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Hotel chains expand faster and faster – Where you’ll find you next top hotel jobs

Profile Photo By: Carsten Hennig
January 25, 2017

Hotel chains expand faster and faster – Where you’ll find you next top hotel jobs

Berlin, Germany – 24 January 2017
In March, hotel group CEO will travel to Germany’s capital to present their latest expansion plans. It is not unusual to announce all development projects – and sometimes only visions, not real hotel planning – weeks before. Here is an market overview:

Marriott International
Marriott International announced that 2016 represented the strongest year of rooms growth in its history. Marriott opened a record 55,000 rooms in 2016, excluding the 381,000 rooms gained with the Starwood acquisition. The combined company signed 880 new hotel deals, representing nearly 136,000 rooms, under long-term management and franchise agreements, and opened over 400 hotels with more than 68,000 rooms around the world. Marriott now operates or franchises over 6,000 hotels and nearly 1.2 million rooms.

The combined company further strengthened its leadership in STR’s high value luxury and upper-upscale segments with the signing of 236 new hotels, representing over 50,000 rooms, and the opening of over 100 hotels, representing over 27,000 rooms, in destinations such as Singapore, Houston and Sanya, China as a new generation of travelers seek distinctive experiences around the world. Marriott’s share of the industry’s luxury rooms pipeline is 29 percent. Independent hoteliers have more options than ever to leverage Marriott’s powerful loyalty and distribution systems with the Autograph Collection, which last year exceeded 110 open hotels, as well the Tribute Portfolio and The Luxury Collection brands. Combined, these three brands generated nearly 80 signed deals during the year, contributing to the opening of 28 hotels in 2016.

In Downtown LA, Marriott launched a new pop-up hotel innovation lab, creating an interactive model hotel experience to crowdsource real-time feedback from the public, furthering the company’s futuristic vision for the millennials hotel brands Aloft and Element. With business and leisure travelers looking for more unique spaces, Element is piloting a bold new guest room design that will feature a communal room in the center of four guest rooms, allowing travelers to share a kitchen, dining room and lounge area. This will provide more collaborative space for groups who would like to spend time together in a more private setting. Aloft will be revitalizing its food and beverage program with an emphasis on fresh, healthy ingredients such as spinach, quinoa and avocado. Travelers will be able to order customized “pots,” a healthy meal in a colorful to-go container with food that reflects regional tastes. A personalized pot can be ordered and paid for at a digital kiosk; guests will receive their pot with a time-stamped, label featuring their chef’s emoji. Tech-centric beverage concepts, such as a portable wine cart for Element that automatically pours wine when activated by a guest’s hotel room key card.

At year-end 2016, there were 116 Aloft and 23 Element hotels open around the world, with 150 Aloft and 73 Element hotels in the pipeline globally. In 2016, new signings of Elements were more than double 2015 signings, whereas Aloft experienced a 37 percent uptick in signed deals year over year. In 2017, Marriott expects to open 33 Aloft properties and 14 Element properties across the globe in a diverse array of cities such as Seoul, South Korea, Seattle, Washington, and South Bend, Indiana.

Marriott’s new lifestyle brand W Hotels landed in Budapest, Hungary. The 162-key stylish hotel is located directly across from the State Opera House. Following the success of W Hotels in Istanbul, Barcelona, St. Petersburg, London, Paris and Verbier, W Amsterdam became the seventh W Hotel in Europe when it opened in October 2015. W Hotels now boasts a worldwide portfolio of 50 properties around the globe, and is on track to reach 75 hotels by 2020.


