HTL 2019 Eu Chains-2 PDF

European
Chains & Hotels

Report 2019
Contents
Welcome to Horwath HTL, the global leader in

hospitality consulting. We are the industry choice;
a global brand providing quality solutions for hotel,
tourism & leisure projects.
Page 5 Forward Page 32 Albania
Page 7 Introduction Page 36 Croatia
Page 42 Cyprus
Page 10 Chain Hotels & Brands Page 46 Denmark
Page 14 Year-on-Year Growth Page 50 France
Page 16 Supply Page 56 Germany
Page 18 Chain Hotels & Rooms Page 62 Greece
Page 22 International Capital Flows Page 68 Hungary
Page 24 Investment Page 74 Ireland
Page 26 Openings & Deal Signing Page 80 Italy
Page 28 Business Model Page 86 Montenegro
Page 92 Netherlands
Page 98 Norway
Page 102 Poland
Page 108 Portugal
Page 114 Serbia
Page 120 Slovenia
Page 126 Spain
Page 132 Sweden

Click on this icon
for easy navigation Page 136 Switzerland
of the document Page 142 Turkey
Page 148 United Kingdom
Horwath HTL l European Hotels & Chains Report 2019 3

Forward
The report looks at the relationship

between hotel chains, their myriad
of brands, and the wider world of
hospitality and lodging.
A very warm welcome to the new edition of the Horwath We look at the models used by the chain companies
HTL Chains & Hotels Report, the third annual instalment. and see which ones are the most prevalent, in which
The report looks at the relationship between hotel chains, market segment.
and their myriad of brands, and the wider world
of hospitality and lodging. In this edition, we have enhanced the report in a number
of key ways. Firstly, we have greatly expanded the scope
There have been two big stories over the last 25 years of the markets, from 12 last year to 22 this. Our goal is
in the industry, and we look at them both in the report. to cover every market in Europe and we are well on the
way to achieving that. Secondly, we have added a lot of
The first has been the inexorable growth and expansion information about hotel ownership; who has been active
of branded hotels and their wider significance in the buying and selling hotels, what were the biggest deals
landscape of hospitably. Every year sees the creation and done last year and where is that money coming from.
introduction of more and more brands, both international Lastly, we have been able to identify and highlight where
and domestic, as a way to drive market share through next years deals have been signed and when these new
identity, segmentation and increasing scale. This is being hotels are likely to open.
done in a variety of ways, either through the introduction
of brands with a proven track record in other countries, All in all, it is a comprehensive look at a vibrant hotel
the creation of new brands from scratch or the slicing and market, one that has had significant growth over the last
dicing of existing brands to make them go further. few years. We hope you enjoy reading the report as much
as we enjoyed putting it together.
The second large trend has been the change in the model
for owning and operating hotels. What impact has this James Chappell
asset light approach had on growth? What is interesting, Horwath HTL Global Business Director
and a complicating factor, is how each market has a
different tolerance for each model and how that can
work for/against chains trying to sign more deals.

Introduction
For this latest edition, we have collected

much more information. We have data
on business models, transaction and
investment numbers as well as the number
of hotel deals being signed.
In the compilation of the data, we asked our offices to In order to standardize the data, we looked at the same
not rely on available local data, but to create our own KPI’s across all countries using the same methodology:
databases from scratch. Once that was done, we checked • Total number of chain hotels
our results with institutional data providers who have • Total number of chain rooms
comprehensive numbers on hotels, restaurants, hostels • Average size per chain hotel in rooms
and all the rest. • Country hotels stock (overall supply)
• Country rooms stock (overall supply)
We then dug deeper into each market to get an • Average size per hotel in rooms
understanding of the players, and what size and scope • Chain penetration % by hotels
they have. We looked at overall ranking by size in each • Chain penetration % by keys
country, by overall group (hotels and rooms) and by • Total number of brands
brand. We broke the information down by domestic and • Domestic brands
international groups and brands, and then by scale/style • International brands
of hotels. • Second tier operated hotels
• International chain hotels (incl. double counting)
For this latest edition, we have started collecting much • Domestic chain hotels (incl. double counting)
more information on business models, looking at the • International chain rooms (incl. double counting)
four main types; namely owner operator, management • Domestic chain rooms (incl. double counting)
contract, franchise and lease. We don’t have all of this
information for all hotels, but we have enough to show James Chappell
us the general trends and see which models are popular Horwath HTL Global Business Director
where. We also look at ownership details, and are grateful
to include information from the leading collector and
exponent of this information, Real Capital Analytics. RCA
collect transactional data across all real estate classes and
are a wealth of information about the movers and shakers
in the hotel world.

Chain Hotels & Brands
Chain Hotels & Brands
250
253
240
222
For the 12 markets where we have YoY

200 209
187
data, there has been a significant amount 150

143
159
150
of growth of Chain hotels in 2018. There

131
120
100 107
97
was a total of 686 new hotels, equating to

89
80 73
70 70 68 69
66 63
60
73,802 rooms, which is just over 4% growth.

50
50 50 51
43 44 45 43
39 41 28 25 23
19 19
26 26
22
13 13 7
16 19 22 21
7
21 19 7 4
16 3 4 6 12 5
10 10 12 13 2 11 1 2 2 2
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Total Market Brands
CHAINS & PENETRATION BRANDS
For this edition of the report, we have collected data from In terms of the total number of brands, the average
22 European countries, ten more than last year, and have country has 82 hotel brands present. This range goes Country Hotels % Rooms % Domestic International Total
year to year data from 12. This means a really fascinating from Albania with 4, to Spain with 253. Spain has the Albania 12 2% 736 6% 2 2 4
spread from countries like Albania with 12 Chain hotels most domestic brands, 187, whilst Germany has the Croatia 186 26% 33,939 58% 22 21 43
all the way to France with 3,885. The spread and the scale most International brands with 131. Cyprus 51 22% 9,701 17% 2 5 7
of the market is impressive, let’s start with some overall
Denmark 133 23% 23,377 50% 4 19 23
numbers. Growth
France 3,885 21% 320,060 49% 50 70 120
For the 12 markets where we have year on year data,
Germany 2,217 11% 317,325 38% 89 131 222
The market (22 countries) has a grand total of 146,616 there has been a significant amount of growth of Chain
hotels, which accounts for just over six million bedrooms. hotels in 2018. There was a total of 686 new hotels, Greece 730 7% 100,021 24% 164 47 209
The average number of rooms per hotel in the market is equating to 73,802 rooms which is just over 4% growth. Hungary 159 15% 22,093 36% 10 41 51
61, and range from a massive 238 in a resort destination Ireland 185 22% 24,927 41% 7 21 28
like Cyprus, to 20 in Albania. Two of the largest markets, In contrast, the overall market grew by less than 1%, Italy 1,584 5% 171,845 16% 143 97 240
France and Spain, have a very disparate number with meaning that if you take out new build hotels, the overall Montenegro 25 8% 4,113 25% 2 11 13
the average French hotel having just 36 rooms and the market probably lost more independent hotels than they
Netherlands 663 19% 76,133 59% 39 68 107
average Spanish hotel 94. gained. The total number of brands grew 7%, or 102. This
Norway 299 27% 49,335 56% 6 13 19
doesn’t mean 102 new brands entered the market, but
Poland 366 14% 50,484 37% 26 43 69
Chains brands entered into markets they had not been in before.
For the Chain Hotel market, there are 18,575 hotels with Portugal 336 26% 43,069 44% 19 26 45
a total of 2,289,879 million bedrooms. This means that Serbia 22 6% 3,520 19% 1 12 13
Chain hotels make up 13% of the overall hotel market, James Chappell Slovenia 78 24% 8,590 44% 7 12 19
but represent 38% of the room market. Not surprisingly, Horwath HTL Global Business Director
Spain 2,488 34% 392,301 56% 188 65 253
the average size of Chain hotels is over twice the size of
Sweden 429 21% 63,388 51% 9 22 31
the whole market at 131 rooms. Here the spread is much
Switzerland 312 7% 33,775 26% 10 63 73
more even, representing the consistency of hotel brands,
Turkey 942 19% 177,785 37% 44 16 60
with 19 out of the 22 markets having average chain room
numbers of between 106 and 190. UK 3,610 11% 384,223 48% 70 80 150
10 Horwath HTL l European Hotels & Chains Report 2019 Horwath HTL l European Hotels & Chains Report 2019 11
Norway
Chain Hotels & Rooms
Chain hotels: 299
Chain rooms: 49,355
Chain hotel penetra
on: 27%
Chain keys penetra
on: 60%
Poland
Germany Chain hotels: 366
Chain hotels: 2,217 Sweden Chain rooms: 50,484
Chain rooms: 317,325 Chain hotels: 429 Chain hotel penetra
on: 14%
Chain hotel penetra
on: 11% Chain rooms: 63,388 Chain keys penetra
on: 37%
Chain keys penetra
on: 38% Chain hotel penetra
on: 21%
Chain keys penetra
on: 51%
Netherlands
Chain hotels: 663
Denmark Slovenia
Chain rooms: 76,133 Chain hotels: 133
Chain rooms: 22,565 Chain hotels: 78
Chain hotel penetra
on: 19%
Chain hotel penetra
on: 23% Chain rooms: 8,590
Chain keys penetra
on: 59%
Chain keys penetra
on: 24%
UK Chain keys penetra
on: 44%
Chain hotels: 3,610 Hungary

Chain rooms: 384,223
Chain hotel penetra
on: 11% Chain hotels: 159
Chain keys penetra
Chain hotel penetra
on: 15%
Ireland Chain keys penetra
on: 36%
Chain hotels: 185 Croaa

Chain rooms: 24,927
Chain hotel penetra
on: 22% Chain hotels: 186
Chain keys penetra
Chain hotel penetra
on: 26%
Chain keys penetra
on: 58%
Serbia
Switzerland Chain hotels: 22
Chain hotels: 312 Chain rooms: 3,520
Chain rooms: 33,775 Chain hotel penetra
on: 6%
Chain hotel penetra
on: 7% Chain keys penetra
on: 19%
Chain keys penetra
on: 26%
Montenegro
France Chain hotels: 25
Chain hotels: 3,885 Chain rooms: 4,113
on: 8%
Chain hotel penetra
on: 25%
Chain keys penetra
on: 49%
Albania
Spain Chain hotels: 12
Chain hotels: 2,488 Chain rooms: 736
on: 2%
Chain hotel penetra
on: 6%
Chain keys penetra
on: 56%
Portugal Turkey
Chain hotels: 336 Chain hotels: 942
Chain rooms: 43,069 Chain rooms: 177,785
Chain hotel penetra
on: 19%
Chain keys penetra
on: 37%
Italy Greece Cyprus

Chain hotels: 1,584 Chain hotels: 730 Chain hotels: 51
Chain rooms: 171,845 Chain rooms: 101,021 Chain rooms: 9,701
Chain hotel penetra
on: 22%
Chain keys penetra
on: 17%
Norway
Year-on-Year Growth
Germany Poland
9% total brand increase Sweden 13% total brand increase
7% chain hotel increase
7% chain hotel increase 6% chain room increase
5% chain room increase
Netherlands
8% total brand increase
Denmark Slovenia
UK
1% total brand increase Hungary
3% total room increase -2% total brand decrease
Ireland
-10% total brand decrease Croaa
4% chain room increase 115% total brand increase
Serbia
Switzerland
Montenegro
France
Albania
Spain
Portugal Turkey
Italy Greece Cyprus

6% total brand increase 6% total brand increase 0% total brand increase
6% chain hotel increase 5% chain hotel increase 2% chain hotel increase
5% chain room increase 5% chain room increase 1% chain room increase
Branded Hotel Supply Total Market Supply
TOTAL SUPPLY
Country Hotels Rooms Avg. Size

34% 26% 26% 24%
Albania 622 12,400 20
SPAIN CROATIA PORTUGAL SLOVENIA

Croatia 724 58,437 81
Cyprus 236 56,245 238

147,000
Total Hotels
22% 22% 21% Denmark 570 47,500 83
France 18,079 652,698 36

IRELAND CYPRUS FRANCE
Germany 20,029 827,861 41
Greece 9,874 425,993 43
20% 19% 19% Hungary 1,049 61,213 58
NORWAY TURKEY N’LANDS Ireland 834 60,222 72

6m
Italy 32,988 1,086,910 33 Total Rooms
Montenegro 327 16,576 51
19% 15% 15%
Netherlands 3,503 129,479 37
SWEDEN HUNGARY DENMARK

Norway 1,100 88,200 80
Poland 2,592 136,080 53
14% 11% 11% Portugal 1,309 98,960 76
POLAND GERMANY UK
Serbia 372 18,409 49
18,600
Slovenia 327 19,519 60 Chain Hotels
Spain 7,401 695,949 94
8% 8% 7% Sweden 2,045 124,000 61
GREECE M’NEGRO Switzerland 4,261 129,174 30

SW’LAND
Turkey 4,910 487,027 30
UK 33,464 797,998 24
6% 5% 2%
2.3m
Chain Rooms
SERBIA ITALY ALBANIA
Chain Hotels vs Market Chain Rooms vs Market
3,885 392,301
ce
in
an
18,079
a
695,949
Sp
Fr
3,610 384,223
2,217
K
K
33,464 797,998
U
U
2,488 320,060
in
ce
a
7,401 652,698
an
Sp
Fr
2,217 317,325
y
an
y
an
m
20,029 827,861
m
er
er
G
G
1,584 177,785
ey
ly
rk
32,988
Ita
487,027
Tu
942 171,845
y
ke
ly
4,910 1,086,910
Ita
r
Tu
766 Chain hotels 101,021

ce
e
ec
e
9,874
re
425,993
re
Country hotels
G
G
663 76,133
s
ds
nd
n
3,503
la
129,479
la
er
er
h
h
Chain rooms
et
et
429
N
N
63,388
en
en
ed
16
2,045
ed
124,000 Country rooms
Sw
Sw
366 50,484
d
an
d
an
2,592
l
136,080
Po
l
Po
336
49,335
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ga
ay
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1,309
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88,200
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Po
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N
312
nd
43,069
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la
4,261
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tu
98,960
itz
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Po
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299 33,939
ay
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1,100 58,437
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N
186 33,775
nd
724
la
129,174
er
itz
Sw
185 24,927
d
an
d
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834
l
Ire
60,222
l
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159
k
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23,377
ar
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ga
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1,049
un
47,500
D
H
133 22,093
k
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ar
ga
m
570 61,213
un
en
D
H
78 9,701
ia
s
en
ru
327
p
56,245
ov
Cy
Sl
51 8,590
s
ia
ru
en
p
236 19,519
ov
Cy
Sl
25 4,113
o
o
gr
gr
16,576
ne
327
ne
te
te
on
on
M
22 3,520
M
ia
ia
rb
372 18,409
rb
Se
Se
12 736
ia
ia
n
an
ba
622 12,400
b
Al
Al
Investment
International Capital Flows, 2018
ISRAEL
USA €2,177m SPAIN €1,076m
UK
ISRAEL N’LANDS
USA €450m €254m
UK
GERMANY FRANCE Tokyo
USA €346m €951m

