Contents  
INTRODUCTION   1  

METHODOLOGY   5  

DEFINITION   6  

TRENDS  AND  ISSUES   8  

The  power  of  the  brand   Error!  Bookmark  not  defined.  
Using  the  halo  effect   8  
Luxury  brands   Error!  Bookmark  not  defined.  
Soft  branding   16  

SEGMENTATION  OF  BRANDS   20  

Star-­‐rating   20  
STR  classifications   20  
Chain  scale  segments   21  
Types   21  
Purpose  of  hotel   22  
Examples  of  specific  company  segmentations   22  
Hotel  Analyst’s  segmentation   24  
Summary   25  

BRANDS   30  
Ones  to  watch   146  

 
  

Introduction  
The  purpose  of  this  report  is  to  bring  clarity  to  the  European  hotel  brand  landscape  and  provide  readers  with  a  
comprehensive  branding  structure.  

The  report  investigates  the  different  ways  that  hotel  brands  are  segmented:  

• Star-­‐rating  
• Chain  scales  
• Purpose  of  hotel  

Using   the   information   provided   in   the   brand   profiles   in   the   report,   an   illustrative   brand   landscape   for   the  
European  hotel  brands  split  by  chain  scale  as  defined  by  themselves  is  provided.  

The   next   section   provides   useful   charts   and   tables   of   the   leading   European   brands   split   by   segment;   growth   of  
the  leading  brands,  brands  in  transition  and  new  brands  and  concepts.  

In  the  final  section  of  the  report,  there  are  100  brand  profiles  of  the  individual  leading  European  hotel  brands  
plus  an  additional  20  ‘Ones  to  Watch’.  

Table  1:  Leading  European  hotel  brands  to  be  profiled  in  this  report  (2017)  

  Europe  as  share  of  

Brand   Company   STR   Rooms  in  Europe   whole  portfolio  
Best  Western   Best  Western  Hotels  &  Resorts   M     82,000   27%  
Ibis   AccorHotels   M     82,342   58%  
Premier  Inn   Whitbread   E     69,297   96%  
Mercure   AccorHotels   UM     63,945   66%  
Novotel   AccorHotels   U     44,469   49%  
Holiday  Inn     IHG   UM     46,024   22%  
e
Radisson  Blu   Carlson  Rezidor  Hotel  Group   UU     45,600   80%  
Ibis  Budget   AccorHotels   E     44,916   80%  
Hilton  Hotels  &  Resorts   Hilton  Worldwide   UU     42,500   21%  
Scandic  Hotels   Scandic  Hotels   U     40,750   100%  
NH  Hotels   NH  Hotel  Group   U     37,634   89%  
Travelodge     Travelodge     E     37,000   97%  
Ramada  Worldwide   Wyndham  Hotel  Group   M     31,000   26%  
B&B  Hotels   B&B  Hotels   E     28,000   96%  
Campanile   Louvre  Hotel  Group   M     28,000   100%  
Holiday  Inn  Express   IHG   UM     29,508   34%  
e
Barcelo   Barcelo  Hotels  &  Resorts   U/UM     25,000   66%  
Sol   Melia  Hotels  International   M     24,500   97%  
Marriott  Hotels   Marriott  International   UU     23,872   12%  
Ibis  Styles   AccorHotels   M     24,039   63%  
e
Melia   Melia  Hotels  International   U     20,500   64%  
Crowne  Plaza  Hotels  &  Resorts   IHG   U     21,633   19%  
HotelF1   AccorHotels   E     16,534   100%  
Premiere  Classe   Louvre  Hotel  Group       19,000   100%  

1  

 
  