Kimpton Kawana Bay Grenada Resort
Kimpton Kawana Bay Grenada Resort

InterContinental Hotels Group (IHG) is to expand with it’s Kimpton brand. In Los Angeles, a third hotel will be opened in spring this year – La Peer Hotel, the first hotel in West Hollywood’s renowned Design District. The first Kimpton hotel in Europe is to open in spring in Amsterdam – The hotel will be situated in the heart of Amsterdam’s vibrant city centre and near Amsterdam’s Centraal station. Set within three original Renaissance-era buildings, it will feature 274 guest rooms, including 15 signature rooms and suites (many with terraces), and eight meeting rooms. Wyers Bar & Restaurant, run by Executive Chef Sam de Marco, will offer American staples with a Dutch twist. For 2019, opening of Kimpton Kawana Bay Grenada Resort is planned. The 146-key resort will comprise 101 luxury studio rooms and 45 suites. 12 additional penthouse apartments will also be available for sale to private owners. A number of Kawana Bay’s suites will include private pools overlooking Grand Anse Beach, largely considered to be one of the world’s best beaches, and all rooms will feature spectacular ocean views. Additional amenities will include an infinity pool, chef-driven restaurant, lounge and beach bars, fitness center, spa and water sports facilities.

IHG also expand with it’s extended-stay concept Staybridges Suites – two new-build 120-room Staybridge Suites hotels in the Mexican cities of Irapuato and Silao. The Staybridge Suites brand is designed for business and leisure travelers who are spending an extended time away from home for business, relocation or leisure. Both 120-room properties in Irapuato and Silao will each feature a mix of 84 studios, 24 one-bedroom suites and 12 two-bedroom suites and will provide guests with amenities such as a complimentary, daily American-style hot breakfast buffet and The Social – the Staybridge Suites brand’s complimentary evening reception. These properties will have on-site guest laundry facilities, 24-hour fitness and business centers, home theater, an outdoor swimming pool and outdoor living room with barbecue and fire pit.

The latest resort development of IHG is the new 367-room Crowne Plaza hotel in Kota Kinabalu, Sabah, East Malaysia. The opening of Crowne Plaza Kota Kinabalu Waterfront in 2021 will mark the entry of the brand into East Malaysia. The hotel will be part of a mixed-use development at a prime waterfront location in downtown Kota Kinabalu, sitting amindst high-end residences and a number of dining establishments which offer stunning views of the city’s waterfront.

Wyndham Hotel Group
Wyndham just opened the 343-room Wyndham Grand Clearwater Beach in Florida. The striking two-tower resort, owned by Florida philanthropist Dr. Kiran Patel, sits just steps from Pier 60 and the white sands of Clearwater Beach, named the best beach in the U.S. It offers direct Gulf Coast views, signature dining, contemporary décor, and more than 22,000 square feet of event space – including the Dunes Ballroom, the largest in Pinellas County – for memorable meetings and events. Wyndham Grand Clearwater Beach is the brand’s 14th location in the U.S. – and the third in Florida, joining established resorts in Orlando and Jupiter – as it continues widening its footprint in amazing destinations like Athens, Phuket, Shanghai, Istanbul, Chicago, and Frankfurt. Wyndham Hotel Group recently unveiled plans for stunning new-construction Wyndham Grand hotels in Barbados, Nevis, Uruguay and Paraguay.

Deutsche Hospitality
Deutsche Hospitality, formerly known as Steigenberger Hotel Group, now signed it’s first hotel in India, where is CEO Puneet Chhatwal from. In a joint-venture with MDB group, in 2020 a 178-key business hotel with 123 serviced apartments will be opened in the business district of Whitfield in Bangalore. With MDB is targeted to develop 20 hotels until 2030 in India.

The business hotels branch InterCity expand with three openings in Germany – in Hamburg, Dortmund and Hildesheim in 2018 and 2019. Each of the hotels will bear the signature of the Italian architect Matteo Thun, whose interior design will characterise the next generation of IntercityHotels. All will have a restaurant, bar and conference area.

The third hotel brand Jan in the city rise with a second hotel in Stuttgart in southern Germany; opening this spring.

