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The Global Luxury Hotels Market – Key Trends and Opportunities to 2017

© Timetric. This product is licensed and is not to be photocopied Published: September 2013

The Global Luxury Hotels Market – Key

Trends and Opportunities to 2017

Technological Changes and New Demand Trends to Drive

Growth

Report Code: TT0107MR

Publication Date: September 2013

www.timetric.com

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EXECUTIVE SUMMARY



1 EXECUTIVE SUMMARY

The global luxury travel market recorded strong growth in 2011–2012, after a significant decline in

2009 and modest recovery in 2010. One of the key drivers of this growth was the increasing number of

high net worth individuals (HNWIs) globally, primarily in the BRIC countries (Brazil, Russia India and

China). This growth in global luxury travel is expected to continue over the forecast period to 2017.

Global luxury hotels record revival in demand after the financial crisis

Use of mobile technology to make luxury hotel companies operationally efficient

New customer demand to drive growth

Global hotel construction outlook is improving, led by a revival in the US hospitality industry

BRIC countries to drive growth in the global hospitality industry

TABLE OF CONTENTS



TABLE OF CONTENTS

1 Executive Summary ............................................................................................................................. 2

2 Global Luxury Travel Market – Key Trends and Issues..................................................................... 10

2.1 Global Luxury Hotel Market – Key Trends and Issues .................................................................................................................11

2.2 Global Luxury Hotels Market – SWOT .........................................................................................................................................13

2.2.1 Strengths .......................................................................................................................................................................................................... 13

2.2.2 Weaknesses ..................................................................................................................................................................................................... 14

2.2.3 Opportunities .................................................................................................................................................................................................... 15

2.2.4 Threats .............................................................................................................................................................................................................. 16

2.3 Global Hotels Construction Market – Trends and Issues .............................................................................................................17

2.4 Global Luxury Hotel KPIs – the Americas ....................................................................................................................................18

2.4.1 The Americas – number of luxury hotel establishments (2008–2012) ........................................................................................................... 19

2.4.2 The Americas – number of luxury hotel establishments (2013–2017) ........................................................................................................... 20

2.4.3 The Americas – number of luxury hotel rooms (2008–2012) ......................................................................................................................... 21

2.4.4 The Americas – number of luxury hotel rooms (2013–2017) ......................................................................................................................... 22

2.4.5 The Americas – luxury room occupancy rate (2008–2012) ............................................................................................................................ 23

2.4.6 The Americas – luxury room occupancy rate (2013–2017) ............................................................................................................................ 24

2.4.7 The Americas – average revenue per available luxury room (2008–2012) ................................................................................................... 25

2.4.8 The Americas – average revenue per available luxury room (2013–2017) ................................................................................................... 26

2.4.9 The Americas – average revenue per occupied luxury room (2008–2012) ................................................................................................... 27

2.4.10 The Americas – average revenue per occupied luxury room (2013–2017) ................................................................................................... 28

2.4.11 The Americas – average total revenue per available luxury room (2008–2012) ........................................................................................... 29

2.4.12 The Americas – average total revenue per available luxury room (2013–2017) ........................................................................................... 30

2.5 Global Luxury Hotels KPIs – Asia-Pacific.....................................................................................................................................31

2.5.1 Asia-Pacific – number of luxury hotel establishments (2008–2012) .............................................................................................................. 32

2.5.2 Asia-Pacific – number of luxury hotel establishments (2013–2017) .............................................................................................................. 33

2.5.3 Asia-Pacific – number of luxury hotel rooms (2008–2012) ............................................................................................................................. 34

2.5.4 Asia-Pacific – number of luxury hotel rooms (2013–2017) ............................................................................................................................. 35

2.5.5 Asia-Pacific – luxury room occupancy rate (2008–2012) ............................................................................................................................... 36

2.5.6 Asia-Pacific – luxury room occupancy rate (2013–2017) ............................................................................................................................... 37

2.5.7 Asia-Pacific – average revenue per available luxury room (2008–2012)....................................................................................................... 38

2.5.8 Asia-Pacific – average revenue per available luxury room (2013–2017)....................................................................................................... 39

2.5.9 Asia-Pacific – average revenue per occupied luxury room (2008–2012) ...................................................................................................... 40

2.5.10 Asia-Pacific – average revenue per occupied luxury room (2013–2017) ...................................................................................................... 41

2.5.11 Asia-Pacific – average total revenue per available luxury room (2008–2012)............................................................................................... 42

2.5.12 Asia-Pacific – average total revenue per available luxury room (2013–2017)............................................................................................... 43

2.6 Global Luxury Hotels KPIs – Europe ............................................................................................................................................44

2.6.1 Europe – number of luxury hotel establishments (2008–2012) ...................................................................................................................... 45

2.6.2 Europe – number of luxury hotel establishments (2013–2017) ...................................................................................................................... 46

2.6.3 Europe – number of luxury hotel rooms (2008–2012) .................................................................................................................................... 47

2.6.4 Europe – number of luxury hotel rooms (2013–2017) .................................................................................................................................... 48

2.6.5 Europe – luxury room occupancy rate (2008–2012) ....................................................................................................................................... 49

2.6.6 Europe – luxury room occupancy rate (2013–2017) ....................................................................................................................................... 50

2.6.7 Europe – average revenue per available luxury room (2008–2012) .............................................................................................................. 51

2.6.8 Europe – average revenue per available luxury room (2013–2017) .............................................................................................................. 52

2.6.9 Europe – average revenue per occupied luxury room (2008–2012) .............................................................................................................. 53

2.6.10 Europe – average revenue per occupied luxury room (2013–2017) .............................................................................................................. 54

2.6.11 Europe – average total revenue per available luxury room (2008–2012) ...................................................................................................... 55

2.6.12 Europe – average total revenue per available luxury room (2013–2017) ...................................................................................................... 56

2.7 Global Luxury Hotels KPIs – Middle East and Africa ...................................................................................................................57