  Europe  as  share  of  
Brand   Company   STR   Rooms  in  Europe   whole  portfolio  
Clarion   Choice  Hotels  International   U     17,865   41%  
Sheraton   Marriott  International   U     17,069   11%  
Park  Inn  by  Radisson   Carlson  Rezidor  Hotel  Group   UM     17,600   80%  
Quality   Choice  Hotels  International   UM     16,985   12%  
Maritim   Maritim  Hotels   U     15,500   100%  
Kyriad   Louvre  Hotel  Group   M     14,506   100%  
Design  Hotels   Marriott  International   -­‐     14,056   65%  
Motel  One   Motel  One   E     16,500   100%  
Riu  (incl  Classic,  Club,  Palace,  Plaza)   Riu  Hotels  &  Resorts   U     14,000   31%  
a
Tryp  by  Wyndham   Wyndham  Hotel  Group/Melia   UM     13,532   78%  
Doubletree  by  Hilton   Hilton  Worldwide   U     13,121   12%  
Comfort  Inn   Choice  Hotels  International   UM     12,354   10%  
H10   H10  Hotels   U     12,000   86%  
Thon   Thon   U     11,482   100%  
 b
Hyatt  Regency   Hyatt  Hotels  Corp   UU     10,606   14%  
Sokos   Sokos   U     10,327   100%  
Balladins   Dynamique  Hotel  Mgt  Gp   E     10,000   100%  
Britannia  Hotels   Britannia  Hotels   -­‐     10,000   100%  
Iberostar  (incl  Grand  Collection)   Iberostar   U     10,000   37%  
Pestana   Pestana   UU     10,000   100%  
InterContinental  Hotels  &  Resorts   IHG   L     9,724   16%  
AC  Hotels  by  Marriott   Marriott  International   U     9,879   82%  
Van  der  Valk   Van  der  Valk   UM     9,459   100%  
Golden  Tulip   Louvre  Hotel  Group   UM     9,309   46%  
Courtyard  by  Marriott   Marriott  International   U     10,167   6%  
Renaissance  Hotels   Marriott  International   UU     8,548   17%  
Pullman   AccorHotels   UU     8,353   24%  
Eurostars   Hotusa     U     8,000   100%  
Danubius   Danubius  Hotels  Group   UM     8,000   100%  
Valamar   Valamar  Hotels  &  Resorts   -­‐     7,928   100%  
Hilton  Garden  Inn   Hilton  Worldwide   U     7,759   8%  
NH  Collection  Hotels   NH  Hotel  Group   UU     7,690   73%  
Jurys  Inn   Jurys  Inn   UM     7,538   100%  
Catalonia   Catalonia   -­‐     7,000   88%  
First   First  Hotels   U     6,902   100%  
Dorint     Dorint  Hotels  &  Resorts   U     6,707   100%  
Park  Plaza   Carlson  Rezidor  Hotel  Group   U     6,659   71%  
The  Luxury  Collection   Marriott  International   L     6,017   33%  
Sofitel   AccorHotels   L     6,659   21%  
Kempinski   Kempinski   L     6,200   31%  
Hampton  by  Hilton   Hilton  Worldwide   UM     6,167   3%  
Westin  Hotels  &  Resorts   Marriott  International   UU     6,241   8%  
InterCity     Deutsche  Hospitality       6,000   76%  
Vienna  House   Vienna  International   M     5,892   100%  
e
Steigenberger   Deutsche  Hospitality     UU     5,810   83%  
Mitsis   Mitsis   UU     5,700   100%  

2  

 
  
  Europe  as  share  of  
Brand   Company   STR   Rooms  in  Europe   whole  portfolio  
Grupotel   TUI   M     5,600   100%  
e
Movenpick   Movenpick  Hotels  &  Resorts   U     5,200   25%  
Le  Meridien   Marriott  International   UU     5,051   18%  
Austria  Trend   Verkehrsburg  Hotellerie   U     5,000   100%  
Citadines  Apart'hotel   Ascott  Ltd   UM     4,727   100%  
Crystal     Crystal  Hotels   UM     5,000   100%  
PentaHotels   Pentahotels   -­‐     5,000   98%  
Silken  Hoteles   Silken  Hoteles   U     4,845   100%  
M  Gallery   AccorHotels   UU     4,835   53%  
Adagio/Adagio  Access   AccorHotels   UM     5,067   42%  
Macdonald   Macdonald  Hotels   U     4,500   100%  
Autograph  Collection  Hotels   Marriott  International   UU     4,710   18%  
Days  Inn   Wyndham  Hotel  Group   E     4,102   3%  
Tulip  Inn   Louvre  Hotel  Group   UM     3,620   42%  
Ascend   Choice  Hotels  International   U     3,585   na  
b
Grand  Hyatt   Hyatt  Hotels  Corp   L     3,484   14%  
Fairmont   AccorHotels   L     2,688   11%  

The  Ritz  Carlton   Marriott  International   L     2,925   9%  

Wyndham  Hotels  &  Resorts   Wyndham  Hotel  Group   UU     2,590   11%  
ATA   ATA  Hotels   U     2,500   100%  
Park  Hyatt   Hyatt  Hotels  Corp   L     2,486   34%  
Copthorne  Collection   Millennium  &  Copthorne  Hotels   U     2,429   56%  
Four  Points  by  Sheraton   Marriott  International   U     2,202   6%  
JW  Marriott   Marriott  International   L     2,075   6%  
CitizenM   CitizenM   U     2,000   93%  
Innside  by  Melia   Melia  Hotels  International   U     2,000   92%  
W  Hotels   Marriott  International   L     1,332   10%  
Hesperia  Resorts   NH  Hotel  Group   U     1,144   49%  
nhow   NH  Hotel  Group   UU     828   100%  
St  Regis   Marriott  International   L     720   9%  

Note:  STR  –  E  =  economy;  M  =  midscale;  UM  =  upper  midscale;  U  =  upscale;  UU  =  upper  upscale;  L  =  luxury  
a b
 includes  Europe,  Middle  East  &  Africa;    includes  Europe,  Middle  East  &  Africa  and  SW  Asia  
Source:  Hotel  Analyst  

Table  2:  One  to  watch  brands  to  be  profiled  in  this  report  (2017)  

Europe  as  share  of  

Brand   Company   STR   Rooms  in  Europe   whole  portfolio  
7  Days  Inn   Plateno  Hotels  Group   E   -­‐    
Ascend  Collection   Choice  Hotels  International   U   3,585   27%  
Canopy  by  Hilton   Hilton  Worldwide                                             -­‐   112   100%  