Deutsche Hospitality is adding a further country to its portfolio. From the second quarter of 2017, guests will be able to relax at the Steigenberger Hotel Kantaoui Bay and at the Jaz Hotel Tour Khalef in Sousse, Tunisia. The company already has a representation of several hotels in Egypt and will open two more on Cape Verde by 2020. This makes Tunisia the third African country in which the group will operate.

G6 Hospitality
G6 Hospitality, known for its iconic economy lodging brands, Motel 6 and Studio 6 in the U.S. and Canada, today announced that it is extending its footprint to Central America. The hospitality group signed a new area development agreement with InterAmerican Development Group. This development agreement is part of G6 Hospitality’s efforts to bring its unique brands to several countries in the region including Belize, Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica and Panama. With this new partnership, the company plans to expand its portfolio opening up to ten Hotel 6/Estudio 6 properties within the next five years.

Cachet Hospitality
Merchants Hospitality signed agreements with Cachet Hospitality Group (CHG) to manage and brand 510 West 42nd Street property as a Cachet Boutique New York Hotel. CHG will expand its North American presence with Cachet Boutique New York – slated to open in Spring 2017. The new lifestyle boutique hotel will be located in midtown Manhattan, a popular international and local destination on West 42nd Street. Cachet Boutique New York will feature 107 design-focused rooms, outdoor oasis including Jacuzzi and wellness area, a signature restaurant and a supper club. The property will be CHG’s third hotel in the Americas, and first Cachet Boutique in the United States, complementing the seven it currently operates in Asia.

Four Seasons

Four Seasons Hotel London Ten Trinity Square
Four Seasons Hotel London Ten Trinity Square

High-end luxury hotel operator For Seasons expands with a pipeline of more than 50 projects at various stages of planning and development. Four Seasons opened now its 9th hotel in China in Tianjin, and will extend its presence in several key markets in 2017 with the addition of second hotels in both London (Ten Trinity Square) and the Seychelles (Desroches Island), as well as adding a fourth property in Florida (Surfside). The company also plans to open hotels in new destinations including Kuwait, Megève, and Tunis later this year.

Four Seasons has previously announced plans for hotels, resorts and residences in: Montreal, Los Cabos, Bangkok, Madrid, Philadelphia, São Paulo, Bengaluru, and Kuala Lumpur, as well as second properties in both Boston and Tokyo. These developments build on 2016’s momentum, when Four Seasons added nine properties to its global portfolio: Four Seasons Hotel Dubai International Financial Centre, Four Seasons Hotel Bogotá, Four Seasons Hotel Abu Dhabi at Al Maryah Island, Four Seasons Resort O’ahu at Ko Olina, Four Seasons Hotel Jakarta, Four Seasons Hotel New York Downtown, Four Seasons Hotel Kyoto, Four Seasons Resort Anguilla, and Four Seasons Resort The Nam Hai, Hoi An, Vietnam. Four Seasons also introduced the first private island experience in the company’s portfolio – Four Seasons Private Island Maldives at Voavah, Baa Atoll – the world’s only exclusive-use UNESCO hideaway located in a World Biosphere Reserve.

In Choice’s expanding upscale segment, the Cambria hotels & suites brand continues to enter more major markets with groundbreakings and grand openings in Philadelphia, Pa., two projects in Chicago, Nashville, Tenn. and New York’s Times Square. The upscale Ascend Hotel Collection brand, the world’s first and largest global portfolio of best-in-class distinctive independent hotels and resorts, continued its dynamic growth in 2016, gaining more than 30 new member hotels in the United States alone, including San Francisco, Atlanta, and Virginia Beach, Va. The Ascend Hotel Collection enables independent hoteliers to plug into industry leading technology, robust distribution channels and a rapidly expanding loyalty program. In 2016, Ascend also welcomed hotels in highly desirable destinations across the U.S., including Salt Lake City, New York and Memphis, Tenn., as well as internationally in places such as the Bahamas, Ecuador, Great Britain, France, Turkey, Norway, Finland, Sweden, Australia and New Zealand.

