The genesis of the concepts of "hotel chain" and "hotel chain. Hospitality and international hotel chains International hotel chains list
The largest hotel chains in the world. Statistics and indicators. September 12th, 2012
At the moment, there are more than 16 million hotels in the world, every 4th hotel is part of any network.
It's time to get acquainted with the ten main players in this market.
1.InterContinental Hotels Group (IHG)
In first place is the world's largest hotel chain InterContinental Hotels Group (IHG). For 2012:
- 4480
hotels worldwide (13 of them in Russia)
- 658348
rooms and suites
A British company less than 10 years old that includes the following brands: Crowne Plaza, Candlewood Suites, InterContinental, Hotel Indigo, Staybridge Suites, Holiday Inn, Holiday Inn Express, etc.
In 2011, the network acquired 43 new hotels and 11187 new rooms.
2. Hilton Worldwide
The second place is rightfully occupied by the Hilton Worldwide company, founded in 1919 by Conrad Hilton for 2012 has:
- 3843
hotels (3 hotels in Russia)
- 633238
rooms
The American chain, with almost a century of history, united under its wing such brands as: Waldorf Astoria Hotels and Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, Doubletree (DoubleTree by Hilton), Embassy Suites Hotels, Hilton Garden Inn, Hampton Inn and Hampton Inn & Suites, Homewood Suites by Hilton, Home2 Suites by Hilton and Hilton Grand Vacations.
In 2011, the network acquired 154 hotels and 27,300 rooms.
In third place is Marriott International, an international American chain founded in 1927 by American John Willard Marriott. For 2012:
- 3537
hotels (13 in Russia)
- 617837
rooms
The Marriott International chain owns brands such as: The Ritz-Carlton, Autograph Collection, AC Hotels, Bulgari Hotels & Resorts, EDITION, Fairfield Inn & Suites by Marriott, Residence Inn by Marriott, etc.
In 2011, the network acquired 91 hotels and 15,781 rooms.
4 Wyndham Hotel Group
A group of hotels and resorts located in 67 countries, mainly in the US and Canada. For 2012:
- 7205
hotels (3 hotels in Russia)
- 613126
rooms
The Wyndham Hotel Group was founded in 1981 in the USA and today includes the following brands: Wyndham, Wingate by Wyndham, Hawthorn Suites, Ramada, Knights Inn and AmeriHost Inn, Days Inn, Super 8, Baymont Inn & Suites, Microtel Inns and Suites, Travelodge, Howard Johnson.
In 2011, the chain lost 2 hotels, and the number of rooms increased by 391.
5. Accor
Accor Group is a French company that manages for 2012:
- 4426
hotels (11 hotels in Russia)
- 531714
rooms
In addition to hotels, the company owns chains of restaurants, casinos and travel companies. Brands: Novotel, Mercure, Pullman, Sofitel, Suite Novotel, Formule 1, Ibis, All Seasons, Etap, Motel 6, etc.
In 2011, 197 new hotels and 25,108 rooms were built.
6 Choice Hotels International
American hotel corporation, founded in 1940 for 2012:
- 6023
hotel (no hotels in Russia)
- 502460
rooms
Brands: Brands: Econo Lodge and Rodeway Inn, Quality Inn, MainStay Suites, Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Suburban Extended Stay Hotel, Choice Hotels, Econo Lodge and Rodeway Inn.
For 2011 +61 hotels + 7315 rooms
7 Starwood Hotels and Resorts
The American corporation was founded in 1969, for 2012:
- 1077
hotels (5 hotels in Russia)
- 315346
rooms
Starwood Hotels & Resorts brands: Sheraton Hotels & Resorts, W Hotel and Four Points Hotels by Sheraton, Westin Hotels & Resorts, St. Regis, The Luxury Collection, Le Meridien, Aloft.
In 2011, 36 new hotels and 6646 new rooms were built.
8. Best Western
A British hotel chain whose name was the result of the choice of location for most of the hotels in the chain. For 2012:
- 4078
hotels (2 hotels in Russia)
- 311598
rooms
Just one brand "Best Western". 4078 hotels under one brand, this is worthy of respect.
So, for 2011 + 63 hotels and 4443 rooms.
9.Home Inns (+Motel 168)
The largest Asian hotel chain, after consolidation, has become one of the leaders in the Chinese and world markets. For 2012:
- 1426
hotels (no hotels in Russia)
- 176562
numbers
Main brands: Home Inn, Motel 168.