Clayton  Hotels   Dalata  Hotel  Group   U   4,540   100%  

Even  Hotels   IHG   U   -­‐   -­‐  

GLo   Best  Western  Hotels  &  Resorts   -­‐   -­‐   -­‐  
HomeInns   BTG  Hotels   -­‐   -­‐   -­‐  

3  

 
  
Europe  as  share  of  
Brand   Company   STR   Rooms  in  Europe   whole  portfolio  
Hualuxe  Hotels  &  Resorts   IHG   U   -­‐   -­‐  
Hub  by  Premier  Inn   Whitbread   E   Nine  hotels   100%  
Hyatt  Centric                                                                                                  Hyatt  
    Hotels  Corp   UU   -­‐   -­‐  
Jaz  in  the  City   Deutsche  Hospitality   U   Two  hotels   100%  
Jo&Joe   AccorHotels       98   100%  

Kimpton  Hotels  &  Restaurants   IHG   UU   149   1%  

Maldron  Hotels     Dalata  Hotel  Group     1,857   100%  

MamaShelter   AccorHotels   -­‐   677   82%  

Metropolo   Jin  Jiang  Hotels  Group   -­‐   -­‐   -­‐  

Moxy   Marriott  International   UM   1,000   77%  
nhow   NH  Hotels  Group   UU   Three  hotels   100%  
         
Prizotel   Carlson  Rezidor  Hotel  Group   -­‐   555   100%  
Quorvus  Collection   Carlson  Rezidor  Hotel  Group   UU   c.  400   50%  
Radisson  Red   Carlson  Rezidor  Hotel  Group     c.1000   40%  
Tru  by  Hilton   Hilton  Worldwide   -­‐   -­‐   -­‐  
Vib   Best  Western  Hotels  &  Resorts   -­‐   -­‐   -­‐  
Zoku   Zoku   -­‐   1  aparthotel   -­‐  
Note:  STR  –  E  =  economy;  M  =  midscale;  UM  =  upper  midscale;  U  =  upscale;  UU  =  upper  upscale;  L  =  luxury  

Source:  Hotel  Analyst  

 

4  

 
  

Trends  and  issues  

White  space  
The  large  global  operators  started  out  as  a  brand  of  one,  with  others  added  gradually.  In  the  past  few  years  the  
sector   has   seen   an   uptick   in   M&A   which   has   lead   to   brand   stables   expanding   and,   in   the   case   of   Marriott  
International’s  takeover  of  Starwood  Hotels  &  Resorts,  creating  a  group  of  30  flags.    

Despite  brands  across  an  array  of  price  points,  the  appetite  for  growth  does  not  seem  to  be  abating.  

This  is  being  driven  by  two  factors:  a  more  sophisticated  consumer  and  the  need  to  provide  owners  with  more  
options   as   existing   brands   reach   capacity   in   some   territories   and   other   brands   are   needed   to   avoid   non-­‐
compete  clauses.  

At  InterContinental  Hotels  Resorts,  the  company  celebrated  the  end  of  Richard  Solomons’  tenure  as  CEO  with  
the  news  that  it  had  been  looking  at  its  white  space  and  spotted  a  gap,  as  its  Holiday  Inn  brand  family  reached  
capacity  in  the  US,  with  a  new  brand  naked  Avid  Hotels.  

The   company   expects   the   brand   to   be   franchise-­‐ready   in   the   Autumn   with   the   first   hotels   beginning  
construction   in   early   2018   and   opening   in   2019.   Initial   development   will   be   focused   in   the   US   market.   The  
prototype  features  95  to  100  rooms.  

Solomons  said:  “This  new  brand  builds  on  IHG’s  leading  position  in  the  midscale  segment  alongside  Holiday  Inn  
and  Holiday  Inn  Express.  It  addresses  the  needs  of  a  rapidly  growing  and  underserved  segment  and  we  believe  
it  will  shape  the  future  of  this  unique  midscale  category.”  

Guest  rooms  will  be  a  mix  of  65%  220  square  foot  king  and  35%  275  square  foot  queen,  featuring  a  built-­‐in  
work  space,  open  closet  storage  with  luggage  shelf,  “a  great  shower  and  a  smart  TV”.  

Other   details   include   “intimate   and   inviting   public   spaces,   including   a   mix   of   seating   designed   perfectly   for  
travellers   looking   to   spend   30   to   45   minutes   in   the   lobby   working,   socialising   or   enjoying   a   complimentary  
breakfast”  and  grab  and  go  food  providing  owners  “with  a  simple,  low-­‐cost  operating  model”.  

Elie   Maalouf,   CEO,   IHG,   Americas,   said:   “These   travellers   will   often   spend   hours   researching   hotels   to   find   a  
great  and  affordable  lodging  experience  in  this  segment.  When  they  can’t  find  it,  they  compromise,  accepting  
lower   standards   and   an   inconsistent   experience   to   get   the   price   they   want.   We   will   change   that   with   this   new  
brand  by  delivering  a  superior  guest  experience  that  doesn’t  currently  exist  at  this  price  point.”  

Incoming   CEO   Keith   Barr   identified   other   gaps,   commenting   in   his   first   earnings   call   since   taking   the   helm:  
“There   are   clearly   opportunities   in   luxury,   above   InterContinental,   in   resorts,   in   extended   stay,   in   collection  
brands.  There  are  a  number  of  areas  we  have  mapped  out.  But  they  have  to  be  able  to  scale  up.  