UK
Santo Domingo
Kuala Lumpur
Singapore
USA €305m €880m

Jakarta
CYPRUS
IRELAND UK
FRANCE
Auckland
CANADA €454m €708m

UK UK
Source: Real Capital Analytics, Inc. 2019
Investment Volumes & Traded Keys Hotel Portfolio Deals, 2018
Country VOLUME IN €M NO. OF KEYS € PER KEY Deal Location Price Units PPU Buyer Seller
2017 2018 2017 2018 2017 2018 Blackstone's Purchase of Hispania Spain €1,787 - - Blackstone Hispania
Croatia 59 7 1,125 306 €52,873 €22,197
UK
Principal Hotel Company Portfolio €951 2,633 361,047 Covivio Starwood Capital
France 1,266 1,393 11,523 5,754 €109,873 €242,099 (multiple)
Germany 4,033 4,156 22,464 23,304 €179,510 €178,328 UK Vivion Capital

Ribbon Portfolio 2018 €855 4,272 200,064 Apollo Global RE
(multiple) Partners
Hungary 189 35 1,864 332 €101,361 €104,996
Oaktree UK/IE SACO Aparthotel Europe €503 1,078 466,404 Brookfield AM Oaktree
Ireland 455 622 2,427 3,989 €187,418 €156,036
Italy 560 402 6,261 3,206 €89,465 €125,282 Amaris UK/IRE Hotel Portfolio Europe €364 895 406,444 LRC Europe Lone Star
Netherlands 1,705 1,323 8,478 6,094 €201,087 €217,112
Tifco IRE Hotel Portfolio Europe €320 2,191 146,052 Apollo Global RE Goldman Sachs
Norway 108 44 993 470 €108,424 €93,899
Poland 206 117 2,004 882 €102,936 €132,086 UK

Amaris Portfolio Mercury Tranche €313 2,281 137,431 LRC Europe Lone Star
(multiple)
Portugal 129 228 1,022 631 €126,223 €361,678
UK Secure Income GoldenTree Asset Mgt
Secure Income acquires UK Hotel PF €241 - -
Spain 4,159 3,551 33,298 24,976 €124,914 €142,160 (multiple) REIT JV AvenueCapital Grp
Sweden 469 277 1,803 1,854 €260,388 €149,543 UK

Starwood De Vere Hotel Portfolio €182 1,719 105,711 PGIM Real Estate Starwood Capital
(multiple)
Switzerland 250 191 1,058 980 €236,052 €194,770
Park Hotels
Project Dragonglass UK €154 1,334 115,640 Starwood Capital
United Kingdom 6,176 6,483 30,976 27,350 €199,393 €237,041 & Resorts
Source: Real Capital Analytics, Inc. 2019 Source: Real Capital Analytics, Inc. 2019
400,000
Hotel Ownership
€361,678
Rank Company Units
1 AccorInvest 31,308
300,000
2 Pandox 26,742
3 Covivio 26,530
€260,388
4 Blackstone 19,665
€242,099
€237,041
€236,052
2018 Price per key (€)

5 Shanghai Jinjiang Intl 18,109
€217,112
200,000
€201,087
€199,393
2017 Price per key (€)

€194,770
6 Union Investment 16,411

€187,418
€179,510
€178,328
7 London + Regional 14,056

€156,036
€149,543
€142,160
8 DekaBank 12,121
€132,086
€126,223
€124,914
€125,282
9 Fattal Hotels 10,573

€109,873
100,000
€108,424
€104,996
€102,936
€101,361
€52,873
€93,899
€89,465
10 Eurazeo 9,125
€22,197
0
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Norway
Openings & Deal Signing
Total openings: 1 (0%)
(14 hotel companies provided deal signing data) Deals signed: 2 (0.52%)
Expected openings 2018/19: 1
Expected openings 2020+: 1
Poland
Germany Total openings: 12 (5%)
Total openings: 34 (13%) Sweden Deals signed: 23 (5.99%)
Deals signed: 58 (15.10%)
Expected openings 2018/19: 20 Deals signed: 1 (0.26%) Expected openings 2020+: 19
Expected openings 2020+: 38 Expected openings 2018/19: 0
Netherlands
Denmark Slovenia
Deals signed: 12 (3.13%) Deals signed: 2 (0.52%)
Expected openings 2018/19: 1 Total openings: 2 (1%)
Expected openings 2020+: 1 Deals signed: 1 (0.26%)
UK
Total openings: 57 (22%) Hungary
Expected openings 2018/19: 38 Total openings: 2 (1%)
Expected openings 2020+: 36 Deals signed: 6 (1.56%)
Ireland Expected openings 2020+: 5
Deals signed: 1 (0.26%) Croaa

Serbia
Switzerland Total openings: 2 (1%)
Montenegro
France
Albania
Spain Total openings: 1 (0%)
Total openings: 6 (2%) Deals signed: 2 (0.52%)
Deals signed: 21 (5.47%) Expected openings 2020+: 2
Portugal Turkey
Total openings: 2 (1%) Total openings: 32 (12%)
Deals signed: 8 (2.08%) Deals signed: 26 (6.77%)
Expected openings 2018/19: 4 Expected openings 2018/19: 18
Expected openings 2020+: 4 Expected openings 2020+: 8
Italy Greece Cyprus

Total openings: 11 (4%) Total openings: 6 (2%) Total openings: 1 (1%)
Deals signed: 21 (5.47%) Deals signed: 8 (2.08%) Deals signed: 4 (1.04%)
Expected openings 2018/19: 13 Expected openings 2018/19: 6 Expected openings 2018/19: 1
Expected openings 2020+: 8 Expected openings 2020+: 2 Expected openings 2020+: 3
Business Model
Ranking Model Hotels Rooms % Hotels % Rooms
Lease Lease 60 17,141 3.90% 11.78%
Managed
Managed 103 8,870 6.70% 6.10%
Economy
Owned/Managed
Owned/Managed 862 79,411 56.05% 54.60%
Lease Franchise
Franchise 573 40,032 37.26% 27.52%
Managed
Owned/Managed
Franchise Lease 52 9,764 1.41% 2.39%
Lease
Managed Managed 302 32,944 8.18% 8.07%
Midscale
Owned/Managed
Franchise
Owned/Managed 702 86,982 19.02% 21.30%
Franchise 2,634 278,720 71.38% 68.25%
Ranking Model Hotels Rooms % Hotels % Rooms Ranking Model Hotels Rooms % Hotels % Rooms
Lease 276 68,549 3.91% 7.66% Lease

Lease 150 38,260 9.42% 12.54%
Managed 902 150,527 12.79% 16.81% Upscale

Managed Managed 382 84,692 23.98% 27.76%
& Upper
Overall Owned/Managed
Upscale
Owned/Managed 1,789 211,527 25.37% 23.63% Franchise
Owned/Managed 207 41,952 12.99% 13.75%
Franchise 4,086 464,715 57.93% 51.91% Franchise 848 140,192 53.23% 45.95%
Lease
Lease 14 3,384 7.87% 9.31%
Managed Managed 115 24,021 64.61% 66.07%

Luxury
Owned/Managed
Franchise
Owned/Managed 18 3,182 10.11% 8.75%
Franchise 31 5,771 17.42% 15.87%
Europe: Country Data
Albania
Albania has never been as attractive for tourism

investments as it is now. Hotel chains are chasing
opportunities to enter Tirana or start up resorts
along the 350km of unspoiled coast.
The Market Key Points

Albania is one of the few almost undiscovered •
350 km of beaches
destinations on the Mediterranean coast. The popularity Albania offers over 350 km of beaches along the
on European incoming markets has grown impressively Adriatic and Ionian seas, with a very limited industrial
during the last 3 years - Hilton, Hyatt, Melià and formerly and logistics presence on its coasts, which makes
Sheraton, have all established a presence. most of the bays, gulfs and peninsulas unspoiled and
pristine. S&B resorts development, if adequately
2019 will be a crucial year: in May 2018 the Government planned, is the key opportunity.
launched a FDI incentive plan dedicated to hotels
and resorts, to further support chains’ curiosity and •
Tirana yet open to greenfield projects
some initial impacts are already evident. Hotels size Tirana has recently welcomed 2 Best Western, a
is still limited and the industry is highly fragmented. planned re-branding of a former Sheraton into a
Key Statistics 2018
With the exclusion of ten hotels which survived during Park Hyatt, a Garden Inn and other international
Total chain hotels 12 communism, 90% of the Albanian hotel portfolio was brands have been announced. The capital is vibrant in
Total chain rooms 736 started during the late 90s, with most development terms of international demand curiosity and open to
Average size per chain hotel in rooms 61.3 happening over the last 7-8 years. Hotel chains cover 1% greenfield projects to be located within wider plans of
of the hotels portfolio for less than a thousand rooms. re-building of central and peripheral districts.
Country hotels stock (overall supply) 622
Country rooms Stock (overall supply) 12,400
International chains curiosity is growing, together with
Average size per hotel in rooms 19.9
a perception of reduced country business risk, thus
Chain penetration % by hotels 1.9% pipeline projects are abundant and will lead to double
Chain penetration % by rooms 5.9% current branded portfolio in 2-year time. Most future
Total number of brands 4 development will take place in the capital and in coastal
Domestic brands 2 areas of Vlore, especially along the southern coasts facing
Corfù and bordering Greece. If resorts development will
12 International brands 2
be kept under adequate sustainable levels and embraced
Chain Second-tier operated hotels 0
Hotels into a long-term vision, Albania will be able to make the
International chain hotels* 3
6% best out of its tourism in 5 years from now.
Chain Room 2% Domestic chain hotels* 9
penetration Chain Hotel International chain rooms* 211
penetration Zoran Bačić, Senior Partner & Managing Director
Domestic chain rooms* 525 Horwath HTL Italy
* Includes double counting

Note: Albania is a new market to report - only 2018 data available
Albania: Business Model Albania: Ranking by Destination Albania: Pipeline (2018/19)
BY HOTELS Rank Destination By Hotels Rank Destination Hotel Rooms
Franchising % Lease % Owned % Total % 1 Tirana 4 1 Durres 1 350

2 Kavaje 3 2 Palase 1 180
Midscale - - 5 100% - - 5 100%
3 Durres 3 3 Tirana 2 291
Upscale & U.Upscale 3 43% 3 43% 1 14% 7 100%
TOTAL 3 25% 8 67% 1 8% 12 100% 4 Dhermi 1
5 Gjirokaster 1
BY ROOMS
Rank Destination By Rooms Albania: Institutional Owners
Franchising % Lease % Owned % Total %
1 Durres 272
Midscale - - 153 100% - - 153 100%
Rank Name No. of Keys
2 Tirana 230
Upscale & U.Upscale 211 36% 239 41% 133 23% 583 100%
1 Bank of Albania 98
3 Kavaje 194
TOTAL 211 29% 392 53% 133 18% 736 100% Source: Real Capital Analytics, Inc. 2019
4 Dhermi 20
5 Gjirokaster 20
Albania: Ranking by Size Albania: Ranking per Scale & Size 250
253
240
CHAINS CHAINS OVERALL 222
200 209
Rank Chain Groups Hotels Rooms Hotels Rooms % Avg.
187
1 Harmonia Hotels Group 5 448 Midscale 5 153 20.8% 31

159
2 Hilton 1 143 Upscale & U.Upscale 7 583 79.2% 83 150
150
143
3 Albanian Resort 4 77 TOTAL 12 736 100% 61 131
4 Best Western 2 68 120

107
100
97
Domestic Chain Groups Hotels Rooms 89
80 73
70 70 68 69
1 Harmonia Hotels Group 5 448 66 63
60
50
50 50 51
2 Albanian Resort 4 77 39
43 44 41 45 43 28 25 23
19 19
26 26
22
13 13 7
19 22 21 21 19 4
International Chain Groups Hotels Rooms 10
16 16
10
7
3 4 7
12
6
13 2 11 1 12 2 5 2 2
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2 Best Western 2 68
Croatia
Croatia is seen as one of most attractive destinations

of the Mediterranean, yet the hotel sector is dominated
by domestic chains. However, project pipeline is
strongly inclined towards international brands.