Huge growth in 2011: + 608 hotels and 82664 rooms
10. Carlson Rezidor Hotel Group
The corporation united five world-class hotel companies. For 2012:
- 1077
hotels
- 165802
numbers.
Brands: Park Inn hotels, Regent International Hotels, Park Plaza Hotels & Resorts, Radisson Hotels & Resorts and Country Inns & Suites By Carlson.
In 2011, we lost one hotel, but the increase in rooms was 741 units.
One of the indicators of the quality of hotel services can be its belonging to a particular hotel chain. A hotel chain (network) is an association of hotel enterprises that have the same level of service, an identical set of services, similar design and approach to customer service. As a rule, one hotel can give an idea of the others included in the chain. Thus, the hotels included in the chain (network) are in a single subordination, comply with a single system of standards for the material and technical base and services. Chains can include hotels in one or more countries, that is, they can be national or international.
Currently, there are more than 100 hotel chains, the total number of rooms of which is about 2,000,000 rooms.
The largest hotel chains include:
§ Best Western;
§ Hilton Corporation;
§ Marriott International;
Which of the listed hotel chains have their own hotels in Moscow? (D)
The formation of hotel chains makes it possible to promote high standards of service to the world tourist market. Each hotel chain can have its own classification based on the purpose, location of the hotel (resort, business hotel, city). The same hotel chain can include hotels of different categories.
There are both associations of inexpensive hotels such as European chains - Formula 1, Etap, Premier Class and others, as well as hotel associations of high-class hotels, such as Sheraton, Forte, Le Meridien and others.
Most of the largest hotel chains are headquartered in the United States, although other countries are also playing a growing role in managing the hotel business.
Hotels that are part of corporate chains are not necessarily the property of these chains. These hotels can have their own owners, and participation in the chain is fixed by lease agreements, franchises, etc. (See below) which gives an advantage when loading, booking. International hotel chains create centralized supply enterprises, training centers, repair factories and the production of furniture and equipment.
What do you see as the negative aspects of creating hotel chains? (D)
Hotel management methods
There are several ways to manage hotels:
The owner of the hotel directly carries out the full management of economic activities;
2. 2. hotels are rented or rented . The lease contract stipulates that the owner of the hotel (the landlord) leases the property to the tenant, who pays the rent payments. The contract specifies the duration of the agreement. Sometimes after the expiration of the term, the hotel is sold to the tenant;
3. 3. management contract . This is an agreement that provides for the transfer by the owner of the hotel of the rights to operate and manage another hotel company. At the same time, managers and other technical personnel are appointed;
4. 4. franchise agreement . It provides for granting the owner of the hotel the right to use the name, trademark of a well-known company, its services for booking hotel rooms, staff training. At the same time, the company receives deductions from the income of the hotel.
Hotels independent– hotels that are not part of hotel chains or other corporate associations.
"Soft" and "hard" blocks
For large tour operators, a common option is to buy out some of the places in the hotel, usually for the season. These numbers become the temporary property of the firm. The hotel sells rooms at lower prices, as we are talking about a large wholesale. There is, of course, a certain risk that tourists will not buy the purchased rooms from the company in a given period.
The buyback option involves various conditions for its implementation, which are specified in the agreement between the hotel company and the travel company, these conditions may be different, but most often they are divided into the conditions of “soft block” and “hard block”, while the block is that part places that are redeemed. What means hard block ? This is the acquisition of a part of the places in the hotel at reduced prices, but with strict conditions regarding the right to dispose of these places. For example, you cannot return hotel rooms, or you must pay a large penalty for refusal. soft block involves the purchase of seats at higher prices, but the conditions, accordingly, will be softer than under a hard block. For example, you can refuse some of the places, or the deadline for refusal is stipulated - 2 weeks before the start of the race.
Hotel chain Marriott International, Inc.
The hotel chain located in the United States of America Marriott International is considered the largest international organization in the world. According to statistics compiled by the company's specialists, every fourth tourist in the United States chooses a Marriott International hotel.
John Marriott opened his first own hotel in 1957. The hotel was named Twin Bridges Marriott Motor Hotel and was located in Arlington (Virginia). The founder assumed that his business would be inherited by his son and eventually made him the manager.
In 1964, the organization was renamed the Marriott Corporation. New chain hotels with a certain set of services appeared, which at the turn of the eighties and nineties took a position in three sectors of the US tourist market: managed a group of hotels with a full range of services (Marriott suites), economy class hotels (Residence Inn) and a complex of inexpensive roadside hotels ( Fairfield Inn.
