Methodology & Terms of Reference
Methodology
Aims of the research:
| i. | To identify all Hotel Groups who operate multiple Hotels Globally |
| ii. | To identify all Hotel Brands that trade multiple Hotels Globally. |
| iii. | To identify all Hotels Globally that are related to either of the above. |
| iv. | To categorise Hotel Groups, Hotel Brands and Hotels according to numerous criteria. |
| v. | Collect, collate, and analyse data on all of the above. |
| vi. | Publish the analysis in usable formats. |
The analysis essentially takes a portfolio perspective, with little or no indication given as to how portfolios are performing.
Parameters of the research:
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To include any Hotels that are traded as part of a Hotel Brand or Hotel Group, providing that the Brand or Hotel Group is affiliated to a minimum of five hotels Globally. |
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There are occasions where some Brands/Hotel Groups do not meet this numerical criterion, but have been included due to their particular circumstances. I.e. When the Brand/Hotel Group trades with three or four hotels but has been identified as the only domestic Brand/Hotel Group in a particular country or is due to open the required number in the next 12 months. |
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All the research and analysis has been conducted by Global Hotel Research Limited. |
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Data has been, and will continue to be, collected from both primary and secondary sources. The Hotel Groups themselves have been given the opportunity to offer data for inclusion and they will be offered the opportunity to verify the accuracy of the data at regular intervals. |
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In the few cases where complete data sets have not been ascertained, the data that has been collated has been included, with more detail to be added as and when it becomes available. |
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As a subscriber to this data service, you are encouraged to contact us with details of Hotel Group/Brands that you may think that ought to be included, and comment on the accuracy of those that have been, in order that updates can be made to ensure the comprehensive nature of the analysis. |
Terms of Reference
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1) Introduction 2) Hotels and their structural relationships with Hotel Groups 2.1) Hotel 2.2) Hotel Groups 2.2.1) Hotel Operator Groups 2.2.2) Hotel Brands 2.2.3) Hotel Brand Owners 2.2.4) Hotel Owners 2.2.5) Hotel Consortia 2.2.6) Master Franchisors 2.2.7) Asset Managers 2.2.8) Parent Company 3) The world, the continents and country locations 4) Market Level 5) Country of origin 6) Scope of operations 7) Location Type 8) Gateway city location 9) Room Categories 9.1) En-Suite 9.2) Non-En-Suite 9.3) Suite 10) Facilities & Services 10.1) Leisure 10.2) Bar 10.3) Restaurant 10.4) Retail 10.5) Conference 10.6) Meeting 10.7) Casino 10.8) Room Service 11) Extended Stay 12) Sub-National Region 13) Hotel Type |
1.) Introduction
Some degree of categorisation and standardisation is required in order to facilitate meaningful analysis and interpretation of the data. The key focus behind all the categorisation and segmentation frameworks developed, is that of sensibility and usability. By no means are these categories, segments and definitions all encompassing, it is acknowledged that there may be some disagreement with some of the allocations of Hotel Operator Groups, Brands and Hotels to particular categories. We welcome discussion on this front via e-mail.
2.) Hotels and their structural relationships with Hotel Groups
The age when hotels were generally designed, developed, run and owned by the same individual or organisation is long past, and a large proportion of the global bedstock is now managed and owned by a number of organisations/individuals who take part in an often complex structural relationship via the hotel. This analysis recognises the need to identify and accredit the roles of the various organisations (Hotel Groups) involved in the management/ownership of a given Hotel. It is with this aim in mind that the following structural relationships have been used in this analysis.
These relationships are driven, and revolve around the Hotel as can be seen in Figure 1.
Figure 1 Hotels and their structural relationships with Hotel Groups- A diagrammatical representation
A Hotel can therefore be viewed as potentially having a relationship with up to eight different 'Hotel Groups', although the individual hotel is only listed once, it is potentially 'affiliated'to an organisation in any of these categories of 'Hotel Group'.