The Croatian hotel market is stagnating in supply •
Domestic chains main driver of growth
development (1% increase in overall room stock supply Domestic Chains have been active on the investment
in 2018) primarily due to the current market being market with major chains opening at least one new
favourable for development of private accommodation property in 2018 – Top 5 chains added 11 properties
(i.e. low taxes, regulatory environment) and low incentives and 2,5 thousand new rooms to the market. Other
for hotel development, which is the key reason for players have been primarily focused on development
the dominance of domestic hotel chains (9% of hotel of small hotels.
companies are generating 85% of total industry revenue).
•
New brands from domestic chains
High seasonality and the current level of ‘doing business Most of the leading domestic players have engaged
in Croatia’ (ranked 58th overall, and 159th in dealing into a portfolio branding process increasing the
Key Statistics 2017 2018 % Diff.
with construction permits) is still a major barrier for number of domestic brands of the market. This trend
Total chain hotels 167 186 11% international investors, especially in terms of overtaking is aligned with the European market developments,
Total chain rooms 30,808 33,923 10% development and ownership risks – however there are however the motives of this process are still to be
Average size per chain hotel in rooms 184 182 -1% positive examples on the market which may boost the revealed (i.e. sale of portfolio, regional expansion) .
investors’ confidence.
Country hotels stock (overall supply) 684 724 6%
•
Hotel market still betting on summer season
Country rooms Stock (overall supply) 57,885 58,437 1%
In 2018, we saw growth (RevPar 16% YoY), however with Even though Zagreb is on the rise (with 3 new
Average size per hotel in rooms 85 81 -5%
a slowdown risk coming from the Mediterranean recovery internationally branded projects in pipeline) the
Chain penetration % by hotels 24.42% 25.69% 5% and the price driven growth strategies without significant main part of the pipeline is focused on the coastal
Chain penetration % by keys 53.22% 58.05% 9% incremental increase in value-added offering starting to areas (75% of total pipeline) and into recognised
Total number of brands 20 43 115% loose its competitiveness. On the other hand, the pre and destinations (Hvar, Dubrovnik, Rovinj, Poreč).
Domestic brands 5 23 360% post season offers significant upside potential, which can
be captured with smart initiatives and management.
186 International brands 15 22 47%
Zagreb as the only ‘continental’ destination that is on the
Chain International chain hotels* 57 45 -21%
Hotels rise, with 3 new chain hotels in 2018, and 3 new in the
Domestic chain hotels* 119 163 37%
58% pipeline.
Chain Room 26% International chain rooms* 13,168 8,927 -32%
penetration Chain Hotel Domestic chain rooms* 20,110 30,272 51%
penetration Siniša Topalović, ISHC, Managing Partner
Horwath HTL Croatia
Increase of international brands is dominantly the result of the international brand
counting methodology
Croatia: Ranking by Size Croatia: Ranking by Scale
CHAINS BRANDS DOMESTIC BRANDS INTERNATIONAL BRANDS
Rank Chain Groups Hotels Rooms Rank Chain Brands Hotels Rooms Rank Economy & Midscale Hotels Rooms Rank Economy & Midscale Hotels Rooms
1 Valamar Riviera 35 7,135 1 Valamar Hotels and Resorts 18 3,513 1 Sunny by Valamar 9 2,330 1 Falkensteiner 1 240
2 Plava Laguna 22 5,777 2 Bluesun Hotels & Resorts 13 2,281 2 Plava laguna 7 2,313 2 Park Plaza hotels 1 188
3 Liburnia Riviera Hoteli 16 2,636 3 Plava laguna 12 3,446 3 Bluesun Hotels & Resorts 6 1,169 3 Sol Hotels - Meliá 1 179
4 Bluesun H&R 14 2,442 4 Amadria Park 10 1,756 4 Jadran Crikvenica H&C 5 257 4 Best Western 1 40
5 Amadria Park 12 2,050 5 Sunny by Valamar 9 2,330 5 Hoteli Maestral 4 372
6 Meliá Hotels International 10 2,331 6 Sol Hotels - Meliá 8 1,901 6 Valamar Hotels and Resorts 3 701
7 HUP-Zagreb 9 1,831 7 Jadran Crikvenica H&C 8 562 7 Suncani Hvar Hotels 3 314
8 Maistra 9 1,695 8 Remisens Hotels 7 1,379 8 Remisens S.Selection Hotels 3 337
9 Adriatic Luxury Hotels 9 1,585 9 Lošinj Hotels & Villas 7 1,343 9 Remisens Hotels 2 378
10 Jadran Crikvenica H&C 8 562 10 Suncani Hvar Hotels 6 760 10 Adriatic Luxury Hotels 2 185
Domestic Chain Groups Hotels Rooms Domestic Chain Brands Hotels Rooms Rank Upscale & Upper Upscale Hotels Rooms Rank Upscale & Upper Upscale Hotels Rooms
1 Valamar Riviera 35 7,135 1 Valamar Hotels and Resorts 18 3,513 1 Valamar Hotels and Resorts 15 2,812 1 Sol Hotels - Meliá 7 1,722
2 Plava Laguna 22 5,777 2 Bluesun Hotels & Resorts 13 2,281 2 Amadria Park 7 1,315 2 Park Plaza hotels 2 795
3 Liburnia Riviera Hoteli 16 2,636 3 Plava laguna 12 3,446 3 Bluesun Hotels & Resorts 7 1,112 3 Falkensteiner 4 638
4 Bluesun H&R 14 2,442 4 Amadria Park 10 1,756 4 Remisens Hotels 5 1,001 4 Sensimar 3 342
5 Amadria Park 12 2,050 5 Sunny by Valamar 9 2,330 5 Lošinj Hotels & Villas 5 1,078 5 Radisson blu 1 254
6 HUP-Zagreb 9 1,831 6 Jadran Crikvenica H&C 8 562 6 Plava laguna 5 1,133 6 Karisma hotels 1 209
7 Maistra 9 1,695 7 Lošinj Hotels & Villas 7 1,343 7 Valamar Collection Resorts 3 470 7 TUI Family Life 1 200
8 Adriatic Luxury Hotels 9 1,585 8 Remisens Hotels 7 1,379 8 Suncani Hvar Hotels 3 446 8 Lifeclass 1 157
9 Jadran Crikvenica H&C 8 562 9 Suncani Hvar Hotels 6 760 9 Jadran Crikvenica H&C 3 305 9 Doubletree Hilton 1 152
10 Lošinj Hotels & Villas 7 1,343 10 Ilirija hotels and resorts 5 446 10 Ilirija hotels and resorts 3 338 10 Canopy 1 151
International Chain Groups Hotels Rooms International Chain Brands Hotels Rooms Rank Luxury Hotels Rooms Rank Luxury Hotels Rooms
1 Meliá Hotels International 10 2,331 1 Sol Hotels - Meliá 8 1,901 1 Maistra Collection 2 349 1 Sheraton 2 557
2 Falkensteiner 6 1,088 2 Falkensteiner 6 1,088 2 Lošinj Hotels & Villas 2 265 2 Le Meridien Lav 1 381
3 TUI 5 703 3 Park Plaza hotels 3 983 3 Amadria Park 2 115 3 The Westin 1 291
4 PPHE 5 1,397 4 Sheraton 2 557 4 Valamar Collection 1 292 4 Rixos 1 254
5 Marriott International 4 1,229 5 Meliá Hotels and Resorts 2 430 5 Remisens 1 249 5 Falkensteiner 1 210
6 Hilton Woldwide 3 452 6 Le Meridien Lav 1 381 6 Valamar Collection Resorts 1 54 6 Kempinski 1 186
7 Best Western 2 140 7 Sensimar 3 342 7 TUI Blue 1 161
8 Holleis Hotels 2 221 8 The Westin 1 291 8 Hilton 1 149
9 Carlson Rezidor 1 254 9 Rixos 1 254
10 Rixos 1 254 10 Radisson Blu 1 254
Croatia: Ranking per Scale & Size Croatia: Ranking by Destination
CHAINS OVERALL DOMESTIC INTERNATIONAL Rank Destination Hotels Rank Destination Rooms
Hotels Rooms Hotels Rooms Hotels Rooms 1 Poreč 22 1 Poreč 5,140
Budget & Economy 11 1,953 10 1,713 1 240 2 Dubrovnik 19 2 Dubrovnik 3,537
Midscale 45 8,068 42 7,661 3 407 3 Opatija 17 3 Umag 2,331
Upscale & U.Upscale 92 16,851 66 11,846 26 5,005 4 Zagreb 11 4 Opatija 2,104
Luxury 25 4,990 16 2,801 9 2,189 5 Umag 10 5 Zagreb 1,737
TOTAL 173 31,862 134 24,021 39 7,841 6 Crikvenica 7 6 Šibenik 1,486

7 Rovinj 7 7 Rovinj 1,450
8 Rabac 6 8 Cavtat 1,133
9 Hvar 6 9 Rab 977
Croatia: Business Model 10 Šibenik 6 10 Rabac 975
BY HOTELS
Franchise % Lease % Mgt Cont % Owned % Total %

Economy - - - - - - 13 8% 13 7% Croatia: Pipeline (2018/19) Croatia: Demand Driver
Midscale 2 11% - - - - 48 30% 50 27%
Upscale & U.Upscale 11 61% 5 83% 2 50% 79 50% 97 52% Rank Destination Hotels Rooms DRIVER DOMESTIC INTERNATIONAL
Luxury 5 28% 1 17% 2 50% 18 11% 26 14% 1 Zagreb 14 2,265 Hotels Rooms Hotels Rooms
TOTAL 18 10% 6 3% 4 2% 158 85% 186 100% 2 Hvar 9 1,075 Art & Business 1 112 8 1,675
BY ROOMS 3 Šibenik 7 1,736 Sun & Beach 133 24,024 29 5,829
4 Rovinj 8 1,659 Other Leisure 1 65 1 157
5 Dubrovnik 16 3,737
Economy - - - - - - 2,224 8% 2,224 7%
Midscale 219 6% - - - 8,639 30% 8,858 26% 6 Opatija 18 2,299
Upscale & U.Upscale 2,305 61% 578 78% 411 42% 14,356 50% 17,650 52% 7 Split 3 828
Luxury 1,247 33% 161 22% 567 58% 3,216 11% 5,191 15% 8 Zadar 5 814
TOTAL 3,771 11% 739 2% 978 3% 28,435 84% 33,923 100% 9 Poreč 23 5,248
250
253
Croatia: Hotel Investors 2018 Croatia: Institutional Owners 2018

240
222
200 209
187
Rank Name Volume in €m Rank Name No. of Keys
1 PBZ Croatia Osiguranje 6.8 1 PBZ Croatia Osiguranje 830
159
150
150 2 Erste Bank 6.8 2 Hypo Alpe-Adria-Bank 359
143
131 Source: Real Capital Analytics, Inc. 2019 3 Erste Bank 306
120 4 Raiffeisen Bank 84
100 107
97 5 Podravska Banka 80
89
80 73 Source: Real Capital Analytics, Inc. 2019
70 70 68 69
66 63
60
50
50 50 51
43 44 45 43
39 41 28 25 23
19 19
26 26
22
13 13 7
16 19 22 21
7
21 19 7 4
16 3 4 6 12 5
10 10 12 13 2 11 1 2 2 2
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Cyprus
International chains are a new phenomenon.

For decades, only a few domestic brands were
present in the market. This is now changing as
international brands see the opportunities.

Tourism in Cyprus in recent years has surpassed •
The opportunities
expectations. 2019 was a record year with the highest By 2030, Cyprus tourism strategy envisages stronger
arrivals ever reaching a peak 3.94m compared to 3.6m links to premium tourism models (thus further
in 2017 and 2.6m in 2016 enjoying an increase of 13% improving quality versus quantity) whilst more than
compared to 2018 and a 5th consecutive year of growth. 20,000 beds are still needed to cover the needs.
Major countries of tourism origin remain UK, Russia, •

Local Brands
Germany, Greece and Sweden and major months of A number of successful local brands such as Olympic
arrivals being the period May - October. Lagoon and Anvani have sprung, having already
expanded in the local area (Greece and Malta) and look
The most preferred geographical destinations were promising for the near future.
Paphos and Ayia Napa – Protaras and 3-4 star hotels
Total chain hotels 50 51 2.00 appear to be the most popular format. •
International chains
Total chain rooms 9,595 9,701 1.10 International chains seek further expansion on the
Average size per chain hotel in rooms 192 190 (0.88) Hotels occupancy has expectedly increased throughout island whilst long-existing chains also wish further
whilst seasonality in some districts is declining. This growth. A number of new chains are testing the waters
Country hotels stock (overall supply) 228 236 3.51
has driven the building of new hotels. The positive for presence in Cyprus. The exceptionally good results
Country rooms Stock (overall supply) 54,746 56,245 2.74
developments in tourism has increased the interest of of tourism and premium strategy will become the
Average size per hotel in rooms 240.1 238.3 (0.74)
foreign investors for hotel acquisitions and new buildings catalyst to attract quality driven brands.
Chain penetration % by hotels 21.93% 21.61% (0.32) (high stars and with more keys)
Chain penetration % by rooms 17.53% 17.25% (0.28)
Total number of brands 7 7 - Christos Michaelides, Managing Director
Horwath HTL Cyprus
Domestic brands 2 2 -
51 International brands 5 5 -
Chain Second-tier operated hotels 2 2 -
Hotels
International chain hotels* 7 7 -
17%
Chain Room 22% Domestic chain hotels* 45 45 -
penetration Chain Hotel International chain rooms* 1,120 1,120 -
penetration
Domestic chain rooms* 8,351 8,351 -
Cyprus: Ranking by Size Cyprus: Ranking by Scale
1 Tsokkos Hotels 15 2,540 1 Atlantica 13 1,730 1 Atlanica 2 268 1 Atlanica 2 268

2 Louis Hotels 12 2,257 2 Olympic 3 520 2 Tsokkos 4 528 2 Tsokkos 4 528
3 Atlantica Hotels 10 2,044 3 Hilton 2 488
Rank Upscale & Upper Upscale Hotels Rooms Rank Upscale & Upper Upscale Hotels Rooms
4 Kanika hotels 6 1,122 4 Golden Tulip 1 193
1 Louis Hotels 11 2,053 1 Hilton 1 194
5 Leptos Hotels 2 524 5 Marriott 1 189
2 Atlanitca 5 1,227 2 IHG 1 144
6 Hilton 2 488 6 Crown Plaza 1 144
3 Kanika Hotels 2 377
7 Louvre hotels 1 193 7 Radisson Blu 1 106
8 Marriott 1 189 Rank Luxury Hotels Rooms Rank Luxury Hotels Rooms
9 IHG 1 144 1 Kanika Hotels 4 745 1 Hilton 1 294
10 Radisson 1 106 2 Atlantica 2 549 2 Louvre hotels 1 193

3 Louis Hotels 1 204 3 Marriott 1 189
Domestic Chain Groups Hotels Rooms Domestic Chain Brands Hotels Rooms
4 Radisson 1 106
1 Tsokkos Hotels 15 2,540 1 Atlantica 10 2,044
2 Louis Hotels 12 2,257 2 Olympic 3 520
3 Atlantica Hotels 10 2,044 3 Made for 2 1 155
Cyprus: Ranking by Destination
4 Kanika hotels 6 1,122
Rank Destination Hotels Rooms
5 Leptos Hotels 2 524
1 Paphos 16 3,766
International Chain Groups Hotels Rooms International Chain Brands Hotels Rooms
2 Protaras 15 2,186
1 Hilton 2 488 1 Hilton 2 488 3 Ayia Napa 8 1,333
2 Louvre hotels 1 139 2 Golden Tulip 1 139 4 Limassol 7 1,399
3 Marriott 1 189 3 Design 1 189 5 Nicosia 2 488
4 IHG 1 144 4 Crown Plaza 1 144 6 Larnaca 2 299
5 Radisson 1 106 5 Radisson Blu 1 106
250
253
240
Cyprus: Ranking per Scale & Size 222
200 209
187
CHAINS DOMESTIC INTERNATIONAL
Hotels Rooms % Avg Size Hotels Rooms Hotels Rooms 150

159
150
143
Budget & Economy 63 2,631 9 42 65 19 - - 131
Midscale 79 8,195 29 104 79 8,195 - - 120

100 107
Upscale & U.Upscale 58 11,142 40 192 56 10,804 2 338 97
89
80 73
Luxury 26 6,153 22 237 22 5,371 4 782 70 70 68 69
66 63
60
TOTAL 226 28121 100 574 222 24389 6 1120 50
50 50 51
43 44 45 43
39 41 28 25 23
19 19
26 26
22
13 13 7
16 19 22 21
7
21 19 7 4
16 3 4 6 12 5
10 10 12 13 2 11 1 2 2 2
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Denmark
The market has very few brands of any description,

but the brands they do have, have critical mass.
23% of hotels and 48% of rooms have a brand
affiliation.