In the first year of the 90s, Marriott Corp. included in its composition several dozen enterprises abroad of America. The management decided to split the corporation into two firms, Marriott International (control of hotels and real estate) and Host Marriott (real estate transactions and supply of products). Subsequently, this contributed to the active promotion of Marriott International in the international travel services market.
Remark 1
It should be noted that there are now 2,000 owned and franchised businesses in 50 US states and 57 overseas, with a total of 356,000 rooms and 4,200 timeshare villas.
Room reservations at the enterprises of the hotel chain are made through the international reservation system (GDS) developed by the company or via the Internet. In 1999, it increased the production of services under the code name "Quality Assurance Group", assisting the hotels of the chain to implement advanced management methods and reduce costs.
Accor Group and Holiday Inn businesses
The Accor international hotel chain has expanded to 3,500 hotels in 90 countries over the 40 years of its existence. The corporation began its activities with assistance in the development of transport services in the suburbs of the French city of Lille. The first hotel of the future Novotel chain was opened in 1967 in close proximity to the airport and the motorway.
The organization is engaged in the construction of its own hotels, concludes lease agreements with existing ones, opens joint ventures, cooperates with hotels under a franchise agreement, and so on.
The first Holiday Inn opened on Summer Avenue in Memphis, Tennessee in 1953. The venture was in great demand, and Wilson built three more hotels - one on each of the roads leading to Memphis. In 1980, Kemmons Wilson was removed from his post as chairman of the board of directors. And in 1990, the Holiday Inn chain was completely transferred to the possession of the British beer concern Basso. This circumstance contributed to the active promotion of Holiday Inn on the European market. Today the hotel chain consists of 2,700 hotels (450,000 rooms) located in more than 90 countries.
Hilton Hotels and Forte Hotel Group hotel chains
Hilton Hotels was founded in 1919 and takes its name from the name of the owner. It was transformed in 1946 into the Hilton Hotels Corporation. The main activity of the corporation was major real estate transactions, including hotels.
At the beginning of 2000, Hilton Hotels Corporation owned 141 hotels, managed 185 hotels, 74 and 1352 under leasing and franchise conditions, respectively.
Remark 2
It should be noted that the English organization Forte Hotel Group is the best hotel chain in Great Britain and Europe in the last two years (over 440 hotels in 55 countries).
It is now owned by the large hotel industry operator Granada Group Pic. Before the transfer of the organization, there were long litigations between the executive director of Forte, Sir Rocco Forte, and the owners of the Granada Group.
In 1995, the company buys the Le Meridien complex of enterprises. Having earned the opportunity to enter the markets of the Asia-Pacific region, Forte has acquired a high investment attractiveness.
Hyatt Hotels
The first Hyatt hotel appeared in 1957. Within a decade, Hyatt hotels had taken over the entire West Coast travel market.
At the present stage, the Hyatt brand includes 215 hotels, provides luxury hotel services and high-level service.
The main consumers are tourists traveling for business purposes. In order to attract customers with different needs, Hyatt divides its businesses by range of services.
- Hyatt Regency Hotels. The hotels are located in the city's business centers and correspond to the "five-star" category. The main product of the corporation.
- Hyatt Resorts. Leisure accommodation establishments. They are located in the most attractive natural places and provide a wide range of recreational services.
- The Park Hyatt Hotels. Small luxury hotels designed in European style. The main consumers of services are tourists who prefer privacy and individual service.
- The Grand Hyatt Hotels. Located in the most prestigious and attractive areas and designed for both leisure and business tourists.
Remark 3
The hallmark of the corporation is effective management, the basic principles of which have been preserved from the moment the first hotel appeared to the present day.
Integration processes in the hotel industry are caused by an objective need:
Ensuring stable loading of the hotel. Therefore, each hotel chain is based on its own booking system, focused on the priority loading of the hotels included in the chain. However, it should be emphasized that the hotel booking system itself is subject to integration processes (hotel booking systems owned by major airlines, as well as hotel booking systems owned by independent consortiums). The inclusion of electronic booking systems in such systems is expensive and beyond the power of an independent hotel;
Formation of high-quality hotel services, which depends on a number of factors: interior design, equipment quality, staff qualifications and ensuring the safety of residents and their property. Therefore, all leading hotel associations have their own standards and standards for equipping all hotel premises, as well as technology and service standards. In order to ensure that hotels comply with accepted norms and equipment standards, hotels are going to create not only powerful centralized supply organizations, but also specialized enterprises for the production and repair of equipment and furniture.
