Industry and market trends
The industry today
market share for branded hotels
Global hotel industry demand is driven by economic growth and an increasing trend for domestic and global travel. Over the long term, the lodging industry has grown broadly in line with Gross Domestic Product (GDP). However, in the US, the largest market in terms of number of rooms, growth in consumer spend on lodging has exceeded GDP growth by 2.6 percentage points per annum over the last 50 years.
There are several industry metrics that are widely recognised and used to track performance, including revenue per available room (RevPAR) and rooms supply growth.
The branded hotel market
We benchmark our performance against the largest branded players that we consider to be our peer group, with a similar system size and pipeline to ours and who operate in similar market segments to us.
Five of the leading branded hotel companies (IHG, Hilton, Marriott, Accor and Starwood) account for approximately 36 per cent of total open branded rooms and 61 per cent of the branded development pipeline (hotels in planning and under construction but not yet open).
The industry tomorrow
At a local market level, industry performance is impacted by short-term economic, political or physical factors. However, in the long-term, growth in the global hotel industry is driven by a number of key drivers and trends.
Long-term macroeconomic trends substantially benefit the hotel industry.
2.6% GDP growth per annum over last 10 years
Increasing disposable income
Rising middle class
The growth of an ageing population, which has the desire and means to travel, is a favourable industry driver.
Ageing population (over 60s) with desire and means to travel (2013: 800m; 2050: 2bn)
Shift to multi-purpose trips
International travel is becoming increasingly viable for more people.
International tourist travel: to rise 3.3% per annum from 2010 to 2030
Increased airline competition/lower fares
Relaxed travel restrictions
Technology continues to have a multifaceted and substantial impact on our industry.
Rising mobile bookings - 75bn internet enabled devices by 2020
Social networks help plan trips and share experiences
Big data: Personalisation
The changing profile of guests, combined with developments in digital technology, is driving different accommodation needs and stay expectations.
Rise of the millennials - 320m trips per year by 2020 (up 47% from 2013)
Multi-generational family trips
Blurring of business and leisure travel
Changing trends have created a more dynamic competitive environment within the travel industry.
Growth of travel intermediaries
Growing sharing economy