 This is copyright material. Strictly no photocopying or scanning including sharing within your organisation
5 Top 20 companies recent activity Whitbread Premier Inn Whitbread continues to grow its market presence in the UK with Premier Inn. The company has used TV advertising during 2014 to grow the brand s strength, and uses substantial online promotion to drive the majority of its bookings through its own website. Throughout 2014, the company has delivered quarter on quarter improvements in its occupancy levels, now averaging over 80% across the portfolio. The company has continued to focus on expanding its portfolio in London, where the strength of demand has seen it lift its maximum nightly price ceiling. It has just launched the first of its compact Hub properties, designed around a smaller room footplate for more expensive urban sites. Hub also aims to deploy the latest technology for guests including smartphone apps to control guest rooms. The company has committed to continued growth in the UK market, having identified scores of underserved sub-markets across the country. It has also announced it will be expanding into Germany, as well as testing markets in the Middle East and Asia. IHG InterContinental Hotel Group has sold some of its last property assets in the last year, as it completes its move to an assetlight hotel operator. Having sold the InterContinental Park Lane in 2013, the company sold a majority stake in the New York Continental during In the UK, the company opened a second London InterContinental but during 2014 lost this hotel to Hilton, for a conversion to that group s luxury Conrad brand. It has seen tranches of its Holiday Inn properties sold during the year, but they have retained their existing branding. There has also been a consolidation of agreements with management companies, placing greater numbers of properties with management groups such as Kew Green and Redefine BDL. The company continues to expand its Holiday Inn Express brand family in the UK, adding new properties to an already strong brand presence. Travelodge Travelodge has spent 2014 completing a portfolio-wide refresh of its rooms, following the earlier corporate restructuring. There has been a TV advertising campaign to reconnect with consumers. Having divested itself of a number of weaker hotels from the portfolio, during the restructuring process, the company has returned to growth with a number of new openings. The company is typically leasing new hotels, and finding owners happy to purchase their properties with the backing of an index-linked rent. During the year, owners GoldenTree Asset Management, Avenue Capital Group and Goldman Sachs bought a GBP500m package of 144 Travelodge hotels, brought to the market by an ownership consortium of property companies. Accor French stock market listed Accor made a major strategic shift during the last year, deciding it would start reinvesting in hotel properties. This has not, however, impacted on its UK business as to date the company has concentrated on buying property assets in France. During 2014, the company has continued to add to its Ibis economy brand and to its Novotel portfolio. Midmarket conversion brand Mercure has seen no further growth, while its luxury Sofitel brand is restricted to city centre and airport sites. This is copyright material. Strictly no photocopying or scanning including sharing within your organisation UK hotel brand listing
6 News round-up Each week Hotel Analyst takes an in-depth look at the news and analyses the events which will shape the decisions of those involved in the hotel sector. The following Perspective articles provide unique insight into the operators working in the UK and an invaluable overview of the past year. Accor Accor declares new direction Accor squeezes Orange Accor picks Ozinga to take on HotelInvest Taxing times for hospitality Accor sends strong signal with Europe deal Second deal adds to HotelInvest London to add 10,000 rooms Newly split Accor tells positive story Europe on a budget Accor backs edgy new brand Mama Shelter Britannia Tough Choice after Akkeron restructure Holiday Inn package comes to market Heat up the branding iron Choice Choice helps itself to conversions as IHG churns RBS finds itself with more hotels once more Pandox sees time to sell Hilton unveils Curio Full circle for Choice and IHG Tough Choice after Akkeron restructure China operator looks to economy Choice stays home to enjoy the upturn Global operators benefit from US imbalance De Vere Lloyds ups disposal pace GLH Green light for Amba GLH shake up continues with Every launch Hilton Hilton bags Jurys trio Hilton s asset sweet spot Hilton raises outlook Hilton unveils Curio Hilton expands in Myanmar Hilton boosts forecast, cuts debt Relief as Scots vote no Hilton loses lease guarantee case Hilton bucks trend with China deal InterContinental Hotels Group Constellation shining for IHG Choice helps itself to conversions as IHG churns Holiday Inn package comes to market Apollo picks up IHG European portfolio Bonanza for IHG, Marriott shareholders Rebrands chase a growing range of target markets IHG up on takeover rumours IHG goes Full circle for Choice and IHG IHG sticks to plan as shareholders push for more MDAs suit German push for IHG Kew Green cements Holiday Inn partnership Global operators benefit from US imbalance Starwood scoops De Vere Venues De Vere winds down as Cook goes 8 UK hotel brand listing 2014 This is copyright material. Strictly no photocopying or scanning including sharing within your organisation
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