2.7.1 The Middle East and Africa – number of luxury hotel establishments (2008–2012) ..................................................................................... 58

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2.7.2 The Middle East and Africa – number of luxury hotel establishments (2013–2017) ..................................................................................... 59

2.7.3 The Middle East and Africa – number of luxury hotel rooms (2008–2012) .................................................................................................... 60

2.7.4 The Middle East and Africa – number of luxury hotel rooms (2013–2017) .................................................................................................... 61

2.7.5 The Middle East and Africa – luxury room occupancy rate (2008–2012) ...................................................................................................... 62

2.7.6 The Middle East and Africa – luxury room occupancy rate (2013–2017) ...................................................................................................... 63

2.7.7 The Middle East and Africa – average revenue per available luxury room (2008–2012) ............................................................................. 64

2.7.8 The Middle East and Africa – average revenue per available luxury room (2013–2017) ............................................................................. 65

2.7.9 The Middle East and Africa – average revenue per occupied luxury room (2008–2012) ............................................................................. 66

2.7.10 The Middle East and Africa – average revenue per occupied luxury room (2013–2017) ............................................................................. 67

2.7.11 The Middle East and Africa – average total revenue per available luxury room (2008–2012) ..................................................................... 68

2.7.12 The Middle East and Africa – average total revenue per available luxury room (2013–2017) ..................................................................... 69

3 Global Luxury Hotel Profiles ............................................................................................................. 70

3.1 Company Profile: Shangri-La Asia Ltd .........................................................................................................................................70

3.1.1 Shangri-La Asia Ltd – company overview ....................................................................................................................................................... 70

3.1.2 Shangri-La Asia Ltd – business description .................................................................................................................................................... 70

3.1.3 Shangri-La Asia Ltd – main services and brands ........................................................................................................................................... 71

3.1.4 Shangri-La Asia Ltd – history ........................................................................................................................................................................... 71

3.1.5 Shangri-La Asia Ltd – SWOT analysis ............................................................................................................................................................ 72

3.1.6 Shangri-La Asia Ltd – strengths ...................................................................................................................................................................... 72

3.1.7 Shangri-La Asia Ltd – weaknesses ................................................................................................................................................................. 73

3.1.8 Shangri-La Asia Ltd – opportunities ................................................................................................................................................................ 73

3.1.9 Shangri-La Asia Ltd – threats .......................................................................................................................................................................... 73

3.1.10 Shangri-La Asia Ltd – key competitors ............................................................................................................................................................ 74

3.1.11 Shangri-La Asia Ltd – key employees ............................................................................................................................................................. 75

3.2 Company Profile: InterContinental Hotels Group Plc ...................................................................................................................76

3.2.1 InterContinental Hotels Group Plc – company overview ................................................................................................................................ 76

3.2.2 InterContinental Hotels Group Plc – business description ............................................................................................................................. 76

3.2.3 InterContinental Hotels Group Plc – main services and brands ..................................................................................................................... 78

3.2.4 InterContinental Hotels Group Plc – history .................................................................................................................................................... 78

3.2.5 InterContinental Hotels Group Plc – SWOT analysis ..................................................................................................................................... 79

3.2.6 InterContinental Hotels Group Plc – strengths ................................................................................................................................................ 79

3.2.7 InterContinental Hotels Group Plc – weaknesses........................................................................................................................................... 80

3.2.8 InterContinental Hotels Group Plc – opportunities .......................................................................................................................................... 80

3.2.9 InterContinental Hotels Group Plc – threats.................................................................................................................................................... 81

3.2.10 InterContinental Hotels Group Plc – key competitors ..................................................................................................................................... 82

3.2.11 InterContinental Hotels Group Plc – key employees ...................................................................................................................................... 82

3.3 Company Profile: Hyatt Hotels Corporation .................................................................................................................................83

3.3.1 Hyatt Hotels Corporation – company overview ............................................................................................................................................... 83

3.3.2 Hyatt Hotels Corporation – business description ............................................................................................................................................ 83

3.3.3 Hyatt Hotels Corporation – main services and brands ................................................................................................................................... 85

3.3.4 Hyatt Hotels Corporation – history ................................................................................................................................................................... 85

3.3.5 Hyatt Hotels Corporation – SWOT analysis .................................................................................................................................................... 86

3.3.6 Hyatt Hotels Corporation – strengths .............................................................................................................................................................. 86

3.3.7 Hyatt Hotels Corporation – weaknesses ......................................................................................................................................................... 87

3.3.8 Hyatt Hotels Corporation – opportunities ........................................................................................................................................................ 87

3.3.9 Hyatt Hotels Corporation – threats .................................................................................................................................................................. 88

3.3.10 Hyatt Hotels Corporation – key competitors.................................................................................................................................................... 88

3.3.11 Hyatt Hotels Corporation – key employees ..................................................................................................................................................... 89

3.4 Company Profile: Starwood Hotels & Resorts Worldwide, Inc. ....................................................................................................90

3.4.1 Starwood Hotels & Resorts Worldwide, Inc. – company overview ................................................................................................................. 90

3.4.2 Starwood Hotels & Resorts Worldwide, Inc. – business description .............................................................................................................. 90

3.4.3 Starwood Hotels & Resorts Worldwide, Inc. – main services and brands ..................................................................................................... 91

3.4.4 Starwood Hotels & Resorts Worldwide, Inc. – history .................................................................................................................................... 91

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3.4.5 Starwood Hotels & Resorts Worldwide, Inc. – SWOT analysis ...................................................................................................................... 92

3.4.6 Starwood Hotels & Resorts Worldwide, Inc. – strengths ................................................................................................................................ 93

3.4.7 Starwood Hotels & Resorts Worldwide, Inc. – weaknesses ........................................................................................................................... 93

3.4.8 Starwood Hotels & Resorts Worldwide, Inc. – opportunities .......................................................................................................................... 93

