CHAIN reactions

As global hotel groups continue to expand their line-ups with new brands and acquisitions, Catherine Chetwynd surveys the latest moves and what they mean for buyers

When Marriott completed the purchase of Starwood Hotels & Resorts in September 2016, it created the world’s largest hotel group, with 30 brands, 5,800 properties and

1.1 million rooms across 110 countries.

And although, over the years, consolidation has reduced the overall number of global hotel groups, the number of brands owned by each one has grown.

Acquisitive Accor is now the largest chain in Europe and is spreading its wings worldwide via financial interests in, or takeovers of, other hotel groups.

In 2018 alone, this included Mantis

Group in South Africa, Mövenpick, SBE Entertainments Group (which embraces brands such as Mondrian, Hyde and newly created The House of Originals), US management company 21C Century Hotels and Polish chain Orbis.

There is also increasing emphasis on luxury. IHG has bought Kimpton and UK hotel group Principal, many of which have been rebranded to Kimpton, plus Regent and Six Senses.

Best Western has grown its upper upscale and luxury portfolio through the acquisition of Worldhotels, and launched upmarket boutique brands Sadie and Aiden; Deutsche

Hospitality is relaunching Steigenberger Hotels & Resorts, investing €120million in the existing portfolio, with a global brand strategy of 15% expansion per year; Belmond has been bought by LVMH; Orient Express Hotels has reappeared under the Accor flag, joining the group’s Fairmont, Raffles and Sofitel brands, and more recently, independent boutique hotel collection Greet; and Jumeirah Hotels has announced the group will increase its global presence with another 15 properties in the next five years and will eventually create a third, ‘super luxury’ brand. Got all that?

All this activity puts new focus on loyalty programmes, which continue to evolve. Marriott finally integrated Starwood Preferred Guest into Marriott Rewards late last year, naming it Marriott Bonvoy and uniting 120 million members. And Accor has announced an investment of €225million in creating ALL which, by the end of 2019, will bring the company’s eclectic portfolio on to one platform, allowing B2B, B2C and SME customers access to every element of Accor’s increasingly diverse offering.

Behind the scenes and rarely recognised as playing a major role in negotiations is the franchising of brands, as a result of which hotels are being run by different parties,