Tag: Chairman – Hotels & Hospitality Group

Briefing: A surge in hotel investment

Posted on by Guy Lean

2015 has been a great year for hotel investment so far. There has been renewed positivity in the market and a rise in portfolio transactions. According to JLL, the UK has led transactions in the EMEA, with deals up 172% in the first half of 2015 compared to 2014. Overall in the EMEA region half year transaction volumes are up 85%. The US has also seen a rise in investment with transaction volume nearly doubling in the first half of 2015.

In this briefing industry insiders discuss the state of hotel investment, and who is investing in what:

JLL have reported that significant amounts of investments into the EMEA region has come from China and North America. Chinese investment has amounted to $1.9 billion so far this year.  Investment from North American private equity funds, which has reached $1.1 billion, has accounted for 57% of regional UK portfolio deals.

International investment into America amounted to $6.6 billion in the first half of 2015 representing nearly 30% of deal volume and showing a marked increase on 2014.

Some portfolio moves this year have included Accor’s restructuring of HotelInvest’s assets, which has involved the sale of 29 hotels in Germany and the Netherlands under a €234 million sales & Franchise back agreement in April, and the sale of seven hotels in the UK and Ireland for €38 million in May.

In June, Ashford Trust announced its intention to sell a 23 select-service hotel portfolio. And last month Pinnacle Hotel Management (PHM) sold a 15-hotel, select-service portfolio comprised of Marriott- and Hilton-branded hotels for $203 million to the Blackstone Group.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do so here. It’s free.

Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Understanding brand power in a new landscape

Posted on by Guy Lean

What does it mean to be a hospitality brand in 2015? Travellers today will not be as influenced by a brand name as they once were when booking accommodation. According to Mintel Group, 48% of guests will not visit the hotel’s website before arrival, and 79% see price as a key factor when choosing a hotel. However strong brands in the industry are still growing.

These videos look at the way new brands are developing, how powerful brands are staying relevant, and what might happen with brands in the future:

In todays’ hospitality landscape technology has changed distribution forever, given independents more power and has sparked the emergence of new brands.

There is some debate over the possible consolidation of brands in the future as discussed in the above videos.  At the moment more and more brands are being created, often within existing brands, to serve new markets.

In other industries the power of the brand is still immensely strong particularly in the technology industry. Apple currently tops Forbes list of The World’s most Valuable Brands, with a brand value of $145.3 Billion. Microsoft, Google and Coca-Cola and IBM make up the rest of the top 5.

The MKG group’s Hospitality database shows that in January 2015, IGH was the top ranked Hotel Brand. It had 710 295 rooms and a growth of 3.4% on 2014. Hilton and Marriot were ranked 2nd and 3rd and showed growth of 5.4% and 5.9% respectively.

A survey from BDRC found that 42% of European leisure travellers rate review sites as important when selecting a hotel for leisure. In comparison 36% rate hotel brands and important. BDRC also found that leading brands can still command a higher price than unknown brands, with an uplift of €26.98 in the luxury market.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do so here. It’s free.

Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

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