3.4.9 Starwood Hotels & Resorts Worldwide, Inc. – threats .................................................................................................................................... 94

3.4.10 Starwood Hotels & Resorts Worldwide, Inc. – key competitors ..................................................................................................................... 95

3.4.11 Starwood Hotels & Resorts Worldwide, Inc. – key employees....................................................................................................................... 95

3.5 Company Profile: Marriott International, Inc. ................................................................................................................................96

3.5.1 Marriott International, Inc. – company overview ............................................................................................................................................. 96

3.5.2 Marriott International, Inc. – business description........................................................................................................................................... 96

3.5.3 Marriott International, Inc. – main services...................................................................................................................................................... 97

3.5.4 Marriott International, Inc. – history ................................................................................................................................................................. 98

3.5.5 Marriott International, Inc. – SWOT analysis................................................................................................................................................... 99

3.5.6 Marriott International, Inc. – strengths ............................................................................................................................................................. 99

3.5.7 Marriott International, Inc. – weaknesses ........................................................................................................................................................ 99

3.5.8 Marriott International, Inc. – opportunities ..................................................................................................................................................... 100

3.5.9 Marriott International, Inc. – threats ............................................................................................................................................................... 100

3.5.10 Marriott International, Inc. – key competitors ................................................................................................................................................ 101

3.5.11 Marriott International, Inc. – key employees ................................................................................................................................................. 101

3.6 Company Profile: Hilton Worldwide, Inc. ....................................................................................................................................102

3.6.1 Hilton Worldwide, Inc. – company overview.................................................................................................................................................. 102

3.6.2 Hilton Worldwide, Inc. – business description ............................................................................................................................................... 102

3.6.3 Hilton Worldwide, Inc. – main services and brands ...................................................................................................................................... 103

3.6.4 Hilton Worldwide, Inc. – history ..................................................................................................................................................................... 103

3.6.5 Hilton Worldwide, Inc. – SWOT analysis ....................................................................................................................................................... 104

3.6.6 Hilton Worldwide, Inc. – strengths ................................................................................................................................................................. 104

3.6.7 Hilton Worldwide, Inc. – weaknesses ............................................................................................................................................................ 105

3.6.8 Hilton Worldwide, Inc. – opportunities ........................................................................................................................................................... 105

3.6.9 Hilton Worldwide, Inc. – threats ..................................................................................................................................................................... 106

3.6.10 Hilton Worldwide, Inc. – key competitors ...................................................................................................................................................... 106

3.6.11 Hilton Worldwide, Inc. – key employees........................................................................................................................................................ 107

3.7 Company Profile: Accor SA........................................................................................................................................................108

3.7.1 Accor SA – company overview ...................................................................................................................................................................... 108

3.7.2 Accor SA – business description ................................................................................................................................................................... 108

3.7.3 Accor SA – main services and brands........................................................................................................................................................... 109

3.7.4 Accor SA – history .......................................................................................................................................................................................... 109

3.7.5 Accor SA – SWOT analysis ........................................................................................................................................................................... 110

3.7.6 Accor SA – strengths ..................................................................................................................................................................................... 110

3.7.7 Accor SA – weaknesses ................................................................................................................................................................................ 111

3.7.8 Accor SA – opportunities ............................................................................................................................................................................... 111

3.7.9 Accor SA – threats ......................................................................................................................................................................................... 112

3.7.10 Accor SA – key competitors ........................................................................................................................................................................... 113

3.7.11 Accor SA – key employees ............................................................................................................................................................................ 113

3.8 Company Profile: Wyndham Worldwide Corporation .................................................................................................................114

3.8.1 Wyndham Worldwide Corporation – company overview .............................................................................................................................. 114

3.8.2 Wyndham Worldwide Corporation – business description ........................................................................................................................... 114

3.8.3 Wyndham Worldwide Corporation – main services ...................................................................................................................................... 115

3.8.4 Wyndham Worldwide Corporation – history .................................................................................................................................................. 116

3.8.5 Wyndham Worldwide Corporation – SWOT analysis ................................................................................................................................... 117

3.8.6 Wyndham Worldwide Corporation – strengths.............................................................................................................................................. 117

3.8.7 Wyndham Worldwide Corporation – weaknesses ........................................................................................................................................ 118

3.8.8 Wyndham Worldwide Corporation – opportunities........................................................................................................................................ 118

3.8.9 Wyndham Worldwide Corporation – threats ................................................................................................................................................. 119

TABLE OF CONTENTS



3.8.10 Wyndham Worldwide Corporation – key competitors ................................................................................................................................... 119

3.8.11 Wyndham Worldwide Corporation – key employees .................................................................................................................................... 120

3.9 Company Profile: Rezidor Hotel Group AB ................................................................................................................................121

3.9.1 Rezidor Hotel Group AB – company overview .............................................................................................................................................. 121

3.9.2 Rezidor Hotel Group AB – business description ........................................................................................................................................... 121

3.9.3 Rezidor Hotel Group AB – main services and brands .................................................................................................................................. 122

3.9.4 Rezidor Hotel Group AB – history.................................................................................................................................................................. 122

3.9.5 Rezidor Hotel Group AB – SWOT analysis ................................................................................................................................................... 123

3.9.6 Rezidor Hotel Group AB – strengths ............................................................................................................................................................. 123

3.9.7 Rezidor Hotel Group AB – weaknesses ........................................................................................................................................................ 124

3.9.8 Rezidor Hotel Group AB – opportunities ....................................................................................................................................................... 124

3.9.9 Rezidor Hotel Group AB – threats ................................................................................................................................................................. 125

3.9.10 Rezidor Hotel Group AB – key competitors .................................................................................................................................................. 125

3.9.11 Rezidor Hotel Group AB – key employees .................................................................................................................................................... 126

3.10 Company Profile: Choice Hotels International, Inc. ....................................................................................................................127

3.10.1 Choice Hotels International, Inc. – company overview ................................................................................................................................. 127