This is the first time that Denmark has featured in the •
Upscale segments predominate
report. The Danish market is small, with 133 chain The Danish hotel market is heavily skewed towards
hotels, 6th lowest, out of 22 markets covered, with only what used to be called four star Hotels. Recently
23 brands, well below the report average of 81. The however, there are signs that the popular ‘budget
penetration of chain hotels and rooms is relatively high design’ segment that has become prevalent in Europe
though, with branded hotels making up 23% of hotel is being developed. Arp Hansens ‘Wakeup’ brand
stock and bedrooms almost 50%. This is reflected in the is a good example.
average size of the hotels, with chain affiliated hotels
having an average of 176 rooms as opposed to the •
Few brands, but highly branded
average market size of 83. The market has very few brands of any description,
but the brands they do have, have critical mass. 23%
Key Statistics 2018
The majority of chain affiliated hotels are in the upscale of hotels and 48% of rooms have a brand affiliation.
Total chain hotels 133 and upper upscale segment with 85 hotels equating
Total chain rooms 22,565 to 14,802 rooms. The budget and economy sector is
Average size per chain hotel in rooms 170 the next larger with 26 hotels, and finally the midscale
segment with 20 hotels. The economy and midscale
segments is exclusively made up of local players, but the
higher tier is an almost 50-50 split between domestic and
Average size per hotel in rooms 83
international brands.
Chain penetration % by hotels 23.3%
Chain penetration % by rooms 47.5% In terms of groups, local player Arp Hansen has a total
Total number of brands 23 of 13 hotels, which are branded under their ‘Wakeup’
Domestic brands 4 economy flag, the rest are owned and managed but
unbranded. The next largest is Swedish Hotel company
Scandic, which has 26 hotels equating to 4,623 rooms.
Chain International chain hotels* 110
Hotels
Domestic chain hotels* 23
48% The transactional market in Denmark is small compared
Chain Room 23% International chain rooms* 20,037 to the rest of Europe, with only 10 transactions being
penetration Chain Hotel Domestic chain rooms* 2,528
penetration registered during the course of the year.
Note: Denmark is a new market to report - only 2018 data available James Chappell, Global Business Director
Horwath HTL Global
Denmark: Ranking by Size Denmark: Ranking per Scale & Size
CHAINS BRANDS CHAINS DOMESTIC INTERNATIONAL
Rank Chain Groups Hotels Rooms Rank Chain Brands Hotels Rooms Hotels Rooms % Avg Size Hotels Rooms Hotels Rooms
1 Arp Hansen Group 13 4,585 1 Scandic 26 4,623 Budget & Economy 26 5,627 20% 216 26 5,627 - -
2 Scandic 26 4,623 2 Comwell 14 1,993 Midscale 20 2,136 15% 107 20 2,136 - -
3 Comwell 14 1,993 3 Wakeup 4 1,908 Upscale & U.Upscale 85 14,802 65% 174 41 6054 44 8,748
4 Radisson 7 1,779 4 Radisson Blu 5 1,223 TOTAL 131 22,565 100% 172 87 13,817 44 8,748
5 Nordic Choice Hotels 5 1,440 5 First 7 1,038
6 Marriott International 3 1,295 6 Zleep Hotels 10 995
7 Best Western 15 1,234 7 Best Western 9 644
8 First 7 1,038 8 Best Western Plus 5 516
250
253
9 Zleep Hotels 10 995 9 Hotel Guldsmeden 6 458
240
10 Hotel Guldsmeden 6 458 10 Quality 2 394
222
200 209
187
1 Arp Hansen Group 13 4,585 1 Comwell 14 1,993
2 Comwell 14 1,993 2 Wakeup 4 1,908 150
159
150
143
3 Zleep Hotels 10 995 3 Zleep Hotels 10 995 131
4 Hotel Guldsmeden 6 458 4 Hotel Guldsmeden 6 458 120

100 107
5 Helnan Hotels 1 160 97
89
80 73
International Chain Groups Hotels Rooms International Chain Brands Hotels Rooms 66
70 70 68
63
69
60
50
50 50 51
1 Scandic 20 3,631 1 Scandic 20 3,631 39
43 44 41 45 43 28 25 23
19 19
2 Best Western 15 1,234 2 Best Western 9 644 26
16 19
26
22 21
7
21 22
19 7
13 13 7
4
16 3 4 6 12 5
10 10 12 13 2 11 1 2 2 2
3 Radisson 7 1,779 3 First 7 943 0
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5 Choice Hotels International 5 1,440 5 Best Western Plus 5 516
6 Marriott International 4 1,515 6 Quality 2 394
7 Intercontinental Hotels Group 1 366 7 AC Marriot 1 812
8 Meininger 1 228 8 Marriott 1 402
9 Toga Far East Hotels 1 128 9 Comfort 1 400
10 Clarion 1 378
With thanks to Benchmarking Alliance for their support with Danish data.
France
2018 was a record year for French tourism as

demand was sustained by long-haul travelers, from
China and North America. Looking forward, the
2024 Olympics is a good target for developers.

2018 was another record year for French tourism as •
49% European room inventory
demand is sustained by long haul travelers, especially France shows the highest chain penetration in Europe
from China and North America. at 49% of the room inventory. At the time consortia
tend to lose affiliates, franchisors are growing at a fast
As a result, Paris RevPAR recorded a double digit growth. pace.
The market dynamics of the French capital is very strong
and expand as an oil spot to the surrounding region of •
Accor setting the pace
Ile de France and specifically in La Defense and the Accor remains by far the leading player followed by
airports. Louvre Hotel Group and B&B Hotels. The French
hotel giant takes advantage of a very diversified brand
The provinces remain, with the exception of the French portfolio from budget to luxury that develops though
Alps and Côte d’Azur, mostly impacted by domestic and acquisitions and creations. Originally owner and
Total chain hotels 3,816 3,885 1.8% short haul tourism. As a result the growth in performance operator, Accor develops successfully in France as a
Total chain rooms 319,561 320,060 0.2% remains moderate even in the top ten metros. franchisor.
Average size per chain hotel in rooms 84 82 -1.9%
Country hotels stock (overall supply) 18,382 18,079 -1.6% Despite the yellow jacket protests which took place •
Brand rooms on the rise
Country rooms Stock (overall supply) 659,773 652,698 -1.1% during November and December, consolidated French Whereas the overall chain supply grows moderately,
RevPAR recorded a growth over 7% according to STR. the number of rooms under international brands is on
Average size per hotel in rooms 36 36 0.3%
the rise and underlines the maturity of the market of a
Chain penetration % by hotels 21% 21% 2.3%
The main question raised for 2019 concerns the more diversified hotel supply with and increasing share
Chain penetration % by rooms 48% 49% 2.2%
sustainability of this growth in RevPAR with regards of hostels, lifestyle and luxury hotels.
Total number of brands 107 120 12.1% to country’s social climate. On the longer term still,
Domestic brands 52 50 -3.8% prospects for French hotels remain good in the
International brands 55 70 27.3% perspective of the 2024 Olympics and the country is
3,885 on the agenda of most hotel developers.
Chain International chain hotels* 673 599 -11.0%
Hotels Domestic chain hotels* 3,146 3,286 4.5%
49%
Philippe Doizelet, Managing Partner
International chain rooms* 53,949 60,254 11.7%
Chain Room 21% Horwath HTL France
penetration Chain Hotel Domestic chain rooms* 256,538 259,806 1.3%
penetration
France: Ranking by Size France: Ranking by Scale
1 AccorHotels 1,713 153,180 1 Ibis Hotels 395 34,589 1 Ibis Hotels 395 34,589 1 Best Western 170 8,477
2 Louvre Hotels Group 851 56,248 2 Ibis Budget 350 26,962 2 Ibis Budget 350 26,962 2 Best Western Plus 79 4,812
3 B&B 275 21,391 3 Mercure 259 24,676 3 Mercure 259 24,676 3 Comfort Hotel 62 3,417
4 Best Western 282 15,142 4 B&B 275 21,391 4 B&B 275 21,391 4 Holiday Inn 29 3,357
5 Marriott/Starwood 51 8,932 5 Campanile 319 20,224 5 Campanile 319 20,224 5 Disneyland Hotels & Resorts 3 2,994
6 IHG 57 7,954 6 Hotelf1 237 17,863 6 Hotelf1 237 17,863 6 Citadines Apart'hotel 24 2,680
7 Brit Hotel Groupe 138 6,526 7 Première Classe 242 17,418 7 Première Classe 242 17,418 7 Quality Inn 24 2,108
8 Choice 98 6,480 8 Novotel 113 15,452 8 Kyriad 231 13,844 8 Holiday Inn Express 15 1,701
9 Disneyland Hotels & Resorts 6 5,206 9 Kyriad 231 13,844 9 Ibis Styles 196 13,786 9 Comfort Suites 7 664
10 The Ascott Limited 27 2,913 10 Ibis Styles 196 13,786 10 Brit Hotel Comfort 102 4,794 10 Sure Hotel by Best Western 6 306
1 AccorHotels 1,713 153,180 1 Ibis Hotels 395 34,589 1 Novotel 113 15,452 1 Radisson Blu 13 2,463
2 Louvre Hotels Group 851 56,248 2 Ibis Budget 350 26,962 2 Pullman 13 3,652 2 Disneyland Hotels & Resorts 3 2,212
3 B&B 275 21,391 3 Mercure 259 24,676 3 Novotel Suites 21 2,369 3 Marriott Hotels & Resorts 6 1,936
4 Brit Hotel Groupe 138 6,526 4 B&B 275 21,391 4 Barrière 16 2,301 4 Crowne Plaza 7 1,647
5 Oceania Hotels 28 2,539 5 Campanile 319 20,224 5 Mgallery 25 1,782 5 Hyatt Regency 3 1,562
6 Dynamique Hôtels 47 2,377 6 Hotelf1 237 17,863 6 Chateauform' Les Maison 24 1,519 6 Courtyard By Marriott 8 1,382
7 Barrière 16 2,301 7 Première Classe 242 17,418 7 Les Hotels De Paris 21 987 7 Le Méridien 2 1,343
8 Chateauform' 28 2,040 8 Novotel 113 15,452 8 Chateauform' Campus 3 479 8 Hilton 5 1,228
9 All Suites Appart Hôtel 11 1,873 9 Kyriad 231 13,844 9 Temmos 5 397 9 Renaissance Hotels & Resorts 7 1,031
10 Groupe Hôtelier Bataillé 26 1,731 10 Ibis Styles 196 13,786 10 25hours 1 237 10 Best Western Premier 17 976
1 Best Western 282 15,142 1 Best Western 170 8,477 1 Sofitel 11 1,509 1 InterContinental Hotels 5 1,192
2 Marriott/Starwood 51 8,932 2 Disneyland Hotels & Resorts 6 5,206 2 Raffles 1 149 2 Unbound Collection by Hyatt 2 586
3 IHG 57 7,954 3 Best Western Plus 79 4,812 3 Four Seasons 3 373
4 Choice 98 6,480 4 Comfort Hotel 62 3,417 4 JW Marriott Hotels & Resorts 1 261
5 Disneyland Hotels & Resorts 6 5,206 5 Holiday Inn 29 3,357 5 Fraser Suites 2 248
6 The Ascott Limited 27 2,913 6 Citadines Apart'hotel 24 2,680 6 The Luxury Collection 2 234
7 Radisson Hotel Group 15 2,741 7 Radisson Blu 13 2,463 7 The Peninsula Hotel 1 200
8 Hyatt 8 2,455 8 Quality Inn 24 2,108 8 Park Hyatt 1 153
9 Hilton 11 1,939 9 Marriott Hotels & Resorts 6 1,936 9 Rosewood Hotel Group 1 147
10 Melia' Hotels International 7 965 10 Holiday Inn Express 15 1,701 10 Shangri-La Hotels & Resorts 1 101
France: Ranking per Scale & Size France: Ranking by Destination
CHAINS OVERALL DOMESTIC INTERNATIONAL Rank Destination By Hotels Rank Destination By Rooms
Hotels Rooms % Avg Size Hotels Rooms Hotels Rooms 1 Paris 375 1 Paris 42,109
Budget & Economy 1144 87,488 27% 76 1135 85,123 9 2,365 2 Marseille 66 2 Lyon 7,121
Midscale 2316 173,232 54% 75 1896 143,808 420 29,424 3 Lyon 64 3 Marseille 6,754
Upscale & U.Upscale 391 53,759 17% 137 243 29,217 148 24,542 4 Nice 49 4 Nice 5,734
Luxury 34 5,581 2% 164 12 1,658 22 3,923 5 Toulouse 47 5 Bordeaux 4,766
TOTAL 3,885 320,060 100% 82 3,286 259,806 599 60,254 6 Bordeaux 43 6 Toulouse 4,577
7 Strasbourg 38 7 Strasbourg 3,571
8 Lille 31 8 Cannes 3,512
France: Business Model 9 Nantes 30 9 Roissy-en-France 3,144

10 Cannes 27 10 Coupvray (Disneyland) 3,100
BY HOTELS

Economy 500 26% 1 7% 89 26% 528 55% 1,118 34% France: Pipeline (2018/19)
Midscale 1,305 67% - - 13 4% 8 1% 1,326 41%
Upscale & U.Upscale 129 7% 8 57% 194 57% 334 35% 665 20% Rank Destination Hotel Rooms
Luxury 3 - 5 36% 46 13% 89 9% 143 4%
1 Paris 16 2,625
TOTAL 1,937 100% 14 100% 342 100% 959 100% 3,252 100%
2 Roissy Airport Area 6 836
BY ROOMS 3 Nice 4 597
4 Saint-Étienne 4 324
5 Toulouse 3 346
Economy 34,375 25% 98 4% 7,088 18% 44,714 46% 86,275 31%
6 Bordeaux 3 338
Midscale 87,806 64% 0 0% 2,807 7% 1,027 1% 91,640 33%
7 Lille 2 268
Upscale & U.Upscale 14,813 11% 1098 46% 17,523 46% 36,739 38% 70,173 25%
8 Strasbourg 2 259
Luxury 391 0% 1166 49% 11,041 29% 15,460 16% 28,058 10%
9 Marseille 2 183
TOTAL 137,385 100% 2362 100% 38,459 100% 97,940 100% 276,146 100%
10 Cahors 2 139
250
253
240
222
209
France: Hotel Investors 2018 France: Institutional Owners 2018
200
187
150
159 1 Henderson Park 550.0 1 Credit Mutuel-CIC 6,265
150
143
2 Hilton 80.0 2 Credit Agricole 6,031
131
120
3 CitizenM 80.0 3 Schroders 3,098
107
100
97
4 Schroders 65.5 4 LFPI 2,970
89
80 73
5 Trocadero Capital Partners 62.2 5 QIA 2,756
70 70 69
66 68
63
60
50
50 50 51
43 44 45 43
39 41 28 25 23
19 19
26 26
22
13 13 7
16 19 22 21
7
21 19 7 4
16 3 4 6 12 5
10 10 12 13 2 11 1 2 2 2
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Germany
The German market is still dynamic, growing by

more than 16,000 rooms and 200 hotels last
year. As more exciting concepts are developed,
chain penetration levels will continue to grow.