Thus, the formation of global hotel chains is an objective evolutionary process due to the development of the hospitality industry in the context of globalization and transnationalization of the economy.
The hotel chain as a form of business arose in the United States during the years of the end of World War II, the pioneers in this were the Statler Group, Hilton and Sheraton. The growth in hotel construction has led to a concentration of hotels owned by individuals or companies. To successfully manage these facilities, the owner first selected the staff himself, determined the pricing policy and sales strategy. Then, as the business develops, the main task of management becomes the standardization of processes, which allows replicating the effective solutions found. As a result, the processes of managing and owning hotels began to diverge: those who had this business went successfully began to increase its volume, including at the expense of less successful colleagues, creating the first hotel chains or chains.
A hotel (operating) chain (network) is a group of enterprises (two or more) carrying out a collective business and being under the direct control of the chain management. Its basic principle is the use of a brand image to promote a hotel product in the domestic and foreign markets. This implies a qualitatively new stage in the development of the hotel offer, arising, like any qualitative change, on the basis of a significant quantitative growth. As hotels evolved from a lifelong business of an individual owner to a form of asset and commercial real estate, there was a need for professional management of their associations, and not just a separate accommodation facility.
International chaining suggests that hotels are taking steps to improve their competitiveness. Well-known corporations have developed rules and standards that ensure the originality of the style and scenario of customer service for all its hotels.
In general, the main characteristics of chains are as follows:
Similarity in territorial location; unity of style (architecture and interior); unity of designations and external information;
- spacious and functional hall; unity and speed of registration of clients; rooms designed for "private travelers";
-breakfast "buffet"; availability of a conference room; flexible system of tariffs; unified management, marketing and communications service.
According to the World Tourism Organization, there are 16 million hotels in the world, and 25% of them belong to hotel chains.
The process of increasing the importance of hotel chains in the management of the global hotel industry is characterized by a significant contradiction: on the one hand, the leading hotel chains operating in many countries are becoming larger; on the other hand, an increasing number of countries are creating their own hotel chains that successfully compete with international monopolies.
Hotel chains unite not only hotels owned by a particular chain, but also included in them on a franchise basis (at present, approximately 80% of hotels are included in the chain precisely on a franchise basis). The group of leaders among countries by the presence of national hotel chains includes, in addition to the USA, Japan, Great Britain, Germany, China, Hong Kong, France, Singapore.
Thus, the evolutionary development of the world hotel industry in the context of globalization has led to the transition to new forms of economic organization with elements of cooperation and integration. The creation and rapid expansion of global hotel chains is an objective process that will continue in the future. The hotel chains are based on the system of collective business, which is under the direct control of the chain management. Members of the hotel chain are united through common norms, rules, standards, style, forms of management and business. The creation of hotel chains allows an enterprise to gain advantages over single enterprises, due to: economies of scale; increasing investment opportunities; familiarization with world brands; unification of booking, provision and information systems; continuous improvement in the quality of service.
2.1 World hotel chains.
Hotel chains are associations of hotels operating under a management contract. Such a contract is concluded between the owner of a particular hotel and a company providing management services. Often the same company manages a large number of hotels.
The hotel is recognized as the most common means of accommodation in the world practice.
Depending on the features of management, hotels can represent. Separate enterprises or form hotel chains.
Since the 1990s, the hotel industry has been characterized by an intensification of mergers and acquisitions. There is a rapid growth of hotel corporations, an increase in the number of franchise agreements concluded, and the unification of separate hotels into consortiums. Labor productivity in hotel chains (consisting of 6 or more hotels) is approximately 50% higher than in stand-alone hotels. First of all, this is due to the use of chains of standard forms of work organization and cost savings due to the scale of activities in such areas as brand promotion, procurement of necessary resources and professional development of personnel.
Only for the period from 1995 to 1999. 6 of the leading hotel chains have changed names and composition of hotels, and many former bitter competitors have entered into partnership agreements with each other.
According to the American Hotel and Motel Association (AH&MA), there are currently only 11 hotel groups in the world, whose total room stock exceeds 100,000 rooms. These are Cendant Corporation (USA), Bass Hotels & Resorts (UK), Choice Hotels (USA), Best Western (USA), Marriott International (USA), Starwood Hotels & Resorts (USA), Promus Hotel Corporation (USA), Assog ( France), Patriot American Hospitality Inc. (USA), Hilton Corporation (USA), Carlson Hospitality Group (USA). In turn, each of these groups includes several hotel chains. (14)
The way hotel groups manage their subsidiaries is not the same, from being almost completely self-sufficient, as Bass or Starwood do, to the rigid hierarchies that exist in groups like Marriott and Accord. The most difficult problem in managing a huge hotel conglomerate is coordinating the work of the staff involved in the sale and reservation of rooms.