3.10.2 Choice Hotels International, Inc. – business description .............................................................................................................................. 127

3.10.3 Choice Hotels International, Inc. – main services and brands ..................................................................................................................... 129

3.10.4 Choice Hotels International, Inc. – history ..................................................................................................................................................... 129

3.10.5 Choice Hotels International, Inc. – SWOT analysis ...................................................................................................................................... 130

3.10.6 Choice Hotels International, Inc. – strengths ................................................................................................................................................ 130

3.10.7 Choice Hotels International, Inc. – weaknesses ........................................................................................................................................... 131

3.10.8 Choice Hotels International, Inc. – opportunities .......................................................................................................................................... 131

3.10.9 Choice Hotels International, Inc. – threats .................................................................................................................................................... 132

3.10.10 Choice Hotels International, Inc. – key competitors ...................................................................................................................................... 133

3.10.11 Choice Hotels International, Inc. – key employees ....................................................................................................................................... 133

4 Global Luxury Hotel Markets – BRIC Countries .............................................................................. 134

4.1 The Brazilian Luxury Hotel Market – Key Trends and Issues.....................................................................................................135

4.1.1 Brazil – domestic tourism trends.................................................................................................................................................................... 136

4.1.2 Brazil – inbound tourism trends ..................................................................................................................................................................... 137

4.1.3 Brazil – outbound tourism trends ................................................................................................................................................................... 138

4.2 The Russian Luxury Hotel Market – Key Trends and Issues .....................................................................................................139

4.2.1 Russia – domestic tourism trends.................................................................................................................................................................. 140

4.2.2 Russia – inbound tourism trends ................................................................................................................................................................... 141

4.2.3 Russia – outbound tourism trends ................................................................................................................................................................. 142

4.3 The Indian Luxury Hotel Market – Key Trends and Issues.........................................................................................................143

4.3.1 India – domestic tourism trends ..................................................................................................................................................................... 144

4.3.2 India – inbound tourism trends ...................................................................................................................................................................... 145

4.3.3 India – outbound tourism trends .................................................................................................................................................................... 146

4.4 The Chinese Luxury Hotel Market – Key Trends and Issues .....................................................................................................147

4.4.1 China – domestic tourism trends ................................................................................................................................................................... 148

4.4.2 China – inbound tourism trends ..................................................................................................................................................................... 149

4.4.3 China – outbound tourism trends................................................................................................................................................................... 150

5 Appendix.......................................................................................................................................... 151

5.1 What is this Report About? ........................................................................................................................................................151

5.2 Definitions ..................................................................................................................................................................................151

5.3 Methodology ..............................................................................................................................................................................154

5.4 Contact Timetric .........................................................................................................................................................................156

5.5 About Timetric ............................................................................................................................................................................156

5.6 Timetric’s Services .....................................................................................................................................................................157

5.7 Disclaimer ..................................................................................................................................................................................158

LIST OF TABLES



LIST OF TABLES

Table 1: Shangri-La Asia Ltd, Key Facts ................................................................................................................................................................................... 70 Table 2: Shangri-La Asia Ltd, Main Services and Brands ........................................................................................................................................................ 71 Table 3: Shangri-La Asia Ltd, History ........................................................................................................................................................................................ 71 Table 4: Shangri-La Asia Ltd, Key Employees .......................................................................................................................................................................... 75 Table 5: InterContinental Hotels Group Plc, Key Facts ............................................................................................................................................................ 76 Table 6: InterContinental Hotels Group Plc, Main Services and Brands.................................................................................................................................. 78 Table 7: InterContinental Hotels Group Plc, History ................................................................................................................................................................. 78 Table 8: InterContinental Hotels Group Plc, Key Employees ................................................................................................................................................... 82 Table 9: Hyatt Hotels Corporation, Key Facts ........................................................................................................................................................................... 83 Table 10: Hyatt Hotels Corporation, Main Services and Brands .............................................................................................................................................. 85 Table 11: Hyatt Hotels Corporation, History .............................................................................................................................................................................. 85 Table 12: Hyatt Hotels Corporation, Key Employees................................................................................................................................................................ 89 Table 13: Starwood Hotels & Resorts Worldwide, Inc., Key Facts........................................................................................................................................... 90 Table 14: Starwood Hotels & Resorts Worldwide, Inc., Main Services and Brands ................................................................................................................ 91 Table 15: Starwood Hotels & Resorts Worldwide, Inc., History................................................................................................................................................ 91 Table 16: Starwood Hotels & Resorts Worldwide, Inc., Key Employees ................................................................................................................................. 95 Table 17: Marriott International, Inc., Key Facts ....................................................................................................................................................................... 96 Table 18: Marriott International, Inc., Main Services and Brands ............................................................................................................................................. 97 Table 19: Marriott International, Inc., History ............................................................................................................................................................................ 98 Table 20: Marriott International, Inc., Key Employees ............................................................................................................................................................ 101 Table 21: Hilton Worldwide, Inc., Key Facts............................................................................................................................................................................ 102 Table 22: Hilton Worldwide, Inc., Main Services and Brands ................................................................................................................................................. 103 Table 23: Hilton Worldwide, Inc., History................................................................................................................................................................................. 103 Table 24: Hilton Worldwide, Inc., Key Employees .................................................................................................................................................................. 107 Table 25: Accor SA, Key Facts ................................................................................................................................................................................................ 108 Table 26: Accor SA, Main Services and Brands ..................................................................................................................................................................... 109 Table 27: Accor SA, History ..................................................................................................................................................................................................... 109 Table 28: Accor SA., Key Employees ...................................................................................................................................................................................... 113 Table 29: Wyndham Worldwide Corporation, Key Facts ........................................................................................................................................................ 114 Table 30: Wyndham Worldwide Corporation, Main Services and Brands ............................................................................................................................. 115 Table 31: Wyndham Worldwide Corporation, History ............................................................................................................................................................. 116 Table 32: Wyndham Worldwide Corporation, Key Employees ............................................................................................................................................... 120 Table 33: Rezidor Hotel Group AB, Key Facts ........................................................................................................................................................................ 121 Table 34: Rezidor Hotel Group AB, Main Services and Brands ............................................................................................................................................. 122 Table 35: Rezidor Hotel Group AB., History............................................................................................................................................................................ 122 Table 36: Rezidor Hotel Group AB, Key Employees .............................................................................................................................................................. 126 Table 37: Choice Hotels International, Inc., Key Facts ........................................................................................................................................................... 127 Table 38: Choice Hotels International Inc., Main Services and Brands ................................................................................................................................. 129 Table 39: Choice Hotels International, Inc., History ................................................................................................................................................................ 129 Table 40: Choice Hotels International, Inc., Key Employees .................................................................................................................................................. 133 Table 41: Timetric Global Luxury Hospitality Sector Definitions ............................................................................................................................................. 151