The German market is strongly influenced by the •
Motel One becomes 5th largest chain
individual hotel industry. 88.9% of Germany’s total Motel One with 50 hotels and over 14,000 rooms
hotel stock (20,029 hotels with 827,861 rooms) is run displaced the Deutsche Hospitality and is now the fifth
independently. largest hotel chain in Germany – a great success for
the family-run company. In 2018, six Motel One hotels
Some well-established chain hotels and their brands with 1,844 rooms were opened.
pushed into the German hotel market and underpinned
the above-mentioned trend in 2018. These include •
Top spots for French B&B
domestic brands Castlewood Hotels, Roomers (Gekko French B&B hotel group is a big winner in the TOP 10
Group) and Ruby Hotels as well as international brands hotel brands. With more than 1,900 rooms (20 new
Swedish Good Morning Hotels (Ligula Hospitality Group), hotels) in 2018, the group climbed to third place of all
Ascend Hotel Collection by the US group Choice Hotels brands and to second place in terms of international
Total chain hotels 2,078 2,217 7% International and the British Wombat’s City Hostels that brands.
Total chain rooms 301,045 317,235 5% have been included in our current census. Furthermore,
Average size per chain hotel in rooms 145 143 -1% established hotel chains have expanded their brand •
Stock to double
portfolio - Deutsche Hospitality with upscale brand According to Whitbread PLC, 31 new Premier Inn
Country hotels stock (overall supply) 20,081 20,029 -0.3%
MAXX by Steigenberger and lifestyle brand Jaz in the hotels with more than 5,700 rooms are planned in
City, as well as Fattal Group (Leonardo Hotels) with the Germany by 2020. Meanwhile, IHG plans to bring 87
Average size per hotel in rooms 40 41 3%
lifestyle brand NYX. new Intercontinental hotels to the German market.
Chain penetration % by hotels 10.3% 11.1% 0.8% That would be more than double of their current hotel
Chain penetration % by rooms 37.1% 38.3% 1.2% The German hotel transaction market shows a few stock in Germany.
Total number of brands 203 222 9% changes in 2018. The year was characterised by the sale
Domestic brands 89 89 0% and closure of two renowned luxury hotels in Berlin: the
former Kempinski Bristol Kurfuerstendamm (sold) and
2,217 International brands 114 131 15%
the Swissôtel Berlin Kurfuerstendamm, which was closed
Chain Second-tier operated hotels - 31 -
Hotels at the end of the year. Furthermore, the Rezidor Group
International chain hotels* 1,241 1,316 6%
38% changed its name to the Radisson Group in 2018.
Chain Room 11% Domestic chain hotels* 837 898 7%
penetration Chain Hotel International chain rooms* 183,826 197,028 7% Christian Ott-Sessay & Olaf Steinhage
penetration Managing Partners
Domestic chain rooms* 117,219 120,207 3% Horwath HTL Germany
Germany: Ranking by Size Germany: Ranking by Scale
1 AccorHotels 371 50,185 1 Mercure 109 15,363 1 Motel One 50 14,084 1 Mercure 108 15,259
2 Best Western 181 18,362 2 Motel One 50 14,084 2 A&O Hotels And Hostels 25 4,788 2 B&B Hotels 122 12,440
3 Marriott International 72 17,492 3 B&B Hotels 122 12,440 3 Novum Hotel 58 4,644 3 Ibis 85 11,283
4 IHG 83 16,737 4 Best Western 120 11,764 4 IntercityHotels 21 3,656 4 Ibis budget 84 8,219
5 Motel One 50 14,084 5 Ibis 85 11,283 5 Meininger Hotels 11 1,811 5 Best Western 58 5,899
6 Deutsche Hospitality 75 13,454 6 Maritim 33 9,674 6 Centro Hotels 31 1,714 6 Holiday Inn Express 38 5,807
7 B&B Hotels 122 12,440 7 NH Hotels 49 8,221 7 Achat Comfort 15 1,657 7 Novotel 21 4,428
8 NH Hotel Group 58 10,444 8 Ibis budget 84 8,219 8 Morada Hotels & Resorts 10 1,229 8 Ibis Styles 32 2,972
9 Maritim Hotelgesellschaft 33 9,674 9 Dorint H&R 42 7,020 9 Ghotel Hotel & Living 7 1,057 9 MOXY Hotels 11 2,089
10 Radisson Hotel Group 39 9,611 10 Steigenberger H&R 37 6,825 10 Derag Livinghotels 3 822 10 Comfort Hotels 17 1,860
1 Motel One 50 14,084 1 Motel One 50 14,084 1 Maritim 33 9,674 1 NH Hotel 45 7,866
2 Deutsche Hospitality 75 13,454 2 Maritim 33 9,674 2 Dorint Hotels & Resorts 34 5,978 2 Holiday Inn 27 6,343
3 Maritim Hotelgesellschaft 33 9,674 3 Dorint H&R 42 7,020 3 H+ Hotels 21 3,030 3 Best Western 62 5,865
4 Novum Hospitality 96 8,452 4 Steigenberger H&R 37 6,825 4 Steigenberger H&R sorts 19 2,989 4 Leonardo Hotels 34 5,536
5 Hospitality Alliance/H-Hotels 46 7,045 5 IntercityHotels 36 6,362 5 Lindner Hotels & Resorts 21 2,896 5 Radisson Blu 20 5,399
6 Dorint 42 7,020 6 Novum Hotels 71 5,617 6 IntercityHotels 15 2,706 6 Best Western Plus 37 4,125
7 A&O H&H 25 4,788 7 A&O Hotels & Hostels 25 4,788 7 Dormero Hotels 21 2,556 7 Hilton 8 2,910
8 Achat Hotel 31 3,751 8 H+ Hotels 30 3,727 8 H4 Hotels 9 2,031 8 Courtyard by Marriott 15 2,691
9 Lindner Hotels 25 3,389 9 Lindner H&R 23 3,050 9 Pentahotels 10 1,909 9 Park Inn By Radisson 9 2,233
10 Centro Hotel Management 53 3,337 10 Dormero Hotels 21 2,556 10 Welcome Hotels 11 1,627 10 Innside by Meliá 13 2,131
1 AccorHotels 371 50,185 1 Mercure 109 15,363 1 Steigenberger H&R 17 3,792 1 Westin Hotels & Resorts 4 1,642
2 Best Western 181 18,362 2 B&B Hotels 122 12,440 2 Roomers 3 526 2 Kempinski 8 1,621
3 Marriott International 72 17,492 3 Best Western 120 11,764 3 A-ROSA 3 522 3 Hilton 4 1,614
4 IHG 83 16,737 4 Ibis 85 11,283 4 Dorint Hotels & Resorts 4 502 4 Sheraton 3 1,570
5 B&B Hotels 122 12,440 5 NH Hotel 49 8,221 5 Althoff Hotel Collection 4 464 5 Marriott 3 1,337
6 NH Hotel Group 58 10,444 6 Ibis budget 84 8,219 6 Dr. Lohbeck Privathotels 2 322 6 Intercontinental H&R 3 1,312
7 Radisson Hotel Group 39 9,611 7 Holiday Inn 29 6,769 7 Vila Vita Hotels 2 278 7 Sofitel 6 1,268
8 Fattal Hotels Group 51 8,847 8 Leonardo Hotels 39 6,378 8 Hyperion Hotels 1 235 8 Le Méridien 4 1,141
9 Hilton Worldwide 31 8,251 9 Radisson Blu 22 6,050 9 Fleming's Selection 1 206 9 Hyatt Regency 3 877
10 Wyndham Hotel Group 51 6,715 10 Holiday Inn Express 38 5,807 10 Derag Livinghotels 1 170 10 Radisson Blu 2 651
Germany: Ranking per Scale & Size Germany: Ranking by Destination
Hotels Rooms % Avg Size Hotels Rooms Hotels Rooms 1 Berlin 221 1 Berlin 44,009
Budget & Economy 440 58,432 18.4 133 100 21,250 340 37,182 2 Munich 153 2 Munich 28,872
Midscale 698 81,617 25.7 117 313 28,752 385 52,865 3 Frankfurt (Main) 144 3 Frankfurt (Main) 27,977
Upscale & U.Upscale 969 152,551 48.1 157 435 61,956 534 90,595 4 Hamburg 136 4 Hamburg 21,129
Luxury 110 24,635 7.8 224 50 8,249 60 16,386 5 Dusseldorf 83 5 Dusseldorf 12,517
TOTAL 2,217 317,235 100 143 898 120,207 1,319 197,028 6 Cologne 71 6 Cologne 11,433
7 Stuttgart 53 7 Stuttgart 8,739
8 Dresden 45 8 Dresden 8,346
Germany: Business Model 9 Leipzig 44 9 Leipzig 6,621
10 Nuremberg 39 10 Nuremberg 5,900
BY HOTELS

Economy 100 16% 203 27% 102 35% 21 7% 426 22%
Midscale 226 36% 171 22% 90 31% 84 29% 571 29%
Germany: Pipeline 2018/19 Germany: Demand Driver
Upscale & U.Upscale 289 45% 351 46% 70 24% 174 61% 884 45%
Rank Destination Hotel Rooms DRIVER Domestic International
Luxury 21 3% 38 5% 32 11% 8 3% 99 5%
TOTAL 636 100% 763 100% 294 100% 287 100% 1,980 100% 1 Hamburg 18 3,896 Hotels Rooms Hotels Rooms
2 Munich 20 3,859
Art & Business 319 49,035 545 95,004
BY ROOMS 3 Berlin 14 3,237
Business Focus 320 44,151 582 81,067
Franchise % Lease % Mgt Cont % Owned % Total % 4 Frankfurt (Main) 13 2,510
Golf 3 382 5 614
Economy 11,216 13% 30,584 26% 11,852 25% 3,627 9% 57,279 19% 5 Dusseldorf 9 2,111
6 Stuttgart 9 1,942 Ski 37 3,964 28 2,523
Midscale 29,920 33% 19,284 17% 13,662 29% 8,617 21% 71,483 24%
7 Leipzig 9 1,805 Sun & Beach 59 7,301 19 2,805
Upscale & U.Upscale 44,118 49% 57,538 49% 13,473 28% 27,568 67% 142,697 48%
Luxury 4,340 5% 9,187 8% 8,581 18% 1,258 3% 23,366 8% 8 Mannheim 10 1,714 Thermal 42 4,948 22 2,235
TOTAL 89,594 100% 116,593 100% 47,568 100% 41,070 100% 294,825 100% 9 Cologne 8 1,280 Wine 2 197 5 491
10 Offenbach (Main) 5 858 Other Leisure 123 11,676 106 10,842
250
253
240
222
209
Germany: Hotel Investors 2018 Germany: Institutional Owners 2018
200
187
150
159 1 Aroundtown 567.0 1 Union Investment 10,664
150
143
2 Art Invest 239.0 2 DekaBank 6,235
131
120
3 Zurich Financial 168.2 3 Patrizia 5,272
107
100
97
4 Invesco 157.0 4 Art Invest 4,009
89
80 73
5 Precise Hotels & Resorts 122.0 5 Invesco 3,320
70 70 69
66 68
63
60
50
50 50 51
43 44 45 43
39 41 28 25 23
19 19
26 26
22
13 13 7
16 19 22 21
7
21 19 7 4
16 3 4 6 12 5
10 10 12 13 2 11 1 2 2 2
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Greece
Greek tourism has managed to hit one record

year after the other in terms of arrivals and
revenues. Greece is now one of the top 15
destinations in the World.

Since the start of the Greek economic crisis in 2010, •
Greek hotels shift upmarket
tourism has been the only sector that remained resilient In 2018, 150 luxury hotels started their operations,
and grew steadily, in terms of arrivals and revenues. resulting to 550 5-star hotels and 1.581 4-star hotels
Greece is recognized for its impeccable sea & sun product, out of total of 9.873 units. This is more than one in
culture & gastronomy, strong city breaks, nautical and five (21,6%) hotels in the country that now belong to
MICE components. The key markets for Greek tourism the top 4-star and 5-star categories.
continue to be Germany, UK, France, Italy, Netherlands,
Austria, Bulgaria, Turkey, Russia and USA. •
Hotel Chains represent ¼ of overall capacity
Although, only 8,06% of hotels are part of a Hotel
Even though revenues and arrivals has grown, hotel Group or Brand, due to their larger size, they represent
supply did not follow at the same pace. The sector is still the 25% of the available beds.
capitalising on existing hotel stock, although in 2018
Total chain hotels 695 730 5.04% there was an increase of numbers in accommodation •
Greek hotel Chains stay domestic
Total chain rooms 94,839 100,021 5.46% capacity. More specifically, we had an increase of 2,9% in Although several domestic hotel groups have
Average size per chain hotel in rooms 136 137 0.41% rooms and a 3,7% increase in beds, despite the fact that developed a strong brand image and position
in total numbers, hotel units remained almost the same. during the past few years, none of them have been
Country hotels stock (overall supply) 9,783 9,874 0.93%
What is worth noting, is the increase of 5-star and 4-star transformed into an international Group, except IKOS
Country rooms Stock (overall supply) 414,127 425,993 2.87%
hotels, by an additional 151 units, highlighting the effort Resorts which will commence operations in Spain and
to upgrade and develop new keys in order to cope with Portugal over the following years.
Chain penetration % by hotels 7.10% 7.39% 4.08% the increased demand.
Chain penetration % by rooms 22.90% 23.48% 2.53%
Total number of brands 198 209 5.56% Greece remains a great investment opportunity for
Domestic brands 153 159 3.92% International hotel chains, since, only 1.7% of total units
operate under an international brand. In 2018 there
730 International brands 45 50 11.11%
was an increase of their market share by almost 15% in
Chain International chain hotels* 198 217 9.60%
Hotels rooms capacity and 12.1% in beds capacity highlighting
Domestic chain hotels* 631 657 4.12%
23% the attractiveness of the Greek tourism product and its
Chain Room 7% International chain rooms* 30,513 33,930 11.20% potential for further development.
penetration Chain Hotel Domestic chain rooms* 78,470 82,978 5.74%
penetration
Xenophon Petropoulos, Managing Director
Horwath HTL Greece
Data Source: Hellenic Hotel Federation
Greece: Ranking by Size Greece: Ranking by Scale
1 Thomas Cook 68 7,268 1 Thomas Cook 38 1,619 1 Caldera Group 8 1067 1 Thomas Cook 30 1,112
2 Grecotel 29 5,523 2 Grecotel 29 5,523 2 Xenos Group Hotels 7 843 2 Marriott 2 17
3 Marriott 28 3,533 3 Mitsis Hotels 17 5,737 3 Minoan Hotels 5 184 3 Labranda 2 40
4 Mitsis Hotels 17 5,737 4 TUI (Sensimar) 14 2,323 4 Vasia Hotels & Resorts 5 278 4 Louis Hotels 2 36
5 TUI 16 4,148 5 Xenos Group Hotels 13 1,254 5 Mast Hotels 4 115 5 Club Med 1 470
6 Xenos Group Hotels 13 1,254 6 Thomas Cook (Sentido) 12 2,558 6 Dhotels 4 136 6 TUI 1 334
7 Louis Hotels 11 2,694 7 Marriott (Luxury Collection) 12 1,319 7 Diana Group Hotels 4 208 7 Best Western 1 42
8 Myconian Collection 10 754 8 Marriott (Design Hotels) 12 859 8 Plaka Hotels 4 157
9 Blue Lagoon Group 10 1,340 9 Myconian Collection 10 754 9 Ioannidis Hotels & Resorts 3 322
10 Hersonissos Group Hotels 9 1,408 10 Blue Lagoon Group 10 1,340 10 Bitzaro Hotels 3 272
1 Grecotel 29 5,523 1 Grecotel 29 5,523 1 Grecotel 15 2,451 1 Thomas Cook 22 3,040