“With   the   success   of   our   mainstream   brands,   we   see   significant   opportunity   in   the   midscale   segment.   There   is  
clear   opportunity   to   build   another   mainstream   brand,   priced   between   Holiday   Inn   and   Holiday   Inn   Express   we  
have  identified  guests  who  are  being  underserved,  they  want  the  basics  done  well  at  an  exceptional  price.  

“This  will  become  one  of  our  largest  brands  in  the  US.  We  have  designed  a  brand  which  will  give  guests  best  in  
class  on  the  basics.  We  will  target  the  brand  at  a  USD95  to  USD105  rate,  addressing  a  USD20bn  underserved  

8  

 
  
segment  in  the  US.  We  expect  to  bring  in  incremental  customers  to  IHG  who  are  unhappy  with  other  brands  in  
the  market.    

“The   demand   for   this   was   clear   at   our   recent   owners’   conference   with   over   100   written   expressions   of  
interest.  We  have  thought  about  how  we  can  launch  new  brands  faster,  what  makes  us  different  is  our  level  of  
engagement  with  our  customers  -­‐  they  are  co-­‐creating  it  with  us.  I  also  think  that  other  brands  that  we  have  
launched   in   the   past   have   been   in   slower-­‐growing   segments.   This   is   playing   into   the   mainstream,   where   we  
have  thousands  of  owners.  This  plays  into  our  strengths.”  

CFO  Paul  Edgecliffe-­‐Johnson,  added:  “Our  expectation  with  the  new  brand  is  that  we  won’t  have  to  put  any  
meaningful   capex   into   the   new   brand.   If   you   think   of   our   long-­‐term   perspective   of   USD150m   in   some  
maintenance   and   key   money,   we   think   that’s   adequate.   There   is   a   little   headroom   in   that   number   if   we  
decided  to  launch  some  new  brands.”  

When  asked  whether  the  company  would  buy  in  a  new  brand,  Barr  said:  “M&A  will  always  be  something  which  
we  will  consider  to  fill  out  white  space  -­‐  but  there  is  very  little  out  there  at  the  moment.”  

INDUSTRY   INSIGHT:   [by   Katherine   Doggrell:   As   Accor   CEO   Sebastian   Bazin   will   be   able   to   tell   Barr,   the  
key   role   of   an   incoming   CEO   is   to   accelerate   growth   to   a   level   where   shareholders   find   their   eyes  
streaming   and   their   throats   hoarse   from   screaming.   As   exhausted   observers   have   noted,   Bazin   has  
kept  his  foot  firmly  down,  adding  brands  organically  and  through  investment,  both  in  the  traditional  
space  and  out,  yet  some  still  see  a  hole  for  the  group  in  the  US,  a  hole  which  IHG  is  now  looking  to  fill.  

 The  phrase  “white  space”  was  used  extensively  during  the  IHG  call  and  the  new  CEO  identified  what  
he   saw   as   gaps,   with   luxury   as   well   as   midscale   identified.   There   was   no   comment   on   whether   the  
group   would   be   moving   into   the   sharing   economy   or   any   other   areas   which   are   moving   from   the  
periphery  to  the  mainstream.    

Morgan   Stanley   remained   to   be   convinced,   commenting:   “We   do   not   see   the   new   brand   as   being  
particularly   material   either   in   the   near-­‐term   and   think   it   could   lead   to   a   lull   in   signings   for   IHG's  
existing  brands  as  owners  consider  switching”.    

In  the  coming  months  many  observers  will  be  looking  at  IHG  to  see  whether  Barr  is  plugging  gaps  or  is  
the   finger   in   the   dyke.   The   company   has   yet   to   make   a   move   to   deter   the   rumours   that   it   will   be  
scooped  up  by  another  soon.    

The  danger  of  looking  at  brands  in  terms  of  development  is  that  the  appeal  to  the  consumer  can  be  
put  in  danger.  Imran  Hussain,  director  of  collaborative  marketing  agency  THC/Endeavour  told  us:  “As  
an  industry,  we’ve  found  that  is  crucial  that  we  know  our  customer,  create  something  for  them,  which  
they   like   and   wish   to   repeat   time   and   time   again.   Groups   like   Ace   and   citizenM   have   proved   the  
inherent   virtues   of   knowing   one’s   customer.   Having   successfully   scaled   across   key   destinations   cities  
around   the   globe,   they   were   committed   to   either   a   movement   they   saw   emerging   or,   in   the   case   of  
Ace,  addressed  something  that  was  missing  from  the  market.  

“I  don’t  think  reverse  engineering  a  “brand”  so  it  can  fit  into  an  asset  owner’s  ideals  is  the  right  play.  
Naturally   I   can   see   the   appeal,   but   it’s   a   short   term   win   for   a   long   term   challenge.   The   long   term  
challenge   being   repeat   business   and   exposure   to   the   right   markets   to   grow   the   business   into   multi-­‐
sites  globally.  