LIST OF FIGURES



LIST OF FIGURES

Figure 1: SWOT Analysis of the Global Luxury Hotels Market ................................................................................................................................................. 13 Figure 2: The Americas – Number of Luxury Hotel Establishments, 2008–2012 .................................................................................................................... 19 Figure 3: The Americas – Number of Luxury Hotel Establishments, 2013–2017 .................................................................................................................... 20 Figure 4: The Americas – Number of Luxury Hotel Rooms, 2008–2012 ................................................................................................................................. 21 Figure 5: The Americas – Number of Luxury Hotel Rooms, 2013–2017 ................................................................................................................................. 22 Figure 6: The Americas – Luxury Room Occupancy Rate (%), 2008–2012 ............................................................................................................................ 23 Figure 7: The Americas – Luxury Room Occupancy Rate (%), 2013–2017 ............................................................................................................................ 24 Figure 8: The Americas – Average Revenue per Available Luxury Room (US$), 2008–2012 ............................................................................................... 25 Figure 9: The Americas – Average Revenue per Available Luxury Room (US$), 2013–2017 ............................................................................................... 26 Figure 10: The Americas – Average Revenue per Occupied Luxury Room (US$), 2008–2012 ............................................................................................. 27 Figure 11: The Americas – Average Revenue per Occupied Luxury Room (US$), 2013–2017 ............................................................................................. 28 Figure 12: The Americas – Average Total Revenue per Available Luxury Room (US$), 2008–2012 .................................................................................... 29 Figure 13: The Americas – Average Total Revenue per Available Luxury Room (US$), 2013–2017 .................................................................................... 30 Figure 14: Asia-Pacific – Number of Luxury Hotel Establishments, 2008–2012 ..................................................................................................................... 32 Figure 15: Asia-Pacific – Number of Luxury Hotel Establishments, 2013–2017 ..................................................................................................................... 33 Figure 16: Asia-Pacific – Number of Luxury Hotel Rooms, 2008–2012 ................................................................................................................................... 34 Figure 17: Asia-Pacific – Number of Luxury Hotel Rooms, 2013–2017 ................................................................................................................................... 35 Figure 18: Asia-Pacific – Luxury Room Occupancy Rate (%), 2008–2012 ............................................................................................................................. 36 Figure 19: Asia-Pacific – Luxury Room Occupancy Rate (%), 2013–2017 ............................................................................................................................. 37 Figure 20: Asia-Pacific – Average Revenue per Available Luxury Room (US$), 2008–2012 ................................................................................................. 38 Figure 21: Asia-Pacific – Average Revenue per Available Luxury Room (US$), 2013–2017 ................................................................................................. 39 Figure 22: Asia-Pacific – Average Revenue per Occupied Luxury Room (US$), 2008–2012 ................................................................................................ 40 Figure 23: Asia-Pacific – Average Revenue per Occupied Luxury Room (US$), 2013–2017 ................................................................................................ 41 Figure 24: Asia-Pacific – Average Total Revenue per Available Luxury Room (US$), 2008–2012........................................................................................ 42 Figure 25: Asia-Pacific – Average Total Revenue per Available Luxury Room (US$), 2013–2017........................................................................................ 43 Figure 26: Europe – Number of Luxury Hotel Establishments, 2008–2012 ............................................................................................................................. 45 Figure 27: Europe – Number of Luxury Hotel Establishments, 2013–2017 ............................................................................................................................. 46 Figure 28: Europe – Number of Luxury Hotel Rooms, 2008–2012 .......................................................................................................................................... 47 Figure 29: Europe – Number of Luxury Hotel Rooms, 2013–2017 .......................................................................................................................................... 48 Figure 30: Europe – Luxury Room Occupancy Rate (%), 2008–2012 ..................................................................................................................................... 49 Figure 31: Europe – Luxury Room Occupancy Rate (%), 2013–2017 ..................................................................................................................................... 50 Figure 32: Europe – Average Revenue per Available Luxury Room (US$), 2008–2012 ........................................................................................................ 51 Figure 33: Europe – Average Revenue per Available Luxury Room (US$), 2013–2017 ........................................................................................................ 52 Figure 34: Europe – Average Revenue per Occupied Luxury Room (US$), 2008–2012........................................................................................................ 53 Figure 35: Europe – Average Revenue per Occupied Luxury Room (US$), 2013–2017........................................................................................................ 54 Figure 36: Europe – Average Total Revenue per Available Luxury Room (US$), 2008–2012 ............................................................................................... 55 Figure 37: Europe – Average Total Revenue per Available Luxury Room (US$), 2013–2017 ............................................................................................... 56 Figure 38: The Middle East and Africa – Number of Luxury Hotel Establishments, 2008–2012 ............................................................................................ 58 Figure 39: The Middle East and Africa – Number of Luxury Hotel Establishments, 2013–2017 ............................................................................................ 59 Figure 40: The Middle East and Africa – Number of Luxury Hotel Rooms, 2008–2012 .......................................................................................................... 60 Figure 41: The Middle East and Africa – Number of Luxury Hotel Rooms, 2013–2017 .......................................................................................................... 61 Figure 42: The Middle East and Africa – Luxury Room Occupancy Rate (%), 2008–2012 .................................................................................................... 62 Figure 43: The Middle East and Africa – Luxury Room Occupancy Rate (%), 2013–2017 .................................................................................................... 63 Figure 44: The Middle East and Africa – Average Revenue per Available Luxury Room (US$), 2008–2012........................................................................ 64 Figure 45: The Middle East and Africa – Average Revenue per Available Luxury Room (US$), 2013–2017........................................................................ 65 Figure 46: The Middle East and Africa – Average Revenue per Occupied Luxury Room (US$), 2008–2012 ....................................................................... 66 Figure 47: The Middle East and Africa – Average Revenue per Occupied Luxury Room (US$), 2013–2017 ....................................................................... 67 Figure 48: The Middle East and Africa – Average Total Revenue per Available Luxury Room (US$), 2008–2012 .............................................................. 68 Figure 49: The Middle East and Africa – Average Total Revenue per Available Luxury Room (US$), 2013–2017 .............................................................. 69 Figure 50: Brazil – Number of Domestic Trips by Type (Million), 2007–2016........................................................................................................................ 136 Figure 51: Brazil – International Arrivals by Purpose of Visit (Million), 2007–2016 ............................................................................................................... 137 Figure 52: Brazil – International Departures by Purpose of Visit (Million), 2007–2016 ......................................................................................................... 138 Figure 53: Russia – Number of Domestic Trips by Type (Million), 2007–2016 ..................................................................................................................... 140 Figure 54: Russia – International Arrivals by Purpose of Visit (Million), 2007–2016 ............................................................................................................. 141 Figure 55: Russia – International Departures by Purpose of Visit (Million), 2007–2016 ....................................................................................................... 142 Figure 56: India – Number of Domestic Trips by Type (Million), 2008–2017 ......................................................................................................................... 144 Figure 57: India – International Arrivals by Purpose of Visit (Million), 2008–2017 ................................................................................................................ 145 Figure 58: India – International Departures by Purpose of Visit (Million), 2008–2017 .......................................................................................................... 146 Figure 59: China – Number of Domestic Trips by Type (Million), 2008–2017 ....................................................................................................................... 148 Figure 60: China – International Arrivals by Purpose of Visit (Million), 2008–2017 ............................................................................................................... 149 Figure 61: China – International Departures by Purpose of Visit (Million), 2008–2017 ......................................................................................................... 150