What this structure means is that a Hotel can be accurately represented as:
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Owned by Company A, |
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Operated by Company B, |
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Using Brand C, |
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Owned by Brand Owner D, |
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Distributed by Master Franchisor E. |
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The Hotel may be fully 'internalised' with all of the above functions being fulfilled by one company.
In either case, the hotel is listed once, and its relationships with various groups are identified.
The Hotel itself then consists of numerous features that are often unique. These are generally factual in nature, although some are qualitative. See Figure 2.
Figure 2 The Hotel and its individual components
2.1) Hotel
A hotel is identified as a business, which as its main endeavour offers for rent a minimum of four bedrooms. This needs to be available to the general
public to rent generally on a short-term basis (daily or weekly). The following types of accommodation provision have been excluded from this analysis:
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Guesthouses & Bed & Breakfast establishments (B&B's) |
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Farmhouses |
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Private Clubs & Vacation Investment (Timeshare) properties |
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Hostels |
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Boarding Houses |
Source: Adapted from "The UK Hotel Groups Directory 1998" Clapham, S., Clifton, W.J. & Shah, N.
2.2) Hotel Groups
Hotel groups are organisations responsible, on a continuing basis, for at least one management function in multiple Hotels. Hotel Groups include Hotel Operator Groups, Hotel Owners, Hotel Brands, Hotel Brand Owners, Hotel Asset Managers, Hotel Master Franchisors and Hotel Consortia.
Hotel Groups are owned by a Parent Company.
Please see Figure 3 for a diagrammatical representation of their relationships.
Figure 3 Hotel Groups and their relationship with Hotels and a Parent Company
2.2.1) Hotel Operator Groups
Hotel Operator Groups are directly responsible for the operational management of multiple Hotels and their resultant profitability. They do not need to own a brand or a hotel, their possible relationships with each Hotel are four fold:
| 1. | Owner Operated |
| 2. | Non-Equity Management Contract |
| 3. | Equity Management Contract |
| 4. | Leased |
2.2.2) Hotel Brands
A Hotel Brand is a recognisable trading identity with a clear set of values
which are considered to be relevant to specific customer groups. Hotels can
be deemed 'Branded' by the fact that they can be identified by a name or
symbol, which differentiate it from competitive offerings. However, the
hotels do not need to be all the same. Those hotels that are not eemed to be
'branded' on this basis, are referred to as 'Unbranded'.
If a hotel uses a brand that it does not own (via its Hotel Operator Group) then it is deemed to have a 'Franchise' relationship with the Brand Owner. This may be via a 'Master Franchisor' (see 2.2.6).
Figure 4 Hotel Brands and their relationships with Brand Owners and Hotels
2.2.3) Hotel Brand Owners
These are the organisations that own Hotel Brands which are used by Hotel Operator Groups and Hotel Owners. These Hotel Operators or Hotel Owners may or may not be independent of the Hotel Brand Owner. If they are independent, this relationship is referred to as a 'Franchise', with the Hotel Operator or Hotel Owner being the 'Franchisee', and the Hotel Brand Owner being the 'Franchisor'.
Brand Owners can also be 'Hotel Operator Groups' themselves ie InterContinental Hotel Group which owns the InterContinental and Holiday Inn brands amongst others, but sometimes they are stand alone Brand Owners ie Carlson Hospitality which owns the Radisson and Park Inn brands amongst others but does not actually operate many hotels, they act primarily as a brand developer and even leave the majority of the recruitment and management of Franchisees to regional Master Franchisors who essentially act as their agents.
Brand Owners are essentially 'Franchisors' or 'Franchise Companies' if they allow other organisations to use their Brands.
See 2.2.6 Master Franchisors also
2.2.4) Hotel Owners
Own hotel properties (the 'bricks & mortar') but do not necessarily have anything to do with the hotel operations. The relationship that the 'Owner' has with the 'Hotel Operator' is described in 2.2.1.
They may use an intermediary to 'Asset Manage' the property, see 2.2.7.
2.2.5) Hotel Consortia
Hotel Consortia represent affiliation through membership. These organisations primarily offer membership services to hotels for a fee. They are not directly responsible for the operational management or profitability of their 'Member' Hotels. These groups and their 'Member' hotels are not included in this analysis unless they are part of another 'qualifying group'. Examples of this type of group are Leading Hotels of the World and Best Western.