9  

 
  

Segmentation  of  brands  

Star-­‐rating  
Although   hotels   are   classified   into   'Star'   categories   (one-­‐star   to   five-­‐star),   there   is   no   standard   method   of  
assigning  these  ratings,  and  compliance  with  customary  requirements  is  voluntary.  A  US  hotel  with  a  certain  
rating,  for  example,  may  look  very  different  from  a  European  or  Asian  hotel  with  the  same  rating,  and  would  
provide  a  different  level  of  amenities,  range  of  facilities,  and  quality  of  service.    

Whereas  hotel  chains  assure  uniform  standards  throughout,  non-­‐chain  hotels  (even  within  the  same  country)  
may   not   agree   on   the   same   standards.   In   Germany,   for   example,   only   about   30%   of   the   hotels   choose   to  
comply  with  the  provisions  of  the  rules  established  by  the  German  Hotels  &  Restaurants  association.  Although  
both  UN  World  Tourism  Organisation  (UNWTO)  and  International  Organisation  for  Standardisation  (ISO)  have  
been   trying   to   persuade   hotels   to   agree   on   some   minimum   requirements   as   worldwide   norms,   the   entire  
membership  of  the  International  Hotel  &  Restaurant  Association  (IH&RA)  opposes  any  such  move.    

According   to   IH&RA,   to   harmonise   hotel   classification   based   on   a   single   grading   (which   is   uniform   across  
national  boundaries)  would  be  an  undesirable  and  impossible  task.  As  a  rough  guide:    

• One-­‐star   hotel   provides   a   limited   range   of   amenities   and   services,   but   adheres   to   a   high   standard   of  
facility-­‐wide  cleanliness.  
• A   two-­‐star   hotel   provides   good   accommodation   and   better   equipped   bedrooms,   each   with   a   telephone  
and  attached  private  bathroom.  
• A   three-­‐star   hotel   has   more   spacious   rooms   and   adds   high-­‐class   decorations   and   furnishings   and   colour  
TV.  It  also  offers  one  or  more  bars  or  lounges.  
• A  four-­‐star  hotel  is  much  more  comfortable  and  larger,  and  provides  excellent  cuisine  (table  d'hote  and  a  
la  carte),  room  service,  and  other  amenities.  
• A  five-­‐star   hotel   offers   luxurious  premises,  widest  range  of  guest  services,  as  well  as  a  swimming  pool  and  
3
sport  and  exercise  facilities .  

STR  classifications  
STR  and  STR  Global  use  Chain  Scales  and  these  are  a  very  useful  indicator  of  where  brands  sit  in  relation  to  one  
another.  The  brands/chains  are  sorted  by  chain  scale  based  on  the  brands  previous  year’s  annual  systemwide  
(global)  Average  Daily  Rate.  The  rate  ranges  defining  each  chain  scale  are  determined  by  STR  itself.  

They  have  the  following  chain  scales:  

• Luxury  
• Upper  upscale  
• Upscale  
• Upper  midscale  
• Midscale  

                                                                                                                                   
 
3
 http://www.businessdictionary.com/definition/hotel.html#ixzz2lesn14iN  

20  

 
  
• Economy  

There  are  some  discrepancies  between  where  the  brand  markets  itself  and  where  it  is  positioned  by  STR.  For  
example,  STR  Global  has  Novotel  listed  as  an  upscale  brand,  but  Accor  in  its  own  marketing  literature  describes  
Novotel  as  upper  midscale  or  midscale.  

Chain  scale  segments  

Performance   in   the   US   lodging   industry   is   evaluated   based   upon   chain   scale   segments,   which   are   generally  
defined  as  follows:  

• Luxury  -­‐  typically  offers  first  class  accommodations  and  an  extensive  range  of  on-­‐property  amenities  and  
services,   including   restaurants,   spas,   recreational   facilities,   business   centres,   concierges,   room   service   and  
local   transportation   (shuttle   service   to   airport   and/or   local   attractions).   ADR   is   normally   greater   than  
USD210  for  hotels  in  this  category.  
• Upper  Upscale  -­‐  typically  offers  a  full  range  of  on-­‐property  amenities  and  services,  including  restaurants,  
spas,   recreational   facilities,   business   centres,   concierges,   room   service   and   local   transportation   (shuttle  
service  to  airport  and/or  local  attractions).  ADR  normally  falls  in  the  range  of  USD145  to  USD210  for  hotels  
in  this  category.  
• Upscale   -­‐   typically   offers   a   full   range   of   on-­‐property   amenities   and   services,   including   restaurants,   spas,  
recreational   facilities,   business   centres,   concierges,   room   service,   and   local   transportation   (shuttle   service  
to  airport  and/or  local  attractions).  ADR  normally  falls  in  the  range  of  USD110  to  USD145  for  hotels  in  this  
category.  
• Upper   Midscale   -­‐   typically   offers   restaurants,   vending,   selected   business   services,   partial   recreational  
facilities   (either   a   pool   or   fitness   equipment),   and   limited   transportation   (airport   shuttle).   ADR   normally  
falls  in  the  range  of  USD90  to  USD110  for  hotels  in  this  category.  
• Midscale   -­‐   typically   offers   limited   breakfast,   selected   business   services,   limited   recreational   facilities  
(either   a   pool   or   fitness   equipment),   and   limited   transportation   (airport   shuttle).   ADR   normally   falls   in   the  
range  of  USD65  to  USD90  for  hotels  in  this  category.  
• Economy   -­‐   typically   offers   basic   amenities   and   a   limited   breakfast.   ADR   is   normally   less   than   USD65   for  
hotels  in  this  category.  

