Budget Hotels - Europe - February 2010

• Publication date: February 2010

About this report Insight + Impact - Mintel's commitment to its clients is encapsulated in this simple formula. Mintel's travel and tourism clients gain global insight into the latest consumer trends, issues and developments in the industry. Our high quality data, meaningful analysis and actionable recommendations always positively impact our clients' business. This report reviews the budget hotel sector in Europe, foc...

About this report

Insight + Impact - Mintel's commitment to its clients is encapsulated in this simple formula.

Mintel's travel and tourism clients gain global insight into the latest consumer trends, issues and developments in the industry. Our high quality data, meaningful analysis and actionable recommendations always positively impact our clients' business.

This report reviews the budget hotel sector in Europe, focusing on the activities of the main budget hotel operators on the continent and evaluating the potential for further development in the principal European country markets (France, the UK, Germany, Spain, Poland and Italy).
Travel and Tourism Analyst

Travel and Tourism Analyst is a unique series of 20 reports, designed to keep tourism organisations, tourist boards, leading travel operators, academic institutions and investment houses in touch with global travel trends.

Gain insight into:

*

The most significant developments in transport trends
*

Accommodation trends
*

Travel industry technology issues
*

Growth travel market sectors
*

Shifting outbound travel trends
*

Niche travel markets

Use Travel and Tourism Analyst to:

*

Identify opportunities for growth
*

Increase your market intelligence quickly and easily
*

Strategise consumer targeting
*

Translate consumer trends into business drivers
*

Pin-point threats and adjust your business plans accordingly

Hotel And Lodging Industry in Europe

Contents

Introduction
Key findings
What is a budget hotel?
Sub-segments
Business travellers targeted
Revenue management increasingly used
‘Cheap chic’ – a defining trend
Impact on the big operators
Data Sources
Overview
Service sector important for budget hotels
Figure 1: Year-on-year percentage growth in real GDP*, 2008-11
Economy and midscale rooms increased by 3% in 2008
Figure 2: Trend in 0-3-star hotel capacity in the 27 EU countries, 2008-09
Figure 3: Ranking of economy hotel brands in the 27 EU countries by number of rooms, 2008-09
Major Budget Hotel Operators in Europe
Accor
Figure 4: Accor’s economy hotel capacity by brand and European country, October 2009
Lots of leasing, less franchising
Figure 5: Accor’s economy hotel portfolio* by ownership structure and brand, 31 December 2008
158 Formule 1s sold
Etap Hotel, Formule1/F1
Formule 1 relaunched as F1
Etap also gets a makeover
Ibis
Environmental standards
20 restaurant concepts
All seasons
Accor’s German strategy
Lease contracts remain the preferred vehicle
Five hotels in the pipeline
Express by Holiday Inn
Highly standardised
European expansion
Figure 6: Express by Holiday Inns by European country, 2007 and 2009
UK development
Express’ German partner
Louvre Hotels & Golden Tulip
Growth stagnating
Figure 7: Geographical spread of Louvre’s budget hotels, 2006 and 2009
Golden Tulip acquisition
Golden Tulip complements Starwood Capital’s portfolio
Looking to the future
Louvre’s hotel brands
Figure 8: Louvre’s capacity by brand, 2006 and 2009
Campanile
Kyriad
Kyriad Prestige
Première Classe
A mix of business models
Figure 9: Louvre’s hotel portfolio, by asset management structure, September 2009
Louvre’s Polish expansion
Louvre signs distribution deal with GTA
Premier Inn
Rapid expansion
Future growth
Figure 10: Scheduled future opening of Premier Inns, 2010
First steps abroad
Most properties are owned
‘Co-location’ with Whitbread branded restaurants
Sales flat in 2009
Travelodge
Vigorous expansion continues
Marston’s deal
Financial backing
Tamesis
Travelodge and Twenty10
The most visited hotel website
Aggressive revenue management
Other budget hotel operators and brands
B&B Hotels
Balladins
Choice Hotels International
Figure 11: Choice’s European budget hotel portfolio, 2006 and 2008
Continental Europe
Ireland
Scandinavia
UK
Days Inn
EasyHotel
Motel One
What Next?
Outlook by major country market
France
Figure 12: Ranking of economy hotel brands in France, by number of rooms, 2008-09
UK
Figure 13: Leading budget hotel brands by capacity in the UK, 2008-09
Germany
Figure 14: Leading budget hotel brands in Germany, 2009
Spain
Figure 15: Leading budget hotel brands in Spain, 2006 and 2009
Figure 16: Sidorme’s current hotel portfolio, August 2009
Figure 17: Sidorme Hotels in detail, 2009
Poland
Italy

Hotel and Lodging in Europe

Europe Accommodation, Average Length Of Stay, Nights

• $ 250
• Industry data
• February 2013

Yearly, From 1990 To 2017
By Business Monitor International
Source: National Sources/BMI Calculation/BMI Forecast

• Industries : Hotel and Lodging
• Countries : Europe

Europe Accommodation, Total Overnight Stays, `000

• $ 250
• Industry data
• February 2013

Yearly, From 1990 To 2017
By Business Monitor International
Source: National Sources/BMI Calculation/BMI Forecast

• Industries : Hotel and Lodging
• Countries : Europe

Europe Accommodation, Total Overnight Stays, `000, % Change Y-o-y

• $ 250
• Industry data
• February 2013

Yearly, From 1991 To 2017
By Business Monitor International
Source: National Sources/BMI Calculation/BMI Forecast

• Industries : Hotel and Lodging
• Countries : Europe

Europe Accommodation, Number Of Hotels And Establishments, `000, % Change Y-o-y

• $ 250
• Industry data
• February 2013

Yearly, From 1991 To 2013
By Business Monitor International
Source: National Sources/BMI Calculation/BMI Forecast

• Industries : Hotel and Lodging
• Countries : Europe

Europe Accommodation, Hotel Rooms, `000

• $ 250
• Industry data
• February 2013

Yearly, From 1990 To 2017
By Business Monitor International
Source: National Sources/BMI Calculation/BMI Forecast

• Industries : Hotel and Lodging
• Countries : Europe