GLOBAL LUXURY HOTEL MARKETS



1.1 Global Luxury Hotel KPIs – the Americas

1.1.1 The Americas – number of luxury hotel establishments (2008–2012)

The US was the largest country in terms of the number of luxury hotel establishments in the

Americas region, with X,XXX luxury hotel establishments in 2012.

During the review period, Peru had the lowest number of luxury hotels in the region, with XX luxury

hotel establishments in 2012.

Figure 1: The Americas – Number of Luxury Hotel Establishments, 2008–2012

Source: Timetric analysis © Timetric




1.2 Global Luxury Hotels KPIs – Asia-Pacific

1.2.1 Asia-Pacific – number of luxury hotel establishments (2008–2012)

China had the highest number of luxury hotel establishments in the Asia-Pacific region with XXX in

2012.

China also recorded the highest growth in the number of luxury hotel establishments in the Asia-

Pacific region, at a review-period CAGR of XX.X%.

Figure 2: Asia-Pacific – Number of Luxury Hotel Establishments, 2008–2012





1.3 Global Luxury Hotels KPIs – Europe

1.3.1 Europe – number of luxury hotel establishments (2008–2012)

The UK was the largest country in terms of number of luxury hotel establishments in the European

region, with XXX luxury hotel establishments in 2012, after growing at a review-period CAGR of

X.X%.

Despite being a relatively small market in the region, Poland recorded the highest growth rate in

the number of luxury hotel establishments with a CAGR of XX.X%, increasing to XX in 2012.

Figure 3: Europe – Number of Luxury Hotel Establishments, 2008–2012





1.4 Global Luxury Hotels KPIs – Middle East and Africa

1.4.1 The Middle East and Africa – number of luxury hotel establishments (2008–2012)

Egypt had the largest number of luxury hotel establishments in the Middle East and Africa region in

2012 with XXX.

South Africa had the lowest number of luxury hotels in the Middle East and Africa region with XX in

2012, despite recording growth at a CAGR of X.X%.

Figure 4: The Middle East and Africa – Number of Luxury Hotel Establishments, 2008–2012


APPENDIX



2 APPENDIX

2.1 What is this Report About?

This report is the result of research on the global luxury hotels market, covering its dynamics and

competitive landscape. The report broadly covers four regions – the Americas, Asia-Pacific, Europe

and the Middle East and Africa – and includes Timetric data and analysis for 40 leading hospitality

industries. It provides insights on trends and issues, and analysis of key hospitality metrics for these

markets along with forecasts to 2017. The report also includes key market trends in emerging luxury

hospitality industries such as the BRIC countries. It also provides an overview of the 10 leading luxury

hospitality companies, along with SWOT analysis and details of strategic initiatives undertaken by

them.

2.2 Definitions

For the purposes of this report, the following timeframes apply:

Review period: 2008–2012

Forecast period: 2013–2017

Base year for forecasting: 2012

All data is collected in local currency. To avoid distortions due to currency fluctuations, all conversions

into US dollars, of current, historical and forecast data alike, are made with a yearly average exchange

rate. All values in tables, with the exception of compound annual growth rate (CAGR) are displayed to

one decimal place. Growth rates may, therefore, appear inconsistent with absolute values due to this

rounding method.