Types  
Upscale   luxury:   An   upscale   full   service   hotel   facility   that   offers   luxury   amenities,   full   service   accommodations,  
on-­‐site  full  service  restaurant(s),  and  the  highest  level  of  personalized  and  professional  service.  Luxury  hotels  
fare   normally   classified   with   at   least   a   four   or   five-­‐star   rating   depending   on   the   country   and   local   classification  
standards.   Examples   may   include:   InterContinental,   Waldorf   Astoria,   Four   Seasons,   Conrad,   Fairmont,   and   The  
Ritz-­‐Carlton.  

Full   service:   Full   service   hotels   often   contain   upscale   full-­‐service   facilities   with   a   large   volume   of   full   service  
accommodations,   on-­‐site   full   service   restaurant(s),   and   a   variety   of   on-­‐site   amenities   such   as   swimming   pools,  
a   health   club,   children's   activities,   ballrooms,   on-­‐site   conference   facilities,   and   other   amenities.   Examples  
include:  Holiday  Inn,  Sheraton,  Westin,  Hilton,  Marriott,  and  Hyatt  hotels.  

Boutique   /   lifestyle   hotels:   Boutique   hotels   are   smaller   independent   non-­‐branded   hotels   that   often   contain  
upscale   facilities   of   varying   size   in   unique   or   intimate   settings   with   full   service   accommodations.   Boutique  

21  

 
  
hotels   are   generally   100   rooms   or   less.   Some   historic   inns   and   boutique   hotels   may   be   classified   as   luxury  
hotels.  Examples  include  Hotel  Indigo  and  Kimpton  Hotels  

Focused  or  select  service:  Small  to  medium-­‐sized  hotel  establishments  that  offer  a  limited  amount  of  on-­‐site  
amenities   that   only   cater   and   market   to   a   specific   demographic   of   travellers,   such   as   the   single   business  
traveller.  Most  focused  or  select  service  hotels  may  still  offer  full  service  accommodations  but  may  lack  leisure  
amenities   such   as   an   on-­‐site   restaurant   or   a   swimming   pool.   Examples   include   Crowne   Plaza,   Courtyard   by  
Marriott  and  Hilton  Garden  Inn.  

Economy   and   limited   service:   Small   to   medium-­‐sized   hotel   establishments   that   offer   a   very   limited   amount   of  
on-­‐site  amenities  and  often  only  offer  basic  accommodations  with  little  to  no  services,  these  facilities  normally  
only  cater  and  market  to  a  specific  demographic  of  travellers,  such  as  the  budget-­‐minded  traveller  seeking  a  
"no   frills"   accommodation.   Limited   service   hotels   often   lack   an   on-­‐site   restaurant   but   in   return   may   offer   a  
limited   complimentary   food   and   beverage   amenity   such   as   on-­‐site   continental   breakfast   service.   Examples  
include  Ibis  Budget,  Hampton  Inn,  Aloft,  Holiday  Inn  Express,  Fairfield  Inn,  Four  Points  by  Sheraton,  and  Days  
Inn.  

Extended   stay:   Extended   stay   hotels   are   small   to   medium-­‐sized   hotels   that   offer   longer   term   full   service  
accommodations   compared   to   a   traditional   hotel.   Extended   stay   hotels   may   offer   non-­‐traditional   pricing  
methods   such   as   a   weekly   rate   that   cater   towards   travellers   in   need   of   short-­‐term   accommodations   for   an  
extended   period   of   time.   Similar   to   limited   and   select   service   hotels,   on-­‐site   amenities   are   normally   limited  
and   most   extended   stay   hotels   lack   an   on-­‐site   restaurant.   Examples   include   Staybridge   Suites,   Candlewood  
Suites,   Homewood   Suites   by   Hilton,   Home2   Suites   by   Hilton,   Residence   Inn   by   Marriott,   Element,   and  
Extended  Stay  Hotels.  

Purpose  of  hotel  

Hotels  for  a  specific  purpose  or  aimed  at  a  specific  target  market  such  as  

• Business  and  conference  hotels  

• Resort  hotels  
• Wellness  &  spa  hotels  

Examples  of  specific  company  segmentations  

Marriott  International  
In   order   to   present   its   entire   portfolio,   from   the   finalisation   of   the   merger   with   Starwood   Hotels   &   Resorts,  
Marriott  International  decided  to  divide  its  brands  into  those  that  it  qualifies  as  "Classic"  and  others  that  are  
"Distinctive".   Classic   hotels,   more   timeless,   versus   characteristic   hotels   with   an   affirmed   personality.   The  
brands  are  divided  in  a  fairly  balanced  manner,  15  Classic  for  16  Distinctive.    