2.2.6) Master Franchisors
These groups can exist as intermediaries between the Hotel Brand Owner (Franchisor) and the Hotel Operator or Hotel Owner (Franchisee).. This intermediary does not own the brand, but normally has geographically and time based exclusivity to use and/or distribute the brand on behalf of the Hotel Brand Owner. An example of a 'Master Franchisor' is Rezidor, who are the Master Franchisor for Carlson Hospitality's Park Inn, Radisson and Regent brands in Europe & Africa. Rezidor actually use the brands themselves at some of their hotels (a direct Franchise relationship) but also act as a Master Franchisor in growing the brand via other Hotel Operators and Hotel Owners. See Figure 4.
2.2.7) Asset Managers
These intermediary groups are not commonplace in the industry at present, but they do exist and are therefore present in this analysis. They do not own the property or manage its operations, but they manage the process of maximising the property's income via the management of the Management Contract or Leasing process between the Hotel Owner and the Hotel Operator. In some cases, they are exclusively 'Asset Managers', but in others Groups can be 'Operators' of some hotels and 'Asset Managers' of others.
2.2.8) Parent Company
Parent Companies represent the ultimate source of ownership and subsequent control of the various types of Hotel Groups previously listed. They can own various Hotel Groups via subsidiaries.
3.) The World, the Continents and Country locations
Countries have been clustered according to their
geographical location using Collins Atlas of the World Definitions 2006,
principalities have been included and all countries are included in the
analysis.
These groupings are as follows:
| North America | South America | Europe | Asia | Africa | Oceania |
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Anguilla Antigua and Barbuda Aruba Bahamas, The Barbados Belize Bermuda Canada Cayman Islands Clipperton Island Costa Rica Cuba Dominica Dominican Republic El Salvador Greenland Grenada Guadeloupe Guatemala Haiti Honduras Jamaica Martinique Mexico Montserrat Navassa Island Netherlands Antilles Nicaragua Panama Puerto Rico Saint Kitts and Nevis Saint Lucia Saint Pierre and Miquelon Saint Vincent and the Grenadines Trinidad and Tobago Turks and Caicos Islands United States of America Virgin Islands (UK) Virgin Islands (USA) |
Argentina Bolivia Brazil Chile Colombia Ecuador Falkland Islands (Islas Malvinas) French Guiana Guyana Paraguay Peru South Georgia and the South Sandwich Islands Suriname Uruguay Venezuela |
Albania Andorra Armenia Austria Azerbaijan Belarus Belgium Bosnia and Herzegovina Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Faroe Islands Finland France Georgia Germany Gibraltar Greece Guernsey Hungary Iceland Ireland, Republic of Isle of Man Italy Jersey Kazakhstan Kyrgyzstan Latvia Liechtenstein Lithuania Luxembourg Macedonia Malta Moldova Monaco Montenegro Netherlands Norway Poland Portugal Romania Russia San Marino Serbia Slovakia Slovenia Spain Sweden Switzerland Turkey Turkmenistan Ukraine United Kingdom Uzbekistan Vatican City (Holy See) |
Afghanistan Akrotiri Ashmore and Cartier Islands Bahrain, Kingdom of Bangladesh Bhutan Brunei Cambodia, Kingdom of China, Peoples Republic Of Christmas Island Cocos (Keeling) Islands Dhekelia East Timor India Indonesia Iran Iraq Israel Japan Jordan Korea, North Korea, South Kuwait Laos Lebanon Macau Malaysia Maldives Mongolia Myanmar Nepal Oman Pakistan Palau Paracel Islands Philippines Qatar Saudi Arabia, Kingdom of Singapore Spratly Islands Sri Lanka Syria Taiwan Tajikistan Thailand United Arab Emirates Vietnam West Bank Yemen |
Algeria Angola Benin Botswana Burkina Faso Burundi Cameroon Cape Verde Central African Republic Chad Comoros Congo, Democratic Republic of Congo, Republic of the Cote d'Ivoire Djibouti Egypt Equatorial Guinea Eritrea Ethiopia Gabon Gambia, The Ghana Guinea Guinea-Bissau Kenya Lesotho Liberia Libya Madagascar Malawi Mali Mauritania Mauritius Mayotte Morocco Mozambique Namibia Niger Nigeria Reunion, Ile de Rwanda Saint Helena Sao Tome and Principe Senegal Seychelles Sierra Leone Somalia South Africa, Republic of Sudan Swaziland Tanzania Togo Tunisia Uganda Western Sahara Zambia Zimbabwe |