The key market categories featured in the report are defined below:

Table 1: Timetric Global Luxury Hospitality Sector Definitions

Term Definition

Global Four broad regions are covered: the Americas, Asia-Pacific, Europe, and

the Middle East and Africa.

Americas Countries covered are the US, Mexico, Brazil, Canada, Argentina and Peru.

Asia-Pacific Countries covered are China, India, Thailand, Malaysia, Philippines, Indonesia, Australia, Japan, South Korea, Vietnam, Hong Kong,

Singapore and New Zealand.

Europe Countries covered are Turkey, Russia, Spain, Italy, the UK, Germany,

Austria, Portugal, France, Switzerland, Poland, Czech Republic, Netherlands, Belgium, Norway, Denmark and Finland.

Middle East and Africa Countries covered are Egypt, UAE, Saudi Arabia and South Africa.

Tourism demand factors Factors which influence time and money spent on tourism. Typical factors include the amount of holiday leave available to the average employee in

the country, and mean household income.

Annual employee holiday entitlement The number of days the average resident of a country will accrue annually

through entitled holidays, including annual leave and public holidays. Public holidays are statutory holidays to which a country’s residents are

entitled.

Domestic trip A trip taken to a destination within the traveler’s country of residence.

International trip A trip taken to a destination outside the traveler’s country of residence.

Trips taken by season The number of trips undertaken by the residents of a country (both

APPENDIX



domestic and international), segmented into four quarters: January–March, April–June, July–September and October–December.

Number of trips by residents The number of trips undertaken by the residents of a country, segmented by domestic and international trips.

Average length of trip The average number of nights spent by the residents of a country,

segmented by domestic and international trips.

Tourism flow factors Factors which influence the f low of tourists from one location to another.

Number of overnight stays The total number of nights spent by the residents of a country on all

tourism trips during a given year.

International arrivals The number of foreign nationals entering a country. For example, a

person from Canada who visits France would be an international arrival to France.

Leisure trips Trips for holidaying, recreation, or visits to friends and relatives.

Business trips Trips involving business as the primary purpose. It includes trips for

meetings, incentives, conventions and exhibitions (MICE), events and

conferences.

Other trips Trips for purposes other than leisure or business, such as education,

sports or pilgrimage.

International departures The total number of citizens leaving their home country and arriving in

other countries. This will be higher than the total number of citizens

leaving their home country, as a traveler might travel to more than one

country.

Domestic tourist expenditure Expenditure on tourism commodities during trips within national borders

by citizens of the country. This spending is categorized into

accommodation, sightseeing and entertainment, food service, retail

transportation, travel intermediation and others, which include travel

insurance and equipment rental.

Accommodation The total direct spending on accommodation by inbound, domestic and

outbound tourists within a single economy.

Inbound tourist expenditure Expenditure on travel and tourism commodities by international visitors

within a country. This spending is categorized into accommodation,

sightseeing and entertainment, food service, retail, transportation, travel

intermediation and others, which include travel insurance and equipment

rental.

Outbound tourist expenditure The total expenditure by the residents of a country for the purpose of, and

during, international tourism trips, irrespective of whether these

transactions involve domestic or international providers. This spending is

categorized by various categories such as accommodation, sightseeing

and entertainment, food service, retail, transportation, travel intermediation

and others which include travel insurance and equipment rental.

Hotels Establishments that provide paid lodging and full guest services, typically

with a continuous staff presence. In the case of motels, this includes off-

street parking facilities but not necessarily meal services.

Budget hotels Includes hotels that are considered to be budget accommodation, or have

a one- or two-star rating, providing accommodation on a short-term basis

at relatively low prices.

Midscale hotels Includes hotels with a three-star rating. These hotels provide more

facilities and comfort than budget hotels, and their services are charged at

higher prices.

Upscale hotels Includes hotels with a four star rating. Upscale hotels include both

traditional full-service hotels and smaller select-service hotels with

comfortable accommodation at higher prices than midscale hotels.

Luxury hotels Includes hotels with a five-star rating or higher. Luxury hotels provide top

quality accommodation, with a combination of high-class facilities and

style, typically at much higher prices than standard hotels.

APPENDIX



Select-service properties Select-service properties offer the characteristics of limited-service

properties along with a selection of services offered by full-service

properties. Certain restaurant and banquet facilities are offered by such

properties albeit at a smaller scale as compared to full-service properties

to keep operating costs low. These hotels do not operate multiple

restaurants or offer a large meeting space.

Number of rooms The total number of rooms available in all hotel accommodation

establishments in a country in a year.

Room occupancy rate The percentage of available rooms sold during a given period.

Revenue per available room (RevPAR) A measure of financial performance in the hospitality industry. It is the

ratio of total room revenue to total rooms available. Average room rates

and occupancy can also be used to calculate revenue per available room.

Total room revenue The room rent that a guest pays for the occupied room.

Total non-room revenue Revenue earned by hotels other than the room rent. It includes revenue

from food and beverages, telecommunications, health and leisure

operations, and car rentals.

Number of guests Guest numbers in all hotel accommodation establishments in a country in

a year.

Business guests The annual number of guests arriving in hotel accommodation

establishments for business purposes.

Leisure guests The annual number of guests arriving in hotel accommodation

establishments for leisure purposes.

Tourism packages A combination of tourism products or services, such as accommodation,

travel bookings and car rental bundled together by a tour operator.

Experiential travel Travel packages offering a holistic experience for travelers who want to go

beyond the beaten tourist paths and learn about cultural and social

aspects of a country or a place.

Other products Revenue generated by travel intermediaries from travel products and

services that are not classified above.

Travel agents Businesses that sell travel-related products and services to both leisure

and business customers on behalf of suppliers such as tour operators.

These may include package holidays, sightseeing tours, airline tickets,

hotel accommodation, cruise bookings, car rentals, rail travel and travel

insurance. Some travel agents also serve as sales agents for international

travel companies.