2 Mitsis Hotels 17 5,737 2 Mitsis Hotels 17 5,737 2 Hersonissos Group Hotels 6 946 2 Louis Hotels 8 1,958
3 Xenos Group Hotels 13 1,254 3 Xenos Group Hotels 13 1,254 3 Airotel 6 648 3 Marriott 5 248
4 Myconian Collection 10 754 4 Myconian Collection 10 754 4 Fegoudakis Hotels & Resorts 5 351 4 Best Western 4 402
5 Blue Lagoon Group 10 1,340 5 Blue Lagoon Group 10 1,340 5 Zeus Hotels 5 1,330 5 TUI 4 1,022
6 Hersonissos Group Hotels 9 1,408 6 Hersonissos Group Hotels 9 1,408 6 Amalia Hotels 5 776 6 Dessole Hotels 4 881
7 Caldera Group 9 1,204 7 Caldera Group 9 1,204 7 KD Hotels 5 435 7 Wyndham Hotel Group 3 503
8 Vasia Hotels & Resorts 8 549 8 Vasia Hotels & Resorts 8 549 8 Domotel 5 310 8 Iberostar 2 815
9 Diana Group Hotels 8 404 9 Diana Group Hotels 8 404 9 Xenotel Group Hotels 5 1,229 9 Labranda 2 757
10 Domotel 8 591 10 Domotel 8 591 10 H Hotels 4 1,437 10 Accor 2 268
1 Thomas Cook 68 7,268 1 Thomas Cook 38 1,619 1 Mitsis Hotels 14 5,351 1 Marriott 21 3,268
2 Marriott 28 3,533 2 TUI (Sensimar) 14 2,323 2 Grecotel 12 2,898 2 Thomas Cook 16 3,116
3 TUI 16 4,148 3 Thomas Cook (Sentido) 12 2,558 3 Myconian Collection 10 754 3 TUI 11 2,792
4 Louis Hotels 11 2,694 4 Marriott (Luxury Collection) 12 1,319 4 SANI-IKOS Resorts 8 2,131 4 Preferred Hotels & Resorts 5 363
5 Wyndham Hotel Group 7 1,440 5 Marriott (Design Hotels) 12 859 5 Helios Hotels & Resorts 7 1,416 5 Cronwell 4 604
6 Labranda 7 1,737 6 Thomas Cook (Smart Line) 10 1,386 6 Blue Lagoon Group 6 1,083 6 Wyndham Hotel Group 4 937
7 Best Western 6 564 7 Labranda 7 1,737 7 Aldemar 5 2,188 7 IHG 3 930
8 Preferred Hotels & Resorts 6 433 8 Preferred Hotels & Resorts 6 433 8 Xenos Group Hotels 5 247 8 Labranda 3 940
9 Cronwell 4 604 9 TUI (Family Life) 5 1,656 9 Divani 4 1,140 9 HAYATT 2 514
10 Dessole Hotels 4 881 10 Der Touristik 5 301 10 Aquila Hotels & Resorts 4 1,133 10 Radisson 2 470
Greece: Ranking per Scale & Size Greece: Ranking by Destination Greece: Demand Driver
CHAINS OVERALL DOMESTIC INTERNATIONAL Rank Destination By Hotels DRIVER DOMESTIC INTERNATIONAL
Hotels Rooms % Avg Size Hotels Rooms Hotels Rooms 1 Crete 1,598 Hotels Rooms Hotels Rooms
Budget & Economy 5,094 127,596 51.59% 25 5,069 126,918 25 678 2 Peloponesse 1,218 Sun & Beach 574 83,045 142 20,649
Midscale 2,648 99,286 26.82% 37 2,631 97,738 17 1,548 3 Broader Attica & Islands 649 Culture & Business 57 5,703 24 4,200
Upscale & U.Upscale 1,581 116,145 16.01% 73 1,517 105,077 64 11,068 4 Rodos 537 Other leisure 26 2,348 2 619
Luxury 551 82,966 5.58% 151 461 64,932 90 18,034 5 Halkidiki 513
TOTAL 9,874 425,993 100% 43 9,678 394,665 196 31,328 6 Corfu 408
7 Pieria 384
8 Santorini 364
9 Zakynthos 301
250
253 10 Kos 277
240
Rank Destination By Rooms
222
200 209 1 Crete 94,288

187
2 Rodos 49,471
159
3 Attica 32,250
150
150
143 4 Peloponnese 29,167
131
5 Kos 26,099
120
107
100
97
6 Halkidiki 24,460
89
80 73 7 Kerkyra 24,327
70 70 68 69
66
50
63
60 8 Zakynthos 17,321
50 50 51
45
39
43 44 41 43 28 25 23 9 Pieria 10,289
19 19
26 26 13 13 7
16 16 19 22 21
7
21
3
22
4
19 7 6
2 1 12 2 5 2
4
2
10 Evia 8,771
10 10 12 13 11
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Hungary
The CEE region experienced economic growth

and booming tourism in 2018. As the darling
of operator and investor interest, Hungary is
capitalising on this positive trend.

Demand growth for hotels in Budapest is driven by the •
Another record year in KPIs
large European outbound and US markets. Increasing Revenues at hotels grew by 9% in 2018. Occupancy
diversity of traveller profiles from Asian markets is also reached 75% in Budapest and 56% countrywide,
contributing to the surge in demand with the fastest while ADR averaged 6.6% and 3.4%YoY growth
growth expected from China owing to additional direct respectively. Despite positive trends, growth can only
flights confirmed for 2019. Rural hotels primarily cater to be sustainable going forward if Budapest remains
local demand and international travellers mainly from the the host of large-scale events, which appears to
neighbouring countries. correspond with the agenda on the state to bring more
international sports events to the city, living up to the
Budapest has managed to establish a firm position within commitment to make Budapest the Sporting Capital of
European tourism and now not only competes with other Europe in 2019.
cities in CEE but with major European capitals. Airport
Total chain hotels 146 157 7.5% passenger traffic reached 14.9 million registering a •
Budapest still the unrivalled hot-spot
Total chain rooms 20,863 22,028 5.6% staggering 14.5% y-o-y increase. Of the total hotel guest nights and room revenues,
Average size per chain hotel in rooms 143 140 -1.8% The tourism sector has been the beneficiary of an 40% and 55% have been realized in hotels in Budapest
unprecedented level of state support over the last two respectively in 2018. Amongst the key capital cities in
years. The National Tourism Strategy that has committed CEE, Budapest ranked 3rd with a RevPAR of EUR 70.2
Country rooms Stock (overall supply) 62,274 61,213 -1.7%
EUR 2.6 billion of investment in tourism infrastructure behind Vienna and Prague.
developments across the country substantiates this.
Chain penetration % by hotels 13.3% 15.0% 12.1% •
Home sharing is here to stay
Chain penetration % by rooms 33.5% 36.0% 7.4% A total of 10 hotels opened in Hungary in 2018 of Year round active Airbnb rentals reached over 10,000
Total number of brands 49 48 -2.0% which 6 were in Budapest. This includes Hungary’s first units in 2018, which is approximately 50% of the total
Domestic brands 7 7 0.0% internationally branded airport hotel (ibis Styles), the hotel room supply in Budapest. This supply segment
world’s first smart hotel, the KviHotel, and the Hotel did not exist 5 years ago, yet despite its staggering
157 International brands 42 41 -2.4%
Clark and D8 Hotel, operated by Continental Group. New growth, it helped the destination absorb the growing
Chain Second-tier operated hotels 38 46 21.1%
Hotels property openings will continue in 2019, such as the demand. While this trend is expected to continue,
International chain hotels* 61 63 3.3%
36% Hyatt Unbound Collection and Meininger Hotel. regulations will be inevitable and have already begun
Chain Room 15% Domestic chain hotels* 85 94 10.6%
Attila Radvánszki, Associate Director
in certain districts contributing to the slowing pace
penetration Chain Hotel International chain rooms* 10,881 11,667 7.2%
penetration László Bene, Junior Consultant of supply growth in this relatively new commercial
Domestic chain rooms* 9,982 10,361 3.8% Horwath HTL Hungary accommodation segment.
Hungary: Ranking by Size Hungary: Ranking by Scale
1 Danubius Hotels Group 21 5,142 1 Danubius 19 4,574 1 Hunguest 9 1,597 1 Ibis 5 584
2 AccorHotels 19 3,570 2 Hunguest 20 3,374 2 Danubius 5 1,061 2 Ibis Styles 4 519
3 Hunguest Hotels 20 3,374 3 Accent 19 1,326 3 Accent 7 490 3 Comfort Hotels 1 125
4 Accent Hotel Management 20 1,412 4 Mercure 3 1,078 4 Mellow Mood Hotels 5 326 4 EasyHotel 1 59
5 Marriott 7 1,275 5 Novotel 5 952 5 Hotel and More 3 230 5 The Three Corners 2 80
6 Mellow Mood Hotels 11 820 6 Hotel and More 11 739 6 Service4You 4 188 6 Novum Hotels 1 37
7 Radisson Hotel Group 4 924 7 Mellow Mood Hotels 10 718 7 Continental Group 1 121
8 Hotel and More 11 739 8 Park Inn by Radisson 3 677
9 IHG 2 566 9 Ibis 5 584
1 Danubius 14 3,513 1 Mercure 3 1,078
10 Hilton 2 551 10 Hilton 2 551
2 Hunguest 11 1,777 2 Novotel 5 952
Domestic Chain Groups Hotels Rooms Domestic Chain Brands Hotels Rooms 3 Accent 12 836 3 Park Inn by Radisson 3 677
1 Danubius Hotels Group 21 5,142 1 Danubius 19 4,574 4 Hotel and More 8 509 4 Eurostars 2 276
2 Hunguest Hotels 20 3,374 2 Hunguest 20 3,374 5 Mellow Mood Hotels 5 392 5 Radisson Blu 1 247
3 Accent Hotel Management 20 1,412 3 Accent 19 1,326 6 Continental Group 4 330 6 Courtyard by Marriott 1 234
4 Mellow Mood Hotels 11 820 4 Hotel and More 11 739 7 Service4You 6 297 7 K+K 1 200
5 Hotel and More 11 739 5 Mellow Mood Hotels 10 718 8 Leonardo 1 182
6 Service4You 10 485 6 Service4You 10 485 9 Novum Hotels 1 179
7 Continental Group 5 451 10 Art’otel 1 165
1 AccorHotels 19 3,570 1 Mercure 3 1,078 1 Hilton 2 551

2 Marriott 7 1,275 2 Novotel 5 952 2 Corinthia 1 414
3 Radisson Hotel Group 4 924 3 Park Inn by Radisson 3 677 3 InterContinental 1 402
4 IHG 2 566 4 Ibis 5 584 4 Marriott 1 364
5 Hilton 2 551 5 Hilton 2 551 5 Sofitel 1 357
6 Corinthia Hotels 1 414 6 Ibis Styles 4 519 6 Kempinski 1 349
7 Kempinski 1 349 7 Corinthia 1 414 7 The Ritz Carlton 1 200
8 Dedica Anthology 2 320 8 InterContinental 1 402 8 Autograph Collection 1 185
9 Eurostars Hotels 2 276 9 Marriott 1 364 9 Four Seasons 1 179
10 Novum Hotels 2 216 10 Sofitel 1 357 10 Buddha-Bar 1 102
Hungary: Ranking per Scale & Size Hungary: Ranking by Destination
Hotels Rooms % Avg Size Hotels Rooms Hotels Rooms 1 Budapest 90 1 Budapest 13,790
Budget & Economy 3 212 1.0% 71 2 153 1 59 2 Siófok 5 2 Hévíz 946
Midscale 45 5,205 23.6% 116 32 3,860 13 1,345 3 Hévíz 5 3 Balatonfüred 738
Upscale & U.Upscale 96 13,409 60.9% 140 60 7,654 36 5,755 4 Szeged 4 4 Bükfürdő 551
Luxury 13 3,202 14.5% 246 0 0 13 3,202 5 Zalakaros 4 5 Zalakaros 470
TOTAL 157 22,028 100% 140 94 11,667 63 10,361 6 Hajdúszoboszló 4 6 Szeged 446
7 Balatonfüred 3 7 Hajdúszoboszló 434
8 Győr 3 8 Sárvár 372
Hungary: Business Model 9 Bükfürdő 3 9 Győr 354

10 Sárvár 2 10 Gyula 308
BY HOTELS
Franchise % Lease % Mgt Contr % Owned % Total %

Economy 1 33% 0 0% 2 67% 0 0% 3 100%
Hungary: Pipeline (2018/19) Hungary: Demand Driver
Midscale 3 7% 1 2% 13 29% 28 62% 45 100%
Rank Destination Hotel Rooms DRIVER DOMESTIC INTERNATIONAL
Luxury 2 15% 3 23% 6 46% 2 15% 13 100%
1 Budapest 41 6,154 Hotels Rooms Hotels Rooms
TOTAL 16 10% 18 11% 54 34% 69 44% 157 100%
2 Countryside 10 1,000
City Break 34 3,912 39 5,164
BY ROOMS
Corporate 1 103 11 1,759
Franchise % Lease % Mgt Contr % Owned % Total %
Health & Wellness 38 5,188 2 472
Economy 59 28% - 0% 153 72% - 0% 212 100%
Hungary: Ownership Lake (Balaton) 12 1,567 - -
Midscale 374 7% 37 1% 876 17% 3,918 75% 5,205 100%
MICE 2 180 8 2,711
Rank Owner Assets Rooms Outdoors 4 480 - -
Luxury 506 16% 509 16% 1,724 54% 463 14% 3,202 100%
1 CP Holding (Danubius) 21 5,142 Special Interest 3 237 3 255
TOTAL 2,713 12% 2,364 11% 5,188 24% 11,763 53% 22,028 100%
2 Hunguest 20 3,374
3 Orbis (Accor) 12 3,570
250
253
240
4 Mellow Mood 12 867
222 5 CPI Property Group 4 394

209
200
6 Proform 3 677
187
7 Zeina 3 431
159 8 Corinthia 2 724

150
150
143
9 Al Habtoor 2 602
131
120
10 Wing 2 231
100 107
97
89
80 73
70 70 68 69
66 63
60
50
50 50 51
43 44 45 43
39 41 28 25 23
19 19
26 26
22
13 13 7
16 19 22 21
7
21 19 7 4
16 3 4 6 12 5
10 10 12 13 2 11 1 2 2 2
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Ireland
Dublin shows no sign of slow down as new hotel

developments start construction and others are
close to completion. We anticipate 1,600 rooms
will be completed in the capital in 2019.