A   second   differentiation   characterises   them   within   each   major   category   depending   on   the   level   of   service:  
Luxury,   Premium   and   Select.   A   third   distinction   separates   short-­‐stay   hotels   from   long-­‐stay   concepts   such   as  
residence  hotels.  The  result  is  a  table  with  three  entries,  a  new  matrix  that  acts  as  a  basis  for  marketing  teams  
to  refiner  the  presentation  and  differentiation  of  each.  

Classic  Luxury:  The  Ritz-­‐Carlton,  St-­‐Regis,  JW  Marriott  

22  

 
  
Chart  1:  Illustrative  landscape  for  leading  European  hotel  brands  (2017)  

SOFT 1-­‐STAR 5-­‐STAR

BRANDED

EXTENDED
STAY

LIFESTYLE

RESORT  /
WELLNESS

URBAN

BUSINESS
MEETINGS

STANDARD

ECONOMY MID-­‐MARKET UPPER  MARKET LUXURY

 
 

Summary  
Chart  2:  Illustrative  brandscape  for  European  luxury  and  upscale  brands    
1.2

0.8

0.6

0.4

0.2

0
UPSCALE UPPER  UPSCALE LUXURY

   
Source:  McKenney  Research  

25  

 
  

GOLDEN  TULIP  
 
Ownership   Louvre  Hotel  Group    
Hotel  &  rooms   147  hotels  with  20,238  hotels  
Launched   1962  
STR  Classification   Upper  midscale  
Geography    
 
(hotels)  
 
9%  

US  

Internavonal  

91%  
   
     
Characteristics   • 4-­‐star  hotels  combining  international  standards  and  local  flavours  
• Present  in  35  countries  
• Situated  in  key  locations:  city  centres  or  strategic  places  
• Repositioning  of  the  brand  consists  of  giving  the  basics  a  make-­‐over.  At  the  heart  of  the  
hotel  you  will  find  an  open  and  multifunctional  lobby,  designed  to  be  a  modern-­‐day  
living  space.  In  addition  to  check-­‐in/check-­‐out,  this  hub  encourages  exchange  and  
encounters,  providing  clients  everything  they  need  to  get  down  to  business  or  sit  back  
and  relax.    
• Food  service  goes  beyond  the  basics  you  have  come  to  expect,  adding  surprises  
throughout  the  day,  adapting  to  today’s  clients  by  serving  what  they  want,  when  they  
want  it.    
• Enhancing  the  stay  experience,  a  continually  renewed  ‘beauty  bar’  is  available  for  
business  travellers  to  select  and  test  hygiene  products.    
• Weather  permitting,  the  hotel  roof  will  transform  into  a  terrace  for  convivial,  panoramic  
evenings,  making  memories  that  travellers  will  want  to  share  with  friends  and  family  
when  they  get  home.  
Development  plans   Repositioning  of  the  brand  
Brand  standards    
Latest  news   Announced  that  LHG  is  setting  itself  the  goal  of  positioning  Golden  Tulip  as  the  world’s  first  
4-­‐star  brand  
 

61  

 
  

GRAND  HYATT  
 
Ownership   Hyatt  Corporation  
Hotel  &  rooms   47  hotels  with  25,492  rooms  
Launched   1980  
STR  Classification   Luxury  
Geography     Operating  model  
(rooms)   Hyatt  Corp.  as  whole  
 
14%   8%   12%  
Owned  &  leased  
38%   Americas  
28%   Managed  
Asia  Pacific  
Franchised  
EAME  &  SW  Asia  
Others  
48%   52%  

   
xx      
Characteristics   • Describes  itself  as  Full  Service,  Upper  upscale  
• Key  locations  include  Beijing,  Berlin,  Dubai,  Hong  Kong,  New  York  &  Tokyo    
• Grand  Hyatt  hotels  are  distinctive  hotels  in  major  gateway  cities  and  resort  destinations.    
With  presence  around  the  world  and  critical  mass  in  Asia,  Grand  Hyatt  hotels  provide  
sophisticated  global  business  and  leisure  travellers  with  elegant  accommodations,  
extraordinary  restaurants,  bars,  spas  and  fitness  centres,  as  well  as  comprehensive  
business  and  meeting  facilities.  Signature  elements  of  Grand  Hyatt  hotels  include  
dramatic  architecture,  state  of  the  art  technology  and  facilities  for  an  array  of  business  
or  social  gatherings  of  all  sizes.  
• Grand  Hyatt  is  a  premium  hotel  brand  with  350-­‐700  rooms  on  average,  spectacular  
public  spaces,  and  multiple  dining  and  entertainment  venues.  Grand  Hyatt  is  
differentiated  from  its  competitors  by  its  visual  image,  prestigious  status  and  glamorous  
style.  
Performance   Q2  2017  –  occupancy  77.2%  with  ADR  USD223  RevPAR  USD172,  down  3.7  %  on  the  year  
Key  competitors   Mandarin  Oriental,  Shangri  La,  InterContinental,  Fairmont  
Customer  profile   Individual  business  and  leisure  travellers,  large  and  small  meetings  and  social  events  
Development  plans   • Providing  entry  or  enhanced  presence  into  attractive  markets  
• Expected  to  open  more  than  60  hotels  in  2016  
Brand  standards    
2
Rooms   300-­‐700  rooms.  Size  38-­‐50m  
Club  Lounge   The  Grand  Club  is  a  private  lounge  on  select  guest  floors  that  offers  a  complimentary  
continental  breakfast,  all-­‐day  refreshments,  evening  cocktails,  private  concierge  and  other  
exclusive  services  
2
Meetings   Grand  ballroom  and  junior  ballroom.  Meeting  and  banquet  facilities.  Minimum  3,000m  
F&B   Multiple  restaurants.  Could  include  live  entertainment  venues  if  appropriate  to  market  
2
Spas   Minimum  of  1,000m  with  indoor/outdoor  pool,  large  exercise  area,  spa  treatment  suites.  
High-­‐quality,  culturally  reflective  products  
Fitness  centre   State-­‐of-­‐the-­‐art  fitness  equipment.  
Latest  news   • In  2017  Hyatt  signed  a  management  agreement  with  Lotte  Tour  Development  for  a  
Grand  Hyatt  hotel  in  Jeju  City,  South  Korea.  The  new  hotel,  expected  to  be  the  second  
largest  Grand  Hyatt  hotel  in  the  world,  will  be  Hyatt’s  sixth  property  in  the  country.
 