Tour operators

Tour operators typically combine two or more travel services, such as

transport, sightseeing, accommodation, food and entertainment, and sell

them either directly to customers or through travel agents as a single

product, called a package tour, for one price.


APPENDIX



2.3 Methodology

Timetric’s dedicated research and analysis teams consist of experienced professionals with industry

backgrounds in marketing, market research, consulting and advanced statistical expertise.

Timetric adheres to the Codes of Practice of the Market Research Society (www.mrs.org.uk) and the

Society of Competitive Intelligence Professionals (www.scip.org).

All Timetric databases are continuously updated and revised.

All travel and tourism reports are created by following a comprehensive, four-stage methodology. This

includes market study, research, analysis and quality control.

1) Market Study

A. Standardization

Definitions are specified using recognized industry classifications. The same definition is used for

every country. Annual average currency exchange rates are used for the latest completed year. These

are then applied across both the historical and forecast data to remove exchange rate fluctuations.

B. Internal Audit

Review of in-house databases to gather existing data:

o Historic market databases and reports

o Company database

C. Trend monitoring

Review of the latest travel and tourism companies and industry trends

2) Research

A. Sources

Collection of the latest market-specific data from a wide variety of industry sources:

o Government statistics

o Industry associations

o Company filings

o International organizations

o Travel and tourism agencies

B. Expert opinion

Collation of opinion taken from leading travel and tourism sector experts

Analysis of third-party opinion and forecasts:

o Broker reports

o Media

o Official government sources

C. Data consolidation and verification

Consolidation of data and opinion to create historical datasets

Creation of models to benchmark data across categories and geographies

APPENDIX



3) Analysis

A. Market forecasts

Feeding forecast data into market models:

o Macroeconomic indicators

o Industry-specific drivers

Analysis of the travel and tourism sector database to identify trends:

o Latest travel and tourism trends

o Key drivers of the travel and tourism sector

B. Report writing

Analysis of market data

Discussion of company and industry trends and issues

Review of financial deals and travel and tourism trends

4) Quality Control

A. Templates

Detailed process manuals

Standardized report templates and accompanying style guides

Complex forecasting tools to ensure that forecast methodologies are applied consistently

Quality-control checklists

B. Quality control process

Peer review

Senior-level QC

Random spot checks on data integrity

Benchmark checks across databases

Market data cross-checked for consistency with accumulated data from:

o Company filings

o Government sources

APPENDIX



2.4 Contact Timetric

If you have any queries about this report, or would like any further information, please contact

[email protected].

2.5 About Timetric

Timetric is a leading provider of online data, analysis and advisory services on key financial and

industry sectors. It provides integrated information services covering risk assessments, forecasts,

industry analysis, market intelligence, news and comment.

Timetric helps over 1,500 financial services institutions and their partner companies around the world

benefit from better, timelier decisions.

Timetric provides:

High-quality data including proprietary, specialized industry data, survey-based research, social

media monitoring, macroeconomic data and forecasts

Expert analysis from experienced economists and analysts, who use robust proprietary models,

indices and forecasts

Powerful proprietary visualization and workflow technology developed over years of extensive

investment

Timetric has office locations in London, New York, San Francisco, Hyderabad, Seoul, Singapore and

Sydney. It employs 500 people, including 150 analysts and economists, and 200 professional

researchers.

APPENDIX



2.6 Timetric’s Services

Intelligence Centers

Timetric’s industry intelligence centers are premium web-based services that provide access to

interactive tools, comprehensive research and expert analysis in key sectors. They provide invaluable

decision support presented in an easily digestible format and grounded in deep research.

Timetric offers Intelligence Centers covering the following industries:

Banking

Insurance

Wealth

Construction

Travel and Tourism

Briefing Services

Timetric offers a range of briefing services, which offer cutting-edge thought leadership and expert

commentary on and for the financial services industries. Driven by influential and respected editorial

teams with years of experience in their respective fields, these services deliver need-to-know insight

and analysis to decision makers across the financial services value chain.

Timetric offers briefing services covering the following financial sectors:

Accountancy

Asset Finance

Banking

Cards and Payments

Insurance

Consultancy

Timetric specializes in the development and delivery of innovative research solutions that are

designed to provide competitive advantage and profitability to clients.

Dedicated industry analysts and economists provide expert advice and actionable recommendations

underpinned by Timetric’s market and country knowledge, experience and proprietary databases,

panels and research infrastructure.

For projects requiring quantitative data, Timetric undertakes special research projects using its in-

house panels and survey technology. These provide ready access to an extensive source of specialist

business executives and consumers.

Core capabilities include:

Economic Research and Consulting

Highly experienced economists provide a number of bespoke research services covering subjects

ranging from macroeconomic forecasting to sector outlooks, business presentations and workshops.

Industry Analysis and Consulting

Information analysis, independent expert opinion and advice, facilitated decision or strategic support,

are provided by Timetric’s extensive body of proprietary data and analysis models. It provides

expertise-based consulting to deliver solutions that best suit its clients’ requirements.

Quantitative Research

APPENDIX



Timetric connects with thousands of potential customers for various markets every day. Using

sophisticated, interactive and highly engaging graphical surveys, research speed is increased and

costs reduced, while ensuring that respondents deliver the insight needed.

Qualitative Research

Timetric’s Qualitative Research service helps customers understand the emotional and cultural

behaviors of a target audience. Timetric provides unique access through market-leading publications

and information services to decision makers specifically brought together to discuss topics that are

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Technology Solutions

Timetric has built a unique technological platform to collect and visualize data, and employs some of

the world’s leading experts on data collection and visualization. Through technology and software

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2.7 Disclaimer

All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form

by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior

permission of the publisher, Timetric.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed.

Please note that the findings, conclusions and recommendations that Timetric delivers will be based

on information gathered in good faith from both primary and secondary sources, whose accuracy we

are not always in a position to guarantee. Timetric will accept no liability whatsoever for actions taken

based on any information that may subsequently prove to be incorrect.

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