2018 was a record-breaking year with over 10.6m •
New brands
overseas trips to Ireland (+7% on 2017). Passenger A number of new brands have announced that they
numbers at Dublin Airport reached a record high of will enter the Dublin market in the next couple of
31.5m, a 6% increase. 2018 was the eighth year in a row years. These include Aloft and Moxy, both by Marriott.
that passenger numbers have grown at the airport. Other new entrants include Easy Hotel, Hampton by
Hilton, Hard Rock Hotel, Hyatt Centric, Marlin Hotel
The Dublin hotel market saw an increase of over 1,100 (part of the Marlin serviced apartment group) and
new bedrooms during 2018, a 5.7% increase in room Motel One.
capacity. This represents the largest annual increase in
supply in the Dublin market in over 10 years. There has •
Large hotel transactions
been a notable increase in foreign investment in the hotel Three large sales during the year were the sale of
sector due to the positive outlook. Development activity Tifco’s portfolio to Apollo Global Management,
Total chain hotels 183 185 1% for the sector is buoyant on the back of continued strong the sale of Hilton Garden Inn to Israeli backed
Total chain rooms 23,878 24,927 4% demand for hotel rooms and investor appetite. LRC group for an estimated €100m and the sale
Average size per chain hotel in rooms 130 135 4% of Citywest Hotel to Tetrarch for a reported €70m.
Dalata Hotel Group remain Ireland’s largest domestic
Country hotels stock (overall supply) 822 834 1%
group and brand. Dalata continued to invest, adding •
Galway trumps Cork on brand growth
670 rooms in Ireland in 2018 across three new hotels, Dublin continues to tower over all the other Irish
together with four extensions. Radisson remains the markets in terms of chain supply with 68 hotels
Chain penetration % by hotels 22% 22% 0% largest international brand with nine hotels (1,445 rooms). (13,123 rooms), an increase of 5% on last year.
Chain penetration % by rooms 41% 41% 1% Marriott International are growing their market share by From 2017 Galway beats Cork to second spot with
Total number of brands 31 28 -10% adding two new hotels in 2019 to add to their existing 16 hotels (1,706 rooms).
Domestic brands 8 7 -13% four properties.
185 International brands 23 21 -9%

The outlook for 2019 remains encouraging with positive
Chain Second-tier operated hotels 15 19 27%
Hotels domestic and international economic indicators. However,
International chain hotels* 41 42 2%
41% hoteliers remain wary of potential risks from Brexit and
Chain Room 22% Domestic chain hotels* 154 142 -8% any potential escalation in global trade wars.
penetration Chain Hotel International chain rooms* 6,149 6,148 0%
penetration
Naoise Cosgrove, Managing Director,
Domestic chain rooms* 20,349 18,634 -8%
Horwath HTL Ireland
Ireland: Ranking by Size Ireland: Ranking by Scale
1 Dalata Hotel Group 31 6,004 1 Clayton Hotels 13 3,491 1 Maldron Hotels 8 1,090 1 Travelodge 8 583
2 MHL Hotel Collection 11 1,840 2 Maldron Hotels 14 1,948 2 Jurys Inn 4 698 2 Holiday Inn Express 3 510
3 Tifco 17 1,807 3 Radisson 8 1,184 3 Treacys Hotel 3 330 3 Hilton Garden Inn 1 324
4 Great National Hotels 20 1,523 4 Jurys Inn 4 698 4 Great National Hotels 4 254 4 Premier Inn 1 213
5 Tetrarch 5 1,324 5 Travelodge 8 583 5 McGettigan Hotels 1 82 5 Ibis Hotel 1 150
6 Rezidor Hotel Group 9 1,298 6 Crowne Plaza 3 521 6 Park Inn 1 114
7 McGettigan Hotels 9 1,159 7 Holiday Inn Express 3 510 7 Quality Hotel 1 25
8 IHG 7 1,130 8 Hilton Hotels and Resorts 3 479
9 Hilton 5 816 9 Great National Hotels 7 422
1 Clayton Hotels 13 3,491 1 Radisson 7 1,033
10 Marriott International 4 799 10 Autograph Collection 2 394
2 Maldron Hotels 6 858 2 Crowne Plaza 3 521
Domestic Chain Groups Hotels Rooms Domestic Chain Brands Hotels Rooms 3 Talbot Collection 3 341 3 Hilton Hotels and Resorts 3 479
1 Dalata Hotel Group 31 6,004 1 Clayton Hotels 13 3,491 4 Great National Hotels 3 168 4 Riu 1 340
2 MHL Hotel Collection 11 1,840 2 Maldron Hotels 14 1,948 5 Treacys Hotel 1 50 5 Sheraton 1 167
3 Tifco 17 1,807 3 Jurys Inn 4 698 6 Ascend Hotel Collection 1 40
4 Great National Hotels 20 1,523 4 Great National Hotels 7 422
Rank Luxury Hotels Rooms Rank Luxury Hotels Rooms
5 Tetrarch 5 1,324 5 Treacys Hotel 4 380
1 Autograph Collection 2 394
6 McGettigan Hotels 9 1,159 6 Talbot Collection 3 341
2 Renaissance Hotels 1 266
7 Windward Management 7 749 7 McGettigan Hotels 1 82
3 InterContinental H&R 1 197
8 Inua Hospitality 7 743
4 Conrad Hotels and Resorts 1 192
9 Brian McEniff Hotels 6 626
5 Westin 1 172
10 The Doyle Collection 3 619
6 Radisson 1 151
International Chain Groups Hotels Rooms International Chain Brands Hotels Rooms 7 Solis Hotel 1 96
1 Rezidor Hotel Group 9 1,298 1 Radisson 8 1,184 8 Trump Hotels 1 81
2 IHG 7 1,130 2 Travelodge 8 583
3 Hilton 5 816 3 Crowne Plaza 3 521
4 Marriott International 4 799 4 Holiday Inn Express 3 510
5 Choice Hotel International 6 365 5 Hilton Hotels and Resorts 3 479
6 Riu 1 340 6 Autograph Collection 2 394
7 Liebherr Group 2 289 7 Riu 1 340
8 Seraphine Hotels 2 279 8 Hilton Garden Inn 1 324
9 Best Western 1 270 9 Renaissance Hotels 1 266
10 Premier Inn 1 213 10 Premier Inn 1 213
Ireland: Ranking per Scale & Size Ireland: Ranking by Destination Ireland: Hotel Investors 2018
CHAINS OVERALL DOMESTIC INTERNATIONAL Rank Destination By Hotels Rank Name Volume in €m
Hotels Rooms % Avg Size Hotels Rooms Hotels Rooms 1 Co Dublin 68 1 Apollo Global RE 289.0
2 Co Cork 16 2 LRC Europe 104.4
Budget & Economy 1 150 1% 150 1 150
3 Co Galway 16 3 Tetrarch Capital 75.0
Midscale 36 4,323 41% 120 20 2,454 16 1,869
4 Brookfield AM 56.3
Upscale & U.Upscale 42 7,488 48% 178 26 4,908 16 2,580 4 Co Limerick 10
5 Aviva 17.5
Luxury 9 1,549 10% 172 9 1,549 5 Co Kerry 9
TOTAL 88 13,510 100% 154 46 7,362 42 6,148 6 Co Wexford 6
7 Co Kilkenny 3
8 Co Kildare 3
250
Rank Destination By Rooms Ireland: Institutional Owners 2018
253
240 1 Co Dublin 13,123
222 2 Co Galway 1,706
200 209 1 Apollo Global RE 2,057
3 Co Cork 1,614
187 2 TVC Holdings 1,020
4 Co Limerick 1,214
3 DekaBank 753
150
159 5 Co Kerry 901
150 4 ADIA 418
143
6 Co Wexford 583 5 Kennedy Wilson 414
131
120 7 Co Kildare 414 Source: Real Capital Analytics, Inc. 2019

100 107
97 8 Co Kilkenny 158
89
80 73
70 70 68 69
66 63
60
50
50 50 51
43 44 45 43
39 41 28 25 23
19 19
26 26
22
13 13 7
16 19 22 21
7
21 19 7 4
16 3 4 6 12 5
10 10 12 13 2 11 1 2 2 2
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Italy
Hospitality in Italy is consolidating its ownership

and corporate structure. Its competitive backbone
is no longer family-run hotels: core assets are in
the hands of hundreds of operators and owners.

2018 was a year of confirmation and consolidation. •
2018 chain rooms penetration rose to 15.8%
Hotels demand grew +2.3%, thanks to international flows. In 2018 the total penetration rate of chain rooms
The hotel industry continued to consolidate in operating got closer to 16%. This figure reached 50% in the
chains (16% of rooms) and owning structure, due to Upper Upscale & Luxury segment and 33% in the
the expansion of domestic operators and the unrest in Upscale segment. The presence of chains in the
investment funds’ interest. Overall, the last 3 years have Economy tier is yet very limited.
been very vibrant, with several M&A deals.
•
5% of chain hotels under management contracts
During 2018, a sustained period of consolidation saw Management contracts in the Country remain rare.
many domestic operators go beyond the threshold of They were 5% of the overall distribution of business
4 hotels needed to be considered a chain, meaning the models in 2018. Franchising is set at 20%. Lease and
total number of brands and operators reached 240, up management under direct ownership together total
Total chain hotels 1,488 1,584 6.5% from 227 last year. The countries of origin for brands 74% of chain hotels.
Total chain rooms 164,196 171,845 4.7% are very diverse: not only Italy (143 brands), USA (36),
Average size per chain hotel in rooms 110.3 108.5 -1.7% France (13) and Spain (13), UK (12), but also Germany •
15,700 chain rooms expected for 2019-202
(7), Austria (4), Belgium (2), Israel (2), Taiwan (1) and The current amount of pipeline rooms we have
many other countries. In expanding their global footprint, recorded in our last census for the coming years
Country rooms Stock (overall supply) 1,091,061 1,086,910 -0.4%
international chains have succeeded in having at least one (2019-2022) is 15,650 belonging to 118 new hotels,
Average size per hotel in rooms 32.9 32.9 0.2%
property in Italy, which has the highest number of hotels the majority of which in the Midscale and Upscale
Chain penetration % by hotels 4.5% 4.8% 7.0% and rooms in Europe (Eurostat). segments, 60% of which branded by international
Chain penetration % by rooms 15.0% 15.8% 5.1% operators.
Total number of brands 227 240 5.7% Looking ahead, while the number of hotels will diminish
Domestic brands 137 143 4.4% (as recorded over the last 10 years) due to the ‘retirement’
of properties which are not appealing for independent
1,584 International brands 90 97 7.8%
operations, nor affiliated, chains will continue to
Hotels consolidate and get closer to one fifth of the overall
16% room inventory.
Chain Room 5% Domestic chain hotels* 1,034 1,102 6.6%
penetration Zoran Bačić, Senior Partner & Managing Director
Domestic chain rooms* 107,881 113,848 5.5% Horwath HTL Italy
Italy: Ranking by Size Italy: Ranking by Scale
1 Best Western H&R 154 11,676 1 Best Western 101 7,423 1 TH Resorts 7 1,600 1 B&B Hotels 33 3,193
2 AccorHotels 84 10,529 2 NH Hotels 38 5,877 2 Geturhotels 7 1,330 2 Ibis 9 1,625
3 Marriott International 62 10,093 3 TH Resorts 22 4,645 3 Chincherini Holiday Group 10 1,170 3 Best Western 25 1,491
4 NH Hotels 51 7,825 4 Bluserena 11 3,920 4 Aeroviaggi 2 772 4 Club Med 3 1,450
5 Gruppo Una 39 5,034 5 Mercure 34 3,702 5 Bianchi Hotels 10 641 5 Ibis Styles 11 949
6 IHG 30 4,678 6 Unahotels 23 3,607 6 Apogia Hotels Group 12 618 6 Holiday Inn Express 6 664
7 TH Resorts 22 4,645 7 Blu Hotels 30 3,372 7 Aurum Hotels 3 599 7 Tulip Inn 4 445
8 Hilton 22 4,606 8 B&B Hotels 34 3,270 8 Piazza Hotels & Residences 19 568 8 The Student Hotel 1 390
9 ITI Hotels 39 4,604 9 Aeroviaggi 14 3,183 9 Azzurro Club Vacanze 10 516 9 Moxy 2 362
10 Bluserena 11 3,920 10 Iti Hotels-Marina H&R 24 2,870 10 Club Esse 5 499 10 Meininger 3 329
1 Gruppo UNA 39 5,034 1 TH Resorts 22 4,645 1 Bluserena 9 3,686 1 Best Western 76 5,932
2 TH Resorts 22 4,645 2 Bluserena 11 3,920 2 Una Hotels 23 3,607 2 NH Hotels 38 5,877
3 ITI Hotels 39 4,604 3 Unahotels 23 3,607 3 Blu Hotels 25 3,136 3 Mercure 32 3,492
4 Bluserena 11 3,920 4 Blu Hotels 30 3,372 4 TH Resorts 15 3,045 4 Best Western Plus 26 2,487
5 Starhotels 24 3,669 5 Aeroviaggi 14 3,183 5 Starhotels Premium 17 2,772 5 Holiday Inn 14 2,313
6 Blu Hotels 30 3,372 6 Iti Hotels-Marina H&R 24 2,870 6 IH Hotels 26 2,749 6 Novotel 13 2,200
7 Aeroviaggi 14 3,183 7 IH Hotels 27 2,864 7 Voi Hotels 8 2,568 7 Sheraton 5 2,131
8 IH Hotels 28 2,927 8 Starhotels Premium 17 2,772 8 ITI Hotels-Marina H&R 20 2,553 8 Hilton 5 1,560
9 Alpitour 10 2,739 9 Voi Hotels 10 2,739 9 Aeroviaggi 12 2,411 9 Crowne Plaza 7 1,476
10 JSH Hotels & Resorts 13 2,671 10 Jsh 13 2,671 10 JSH 11 2,266 10 AC Hotels Marriott 11 1,235
1 Best Western H&R 154 11,676 1 Best Western 101 7,423 1 GB Thermae Hotels 3 542 1 Luxury Collection 8 940
2 AccorHotels 84 10,529 2 NH Hotels 38 5,877 2 Delphina 3 541 2 Westin 3 714
3 Marriott International 61 10,035 3 Mercure 34 3,702 3 ITI Hotels- Colonna Luxury 3 477 3 Autograph Marriott 5 636
4 NH Hotels 51 7,825 4 B&B Hotels 34 3,270 4 The Dedica Anthology 3 458 4 NH Collection 4 567
5 IHG 30 4,678 5 Best Western Plus 29 2,622 5 Select 3 451 5 Belmond 7 453
6 Hilton 22 4,606 6 Holiday Inn 14 2,313 6 JSH 2 405 6 Melia' 4 449
7 B&B Hotels 34 3,270 7 Sheraton 6 2,211 7 Baglioni Hotels 6 398 7 Mgallery By Sofitel 4 418
8 Club Med 5 2,016 8 Novotel 13 2,200 8 Giorgio Mazzella Group 2 397 8 Rocco Forte 3 405
9 Louvre Hotels Group 7 1,139 9 Club Med 5 2,016 9 Sina 5 391 9 Dorchester Collection 2 399
10 Grupo Hotusa 11 1,103 10 Hilton 6 1,939 10 Allegroitalia 5 389 10 Hilton 1 379
Italy: Ranking per Scale & Size Italy: Ranking by destination
Hotels Rooms % Avg Size Hotels Rooms Hotels Rooms 1 Rome 181 1 Rome 20,782
Budget & Economy 24 1,802 1.0% 75 17 660 7 1,142 2 Milan 116 2 Milan 15,061
Midscale 356 27,842 16.2% 78 249 17,050 107 10,792 3 Venice 61 3 Venice 5,955
Upscale & U.Upscale 1,029 124,317 72.3% 121 721 85,426 308 38,891 4 Florence 59 4 Florence 4,967
Luxury 175 17,884 10.4% 102 108 9,852 67 8,032 5 Rimini 36 5 Bologna 3,441
TOTAL 1,584 171,845 100% 108 1,095 112,988 489 58,857 6 Cervia 31 6 Turin 2,575
7 Bologna 25 7 Naples 2,361
8 Turin 23 8 Genoa 2,314
Italy: Business Model
9 Jesolo 21 9 Cervia 2,228
10 Genoa 20 10 Budoni 2,154
BY HOTELS

Economy - - 9 38% 1 4% 14 58% 24 100%
Midscale 62 17% 145 40% 12 3% 144 40% 363 100% Italy: Pipeline (2018/19) Italy: Demand Driver
Upscale & U.Upscale 253 23% 398 37% 41 4% 393 36% 1,085 100%
Luxury 19 10% 52 28% 31 16% 86 46% 188 100% Rank Destination Hotel Rooms DRIVER DOMESTIC INTERNATIONAL
TOTAL 334 20% 604 36% 85 5% 637 38% 1,660 100% 1 Rome 18 2,588 Hotels Rooms Hotels Rooms
BY ROOMS 2 Milan 13 1,936
Art & Business 245 23,078 184 22,728
3 Venice 12 1,824
Franchise % Lease % Mgt Cont % Owned % Total % Airport 10 1,727 22 3,764
4 Florence 5 953
Economy - - 468 26% 50 3% 1,284 71% 1,802 100% Business Focus 147 15,313 161 18,136
5 Pizzo 1 618
Midscale 4,577 16% 13,366 47% 1,770 6% 8,776 31% 28,489 100%
6 Bologna 2 561 Golf 14 2,230 3 596
Upscale & U.Upscale 28,802 22% 48,584 37% 7,258 5% 48,274 36% 132,918 100% 7 Fiumicino 2 439 Other Leisure 172 13,489 73 7,521
Luxury 1,808 9% 5,343 27% 4,430 23% 8,019 41% 19,600 100%
8 Acireale 1 374 Ski 83 6,585 16 1,234
TOTAL 35,187 19% 67,761 37% 13,508 7% 66,353 36% 182,809 100% 9 Badesi 1 350 Sun & Beach 400 48,042 28 4,760
10 Carlentini 1 225 Thermal 24 2,524 2 118
250
253
240
222
200 209 Italy: Hotel Investors 2018 Italy: Institutional Owners

187

159
150
150 1 CDL 40.6 1 CDP Cassa Depositi 1,808
143
131 2 Boissee Finances 36.0 2 QIA 1,597
120
107
3 Swiss Life AM 34.0 3 BNP Paribas 958
100
97
89
4 Finint 32.9 4 Finint 797
80 73
70 70
5 Rocco Forte Hotels 25.3 5 Varde Partners 698
66 68 69
63
60
50
51
50 50
43 44 45 43
39 41 28 25 23
19 19
26 26
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13 13 7
16 19 22 21
7
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10 10 12 13 2 11 1 2 2 2
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Montenegro
The market in Montenegro is fast-growing,

driven largely by high quality coastal resorts built
by foreign investors, supported by favourable
investment conditions.