American Samoa Australia Cook Islands Coral Sea Islands Fiji French Polynesia Guam Kiribati Marshall Islands Micronesia, Federated States of Nauru New Caledonia New Zealand Niue Norfolk Island Northern Mariana Islands Papua New Guinea Pitcairn Islands Samoa Solomon Islands Tokelau Tonga Tuvalu Vanuatu Wake Island Wallis and Futuna |
4.) Market Level
When attempting to classify hotels according to their market
level, it has been identified by numerous analysts that there is a distinct
lack of uniformity within countries let alone across the world. The result
being that there is not one global Hotel Classification scheme available or
suitable for this research at present. It is therefore necessary to create
one with the key aim of it being usable. It is without doubt based on some
subjective criteria and is generally based on secondary evidence, however it
serves its purpose in segmenting the differing accommodation market levels.
These are as shown in a linear diagram in Figure 5.
Figure 5 Hotel Market Level
The Market level is at its most basic when it is GHR 1 and progressively increases with GHR 5 representing the highest Market Level.
Examples of Brands found in each of the Market Levels is shown in Figure 6.
| GHR 1 | GHR 2 | GHR 3 | GHR 4 | GHR 5 |
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| Microtel Inn | Comfort Inn | Best Western | Clarion | Conrad |
| Motel 6 | Comfort Suites | Courtyard By Marriott | Crowne Plaza | Fairmont Hotel |
| Econolodge | Country Inn & Suites | Four Points By Sheraton | Hilton Hotels | Four Seasons |
| Red Carpet Inn | Holiday Inn Express | Golden Tulip | InterContinental | Loews |
| Red Roof Inn | Ramada Limited | Holiday Inn | Le Meridien | Luxury Collection |
| Studio 6 | Sleep Inn | Howard Johnson | Marriott | Mandarin Oriental |
| Etap | Ibis | Novotel | Millennium Hotels | Regent Hotels |
| Premier Class | Travelodge (UK) | Quality | Radisson | Ritz-Carlton |
| Thrift Lodge | Campanile | Ramada | Renaissance | St. Regis |
| Sheraton Hotels | Waldorf=Astoria Collection | |||
| Sofitel | ||||
| Swissotel |
5.) Country of Origin
The Country of Origin has been taken as the country in which the Parent Company is legally located. This is an issue of where it is now rather than where it originated from initially. E.g. Holiday Inn would be considered to be from the United Kingdom as it is owned by InterContinental, rather than reflecting its American ancestry.
6.) Scope of Portfolio
Hotel Groups are categorised according to the geographical spread of their hotel portfolio.
1. National
Hotels only present in one country
2. Continental
Hotels present in more than one country but in only one Continent
3. Trans-Continental
Hotels present in more than one Continent, but in less than five Continents
4. Global
Hotels present in five or more Continents
7.) Location Type
The focus is on creating a usable series of typologies in order to enable research. This has been achieved through the use of secondary data, and resulted in a usable series of categorisation but is subjective in nature. With this in mind the following types have been developed:
i. Urban
A major town/city centre hotel
ii. Suburban
Situated outside a major town/city centre, but still within proximity to such centres or a minor/town city location
iii. Airport
Hotels located within an airport development or within a five Kilometre/three mile radius of the airport (Having the name "Airport Hotel" was not deemed adequate if the hotel was in fact 15km from the nearest airport)
iv. Highway
Situated adjacent to a major highway/road/motorway whilst being out of town. The roadside presence indicating the importance of a transient market for the hotel.
v. Rural
Situated out of town, in a rural location which is not a 'resort' location.
vi. Resort
An area that attracts visitors due to its attractions (leisure) and/or natural physical features. Most have been found in coastal
or skiing resorts, although some rural locations have been included in this category where they are 'national parks' etc. Please note, the 'Resort'
location type has no bearing on the Hotel Type.