62  

 
  

RADISSON  RED    

Ownership   Carlson  Rezidor  Hotel  Group  

Hotel  &  rooms   14  hotels  with  2,523  rooms  (open  and  under  development)  
Launched   2014  
STR  Classification   -­‐  
Geography     Operating  model  
(  rooms  )    
 

27%  
33%   Asia  Pacific  

EMEA    
Americas  

40%  
 
     
Characteristics   • Lifestyle  select  
• Totally  tapped  into  the  modern,  hi-­‐octane,  hi-­‐tech  global  traveller,  Radisson  Red  truly  
dares  to  be  different.  Tech  and  design  savvy,  pragmatic,  creating  an  experience  that  is  
truly  guest  centric,  from  definition  to  delivery.  
• Radisson  RED  is  a  new  philosophy  that  connects  with  a  millennial  mindset  through  art,  
music  and  fashion.  Offering  the  freedom,  flexibility  and  fun  that  the  millennial  traveller  
wants.  
• Its  spaces  are  designed  to  be  bold,  open  and  animated  
Brand  specific  products   • OUIBAR+KTCHN  –  food,  drinks  and  social  hub  
• Events  &  Games  studio  
• RED  fitness  
Tag  line   Bringing  tomorrow’s  experiences  -­‐  today  
Development  plans   Aims  to  launch  up  to  60  hotels  globally  by  2020  
Brand  standards    
Target  location   Urban/airport  
Market  positioning   Lifestyle  select  
Design  style   Cutting-­‐edge,  pragmatic  connected  and  high  tech  
No.  of  rooms   Minimum  120  
2
GIA  per  room  (m )   50-­‐55  
Why  is  it  one  to  watch?   • Has  grown  quite  quickly  in  a  relatively  short  period  of  time  
• Now  also  has  the  backing  of  Chinese  owner,  HNA  
 

   

165  

 
  

TRU  BY  HILTON  

 
Ownership   Hilton  Worldwide  
Hotel  &  rooms   -­‐  
Launched   2016  
STR  Classification   -­‐  
Geography     Operating  model  
   
     
Only  one  property  is  under  development      
Characteristics   • Hilton  Worldwide’s  new  midscale  brand  
• The  company  says  the  new  brand  is  simplified,  spirited  and  grounded  in  Value.  
•  Tru  is  designed  to  fill  a  gap  in  the  US  midscale  and  economy  sectors.  
• Cost-­‐conscious  meets  cool-­‐conscious    
Development  plans   • The  first  Tru  branded  property  broke  ground  in  the  US  in  March  2016.    
• The  company  has  so  far  offered  it  only  to  existing  owners,  the  majority  of  which,  
Nassetta  said,  were  Hampton  owners.  He  added:  “We  have  not  spent  one  penny  in  key  
money  or  provided  one  penny  of  guarantees  or  one  penny  of  mezz  debt,  one  penny  of  
anything.”  
Brand  attributes    
Lobby     Four-­‐zone  lobby.  Work,  play,  lounge,  or  eat.  Our  lobby,  called  the  Hive,  has  a  dedicated  
space  for  each  activity.  
Work  spaces   Our  Hive  includes  plenty  of  space  for  guests  to  spread  out  and  do  their  work  including  semi-­‐
private,  sound  absorption  alcoves,  space  to  collaborate  with  others,  and  an  easily  accessible  
tablet  and  printer.  
Rooms   Stylish  and  thoughtfully  designed  guestrooms  and  spacious  bathrooms  with  walk-­‐in  
showers  and  lots  of  light.  
F&B   24/7  market:  Snacks,  drinks,  light  meals,  and  single-­‐serve  wine  and  beer  available  24/7  in  
its  market.  
Fitness  centre   Wellness  trends,  cardio,  strength  and  flexibility  
Why  is  it  one  to  watch?   Backed  by  Hilton  Worldwide,  this  brand  is  aimed  at  plugging  a  gap  in  its  brand  landscape.  
 

   

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