Accor’s high-end luxury brand Fairmont will operate historic Century Plaza Hotel, located in the heart of Century City in Los Angeles. After a total renovation, re-opening is scheduled for 2018. The approximately $2.5 billion mixed-use redevelopment project includes approximately 394 guestrooms and 63 branded residences within the original iconic tower, along with two new 46-story luxury residential towers with 290 luxury residences, plus approximately 100,000 square feet of boutique high-street shopping and expanded parking facilities. With more than 70 hotels worldwide, Fairmont continues to expand globally with recent openings including Fairmont Quasar Istanbul, Fairmont Chengdu in Western China and Fairmont Fujairah in the Middle East. New luxury hotels scheduled to open later in 2017 include Fairmont Amman in Jordan, Fairmont Riyadh in Saudi Arabia. Fairmont will also open the newest and most state of the art hotel in Austin, TX later this year.

Novum group
Germany’s fast expanding hotel group Novum, private owned by CEO David Etmenan, announce nearly every week latest deployment projects. In Vienna, a 201-key Holiday Inn hotel – in franchise partnership with IHG – will open in 2019. For business hotel concept Novum style, several new-built hotels are planned in Mannheim, Germany (168 rooms, to open in 2019), Regensburg, Germany (258 rooms, to open in 2017), Stuttgart, Germany (254 rooms and serviced apartments, to open in 2019), Frankfurt, Germany (352 rooms, to open in 2019) and a LikeApart serviced apartment house in Munich (170 apartments, to open early 2019).

Novum group now counts 122 existing and planned hotels in Europe. Last year, turnover jumped by 37% to 114.6 million Euros. GOP raised to 49.8 million Euros (+37%) and Ebitda to 15,9 million Euros (+44%).

Study – Global Luxury Hotels Market To 2020
The global luxury hotel market continued to expand in 2015, supported by growing tourism and a rise in affluent leisure and business travelers. Rising disposable incomes in areas China and India, the presence of rich corporate culture, and a growth in the number of international events are expected to drive the growth in future. China is the largest market for luxury hotels with room supply of 337,212 in 2015, followed by the US and Mexico, while Saudi Arabia was the fastest growing market at a CAGR of 12.5%. With the exception of Turkey, no European countries made into top-10 list in 2015. In terms of occupancy rate, Asian countries led the race with Japan (93.6% in 2015) at the top, followed by Hong Kong and Singapore. Egypt (US$317 in 2015) topped the list in terms of RevPAR, followed by Hong Kong and France.

Key Findings:

  • In 2015, Thailand was the fastest-growing market in terms of number of guests received in luxury hotels in the Asia-Pacific. After registering a steep decline in international arrivals in 2014 following the political unrest in the country, Thailand’s inbound tourism posted strong growth in 2015, as there was stability in the political domain. Inbound trips grew by 20% in 2015. Thailand is also the second-largest market in terms of luxury room supply in Asia.
  • Considering the rise of the tourism in Asia-Pacific, hoteliers are planning to expand in the region. According to United Nations World Tourism Organization (UNWTO), overall, the region saw 277 million international arrivals in 2015 and 9% growth in the first four months of 2016. This growth has led the InterContinental Hotels Group (IHG) Plc to plan expansions in the region by adding new luxury hotel chains, either by developing its own brand or by acquiring a competitor. IHG is considered the third largest hotel operator in Asia after Jin Jiang International Holdings Co. and Accor SA, in terms of the number of rooms, with a total capacity of almost 128,000 rooms.
  • Turkey, the only European market among the top-10 list is expected to record a huge fall in occupancy rates. Occupancy in luxury hotels decreased from 54.3% in 2015 to 47.5% in 2016 due to a decline in international arrivals as the country witnessed a series of terror attacks, rising security concerns after the Arab Spring, and the ongoing crisis in Syria.

Read the full report:

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