8.) Gateway City Location
The location of the hotel in terms of the town or city that the hotel is in, is considered to be a Gateway City if it is considered
to be of key importance to that host country's infrastructure. These were identified through secondary sources as those towns or cities with a
relatively high importance in terms of the following:
i. Transportation 'hubs' (Airport cities)
ii. Economic significance
iii. Political significance
9) Room Categories
The bed stock in each Hotel are categorised according to their type. Each hotel has a room count for each of the three room types. These types are as follows
9.1) En-Suite
A Hotel Bedroom with private toilet and bathroom facilities directly accessible from the bedroom.
9.2) Non-En-Suite
A Hotel Bedroom that does not have private toilet and bathroom facilities directly accessible from the bedroom.
9.3) Suite
A Hotel Bedroom that is 'En-Suite' and has a significant additional area dedicated to as 'living' or 'work' space. This could be in the form of a kitchen, lounge area or additional physical rooms. Bedrooms which are 'Villas', 'Apartments' or 'Suites' are included in this category.
10) Facilities & Services
The range of facilities and services at each hotel have been categorised into the following:
10.1) Leisure
This includes any form of leisure facility within the hotel and its grounds that the hotel manages. This includes Swimming Pools, Gyms, Cinemas, bowling, tennis etc. But excludes food & beverage operations.
10.2) Bar
A bar or lounge that serves drinks.
10.3) Restaurant
A food service facility with seating that is open to the public at times other than Breakfast. This does not include vending machines.
10.4) Retail
Any form of retailing that exists within the hotel and its grounds. E.G. Boutiques
10.5) Conference
Separate space (from restaurants etc.) for conference and banqueting for more than 19 people seated.
10.6) Meeting
Separate space (from restaurants etc.) for conference and banqueting for less than 20 people seated.
10.7) Casino
Casino facility within the hotel and its grounds. Electronic gaming machines do not count.
10.8) Room Service
In-room dining offered as a service by the hotel. This does not include 'fast food' delivery service to rooms from firms external to the hotel.
11) Extended Stay
This is a 'Sub-Hotel Type' which indicates hotels which in particular market themselves and offer services to hotel residents on a basis of more than one week. This could be via the pricing policy, ie the minimum payment period is one week, or via the type of rooms on offer ie Apartments with full kitchens etc.
12) Sub-National Region
This geographical category has been included to facilitate analysis by regions within a country. Examples include the States within the USA and individual islands that form part of a country such as Northern Ireland being part of the United Kingdom
13) Hotel Type
This set of categories has been designed to work in conjunction with 'Hotel Market Level' in facilitating more accurate analysis of hotel supply. These categories are not linear in their relationship with each other.
13.1) Traditional Hotel
A Hotel which does not fall into any of the specific categories below
13.2) Apart-Hotel
A Hotel whose rooms are all apartments but offers some level of hotel services.
13.3) Resort Hotel
A Hotel which is a destination in its own right, normally for holidays but also for conferencing.
13.4) Pub/Inn
Generally found in the UK, these are essentially traditional pubs with bedrooms.
13.5) Budget Concept
Generally a 'hard branded', modular build property with relatively limited but standardised services and facilities compared to traditional hotels operating at similar market levels in return for lower prices. 'Limited Service' and 'Select Service' brands generally fall into this category.
13.6) Boutique/Lifestyle Hotels
Chic 'Design' led hotels which trade on their styling rather than their services\and facilities. The 'Boutique' element does not require the hotel to be small in size, and the hotel calling itself 'Boutique' does not automatically confer this category upon it.
13.7) Cruise Ship Hotel
A floating hotel which is not permanently moored and is a destination in its own right rather than a method of transportation ie Ferries.