The location of the headquarters of the vast majority of the world's major hotel groups in the United States reflects the situation that has developed in the hotel industry at the present time, namely:
70% of all US hotels belong to one or another hotel chain, while in the UK this figure is 20%, in Germany -10%, in Russia -15%. (15)
Consolidation is also beneficial because it leads to increased sales and the creation of a permanent clientele. The latter creates confidence that no matter in which city and on which continent the hotel belonging to the chain chosen by the client is located, he will be provided with a pre-known set of services, the quality of which meets certain standards.
However, not all hotel owners want to give up their independence, but at the same time, in order to maintain their position in the market, they need to enter into cooperation with other hotels. The degree of this cooperation can be different in terms of organizational and financial integration. Hotels united in such consortiums as, for example, Leading Hotels of the World, SRJS World Hotels, Preferred Hotels & Resorts Worldwide, retain their full independence, but cooperate for the purposes of joint marketing, sales and reservations. In addition, they have developed their own, very strict customer experience criteria.
Another trend in the reorganization of hotel chains is segmentation. It represents the presence of hotels of various categories belonging to the same hotel chain. The purpose of segmentation is to adapt hotel enterprises to the needs and financial capabilities of various categories of customers. For example, the Bass group clearly segments its hotels: while Inter-Continental hotels are 5-star and Holiday Inn 4-star, Crown Plaza fills the gap between them and is positioned as 4-star plus. (10)
The next trend in the global hotel market is the emergence of specialized hotels that meet the latest market changes and progressive economic development. Economic development led to the formation of business hotels, congress hotels, hotels for long-term residence (apartment-type hotels or Apartment), and the advances in medicine created a need for hotel houses for the elderly and the disabled.
One of the main trends in the global hotel market is the strengthening of the role of service quality management. Quality becomes the most significant component of competitiveness, because. guarantees the safety and environmental friendliness of a product or service - requirements that are becoming increasingly important in today's world.
Also, the specificity of modern relationships between counterparties includes an assessment of the supplier's existing quality management system, which acts for him as a guarantee of the stability of the quality of the goods or services provided. In the field of hotel business, the complexity of the formation of quality systems increases due to its organization and functioning. First of all, this is an objective contradiction between the individualization of services, their differentiation and the need to bring them to standards. Secondly, the consumer of the hotel service participates in the control and evaluation of its quality not in a one-time manner, but constantly, i.e. the consumer of the service participates in the process of providing the service and can influence it. In world practice, it is also common to unite hotels in professional associations, organizations and unions. Despite the peculiarities of the development of national economies, organizations have the same goals of creation, functions, structure. Some of them (like AH&MA) are commercial in nature.
International hotel associations, in fact, consolidate the problems of national organizations, contribute to their successful resolution, make appropriate changes to international legislation in the hotel and tourism sector, initiate international events dedicated to the hotel industry, and participate in international social and cultural programs.
In world practice, organizations unite hospitality business entities at different levels: national (organizations such as AH & MA - American Hotel & Motel Association, BHS - British Hospitality Association, DEHOGA Deutscher Hotel - Und Gaststattenverband, etc.) and international (IHRA - International Hotel & Restaurant Association, HOTREC - Confederation of the National Associations of Hotels, Restaurants, Cafe & Similar Establishments in the European Union & European Economic Area), etc. At the same time, national organizations, as a rule, are part of international organizations, thereby creating a powerful single block of influence on the international and national tourist and hotel markets. (5)
International experience shows that the demand for hotel services increases along with the income level of the population, and the growth in the share of chain hotels leads to increased competition among isolated hotels, absorbs the latter or forces them to increase production efficiency. Three-star hotels have become the most "unreliable" means of accommodation. According to the existing classification, this category includes both quite comfortable hotels owned by commercial structures, and hotels close to the “two” and “one star” categories (state and municipally owned hotels, departmental hotels). The latter, as well as some non-categorical hotels, as a rule, are teetering on the verge of bankruptcy. The hopelessly outdated number of rooms, technical and communal equipment complicate privatization and bankruptcy procedures due to the need for serious capital investments and the presence of illiquid assets.
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