The hotel market in Montenegro is a fast growing •
Hotel supply driven by foreign investments
market driven largely by high quality resorts built by Due to a favourable investment environment,
foreign investors on the coast, such as Lustica Bay, Porto Government incentives and still underdeveloped
Montenegro and Portonovi. Currently there are only two coastal area, Montenegro is a very attractive country
domestic chains. Budvanska Rivijera with 1,751 rooms for mixed-use tourism projects with internationally
across 7 hotels is the dominant market player with a branded hotels.
share of 42%, while Casa Del Mare owns/manages 5
small hotels. •
High interest from international brands
With 14 international brands present in the market
Conditions for investment are very favourable for hotel in the Upper Upscale and Luxury segment there is
construction since the Montenegro Government has clear indication that the market is of interest to global
Key Statistics 2018
ensured significant investing benefits and tax reliefs players, primarily for stand-alone high-end resorts.
Total chain hotels 25 on national and local level, such as general corporate
Total chain rooms 4,113 profit tax and personal income tax as low as 9%. This has •
Privatisation may add more international brands
Average size per chain hotel in rooms 165 attracted 11 international hotel chains and brands, which The Government of Montenegro is going through a
share 57% in total hotels chain supply, particularly in the privatisation process for several state-owned entities,
luxury segment (primarily through luxury mixed-use mega which may entice new international brands into the
resorts) with brands such as Aman, Hilton, Regent, Melia, market and further enhance the overall maturity of the
Chedi and Iberostar. tourism offering.
Chain penetration % by rooms 24.81% 2018 was a good year with a significant increase in •
Citizenship program to boost investments
Total number of brands 13 average RevPar (27%) but Montenegro is still developing The Government of Montenegro has introduced an
Domestic brands 2 as a tourist destination. The expectation is that it will economic citizenship program which allows foreigners
25
remain in the upward trend as more chains enter the to be granted the citizenship of Montenegro at the
Chain
market with the high-end resorts likely to improve discretion of the Ministry of Interior Affairs and Public
Hotels
Hotels performance and have an impact on the surrounding Administration through a designated investment. This
25%
25%
destinations. program is expected to further attract investors within
Chain
Chain Room
Room 8%
8% International chain rooms* 2,366 the already favourable investment environment.
penetration
penetration Chain
Chain Hotel
Hotel
Domestic chain rooms* 1,805
penetration Rubinka Vlahov Petrović, Senior Partner
penetration
* Includes double counting Horwath HTL Croatia
Note: Montenegro is a new market to report - only 2018 data available
Montenegro: Ranking by Size Montenegro: Ranking by Scale
1 Budvanska Rivijera 7 1,751 1 Budvanska Rivijera 5 1,693 1 Budvanska Rivijera 3 1,337

2 Casa del Mare 5 54 2 Casa del Mare 5 54
3 Iberostar Hotels & Resorts 3 821 3 Iberostar 3 821
1 Casa del Mare 5 54 1 Iberostar 2 756
4 Karisma Hotels Adriatic 2 482 4 Karisma 2 482
2 Budvanska Rivijera 2 356 2 Karisma 2 482
5 Aman Resorts 2 58 5 Aman 2 58
3 Falkensteiner 1 236
6 Falkensteiner 1 236 6 Falkensteiner 1 236
4 Ramada 1 110
7 Hilton Worldwide 1 180 7 Hilton 1 180
5 Four Points by Sheraton 1 72
8 IHG 1 149 8 Regent 1 134
9 Melia Hotels & Resorts 1 114 9 Melia 1 114 Rank Luxury Hotels Rooms Rank Luxury Hotels Rooms
10 Orascom Hotels 1 111 10 Chedi 1 111 1 Aman 2 58

2 Hilton 1 180
3 Regent 1 149
1 Budvanska Rivijera 7 1,751 1 Budvanska Rivijera 5 1,693
4 Melia 1 114
2 Casa del Mare 5 54 2 Casa del Mare 5 54
5 Chedi 1 111
International Chain Groups Hotels Rooms International Chain Brands Hotels Rooms 6 Iberostar 1 65
1 Iberostar Hotels & Resorts 3 821 1 Iberostar 3 821
2 Karisma Hotels Adriatic 2 482 2 Karisma 2 482
3 Aman Resorts 2 58 3 Aman 2 58
4 Falkensteiner 1 236 4 Falkensteiner 1 236
5 Hilton Worldwide 1 180 5 Hilton 1 180
Montenegro: Ranking per scale & size
6 IHG 1 149 6 Regent 1 134
7 Melia Hotels & Resorts 1 114 7 Melia 1 114 CHAINS OVERALL DOMESTIC INTERNATIONAL
8 Orascom Hotels 1 111 8 Chedi 1 111
Hotels Rooms Hotels Rooms Hotels Rooms
9 Wyndham 1 110 9 Ramada 1 110
Midscale 3 1,337 3 1,337 - -
10 Marriott International 1 72 10 Four Points by Sheraton 1 72
Upscale & U.Upscale 14 2,066 7 410 7 1,656
Luxury 7 662 - - 7 662
TOTAL 24 4,065 10 1,747 14 2,318
Montenegro: Business Model Montenegro: Ranking by Destination
BY HOTELS Rank Destination By Hotels Rank Destination By Rooms
Franchising % Mgt Contract % Owned % Total % 1 Budva 5 1 Budva 1,395
Midscale - - - - 3 33% 3 12% 2 Herceg Novi 3 2 Bečići 802

Upscale & U.Upscale 3 75% 6 50% 6 67% 15 60% 3 Podgorica 3 3 Petrovac 356
Luxury 1 25% 6 50% - - 7 28% 4 Kotor 3 4 Ulcinj 353
TOTAL 4 16% 12 48% 9 36% 25 100% 5 Bečići 2 5 Podgorica 338
BY ROOMS 6 Tivat 2 6 Tivat 245
Franchising % Mgt Contract % Owned % Total % 7 Petrovac 2 7 Njivice, Igalo 190

8 Ulcinj 1 8 Dobra Voda 129
Midscale - - - - 1,337 55% 1,337 33%
Upscale & U.Upscale 230 56% 793 62% 1,091 45% 2,114 51% 9 Njivice, Igalo 1 9 Petrovac na Moru 114
Luxury 180 44% 482 38% 662 16% 10 Dobra Voda 1 10 Kotor 83
TOTAL 410 10% 1,275 31% 2,428 59% 4,113 100%
Montenegro: Pipeline (2018/19) Montenegro: Demand Driver
250
253
Rank Destination Hotels Rooms DRIVER DOMESTIC INTERNATIONAL
240
1 Budva 5 1.395 Hotels Rooms Hotels Rooms
222
209
2 Bečići 3 1.038 Art & Business - - 3 338
200
187
3 Petrovac 3 470 Ski - - 1 72
4 Ulcinj 1 353 Sun & Beach 10 1,747 11 1,956
159
150
150 5 Podgorica 3 338
143
131 6 Tivat 6 2,334
120
100 107 7 Njivice, Igalo 1 190
97
89 8 Dobra Voda 1 129
80 73
66
70 70 68
63
69 9 Kotor 3 83
60
50
51
50 50
43 44 45 43
10 Kolašin 1 72
39 41 28 25 23
19 19
26 26
22
13 13 7
16 19 22 21
7
21 19 7 4
16 3 4 6 12 5
10 10 12 13 2 11 1 2 2 2
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Netherlands
The largest hotel chain in The Netherlands in

number of rooms remains Van der Valk, with
70 hotels and almost 10,000 hotel rooms.
The largest international chain is Accor Hotels.

The Dutch hotel industry is flourishing, having reached •
Chain Hotels
record occupancies, room rates and revenues and projecting 23 chain hotels were added in the Netherlands, with a
further growth for the near future. Increased supply total of 3,666 rooms. The most active chain is Fletcher
and demand in Amsterdam has led to a strong sense of Hotels, which added 8 hotels to its brand. The largest
‘overtourism’ among the local population and politicians.
single addition was the opening of the 476 room Park
As a result, a near total ‘hotel stop’ has been implemented.
Inn by Radisson in Amsterdam.
However, it may be some years before the effects are
visible, as there are still dozens of locations where hotel
•
Domestic brands
developments are approved. Meanwhile, the cities are
Newly active brands in the Netherlands include
experiencing increased attention from developers/investors,
and are expected to maintain a strong growth rate in both Cityden Up, a spin-off of the domestic short stay brand
supply and demand. Cityden.
Total chain hotels 640 663 3.6% •

International brands
The Netherlands currently has a total of over 3,500 hotels,
Total chain rooms 72,467 76,133 5.1% offering almost 130,000 rooms. While 19% is chain affiliated, The Irish Prem Group brought its serviced apartments
Average size per chain hotel in rooms 113.2 114.8 1.4% almost 60% of all rooms belong to a chain. Chain penetration brand to the Netherlands with Premier Suites Plus in
is high in Upscale, Upper Upscale and Luxury hotels, but Rotterdam. IHG introduced the trendy, super-green
less so in Midscale and Budget & Economy hotels. Chain QO Hotel in Amsterdam. International hostel brands
Country rooms Stock (overall supply) 124,565 129,479 3.9% penetration is highest in/around Amsterdam Schiphol Generator and Via opened their first hotels in The
Average size per hotel in rooms 36.3 37.0 1.9% Airport, and in cities such as Eindhoven, The Hague and
Netherlands, as did Indigo and Pestana.
Chain penetration % by hotels 18.6% 18.9% 1.6% Rotterdam. More rural tourist destinations such as Noordwijk
and Valkenburg offer a large number of hotels, but few are
Chain penetration % by rooms 58.2% 58.8% 1.1%
chain-affiliated.
Total number of brands 99 107 8.1%
Domestic brands 38 39 2.6% The largest hotel chain remains Van der Valk, with 70 hotels
663 International brands 61 68 11.5% and almost 10,000 hotel rooms. The largest international
Chain Second-tier operated hotels 44 46 4.5% chain is Accor Hotels, with 46 hotels and 8,000 hotel rooms.
Hotels The fast-growing domestic chain, Fletcher Hotels has now
59% surpassed Van der Valk in number of hotels, reaching 87.
Chain Room 19% Domestic chain hotels* 436 447 2.5% However, as most Fletcher Hotels are relatively small, with a
penetration Chain Hotel International chain rooms 37,298 40,188 7.7%
penetration total of 5,000 rooms it is only the fourth chain in number of
Domestic chain rooms* 40,825 42,123 3.2% hotel rooms.
Ewout Hoogendoorn, Managing Director
Horwath HTL Netherlands
Netherlands: Ranking by Size Netherlands: Ranking by Scale
1 Van der Valk 70 9,880 1 Van der Valk 70 9,880 1 Fletcher 87 5,004 1 Best Western 28 2,242
2 AccorHotels 46 7,977 2 NH 31 5,615 2 Bastion 31 3,119 2 Ibis 11 2,182
3 NH Hotels 36 6,874 3 Fletcher 87 5,004 3 The Student Hotel 7 1,766 3 Mercure 10 1,521
4 Fletcher 87 5,004 4 Bastion 31 3,119 4 XO 7 1,018 4 Holiday Inn Express 8 1,351
5 InterContinental Hotel Group 20 3,610 5 Best Western 28 2,242 5 Tulip Inn 11 955 5 Campanile 14 913
6 Louvre 45 3,545 6 Ibis 11 2,182 6 Stayokay 20 814 6 Ibis budget 5 739
7 Bastion Hotel Group 32 3,312 7 Novotel 9 1,874 7 Postillion 6 515 7 Ramada 3 731
8 Marriott International 13 2,843 8 The Student Hotel 7 1,766 8 Teleport 2 210 8 Park Inn by Radisson 2 626
9 Hilton 12 2,690 9 Bilderberg 17 1,696 9 Hotel V 3 182 9 easyHotel 6 611
10 Radisson Hotel Group 11 2,394 10 Golden Tulip 19 1,610 10 CityHub 2 176 10 Hampton by Hilton 3 517
1 Van der Valk 70 9,880 1 Van der Valk 70 9,880 1 Van der Valk 70 9,880 1 NH 31 5,615
2 Fletcher 87 5,004 2 Fletcher 86 4,937 2 Bilderberg 17 1,696 2 Novotel 9 1,874
3 Bastion 32 3,312 3 Bastion 31 3,119 3 Golden Tulip 19 1,610 3 Hilton 5 1,266
4 Apollo 14 1,995 4 The Student Hotel 7 1,766 4 WestCord 14 1,497 4 Park Plaza 5 1,010
5 TVHG 11 1,913 5 Bilderberg 17 1,696 5 Eden 11 1,429 5 NH Collection 4 981
6 Eden Hotels 14 1,798 6 Golden Tulip 19 1,610 6 Apollo 11 1,315 6 Marriott 3 947
7 The Student Hotel 7 1,766 7 WestCord 14 1,497 7 Amrâth 11 1,161 7 Carlton Hotel Collection 6 835
8 WestCord Hotels 15 1,754 8 Eden 11 1,429 8 Inntel 4 886 8 Holiday Inn 4 781
9 Bilderberg 17 1,696 9 Apollo 11 1,315 9 Hampshire 15 873 9 Crowne Plaza 4 764
10 Amrâth Hôtels 14 1,323 10 Amrâth 11 1,161 10 CitizenM 3 596 10 Radisson Blu 3 651
1 AccorHotels 46 7,977 1 NH 31 5,615 1 W 2 238

2 NH Hotels 36 6,874 2 Best Western 28 2,242 2 Sofitel 1 182
3 IHG 20 3,610 3 Ibis 11 2,182 3 Andaz 1 122
4 Louvre 45 3,545 4 Novotel 9 1,874 4 Waldorf Astoria 1 93
5 Marriott International 13 2,843 5 Mercure 10 1,521 5 Luxury Collection 1 92
6 Hilton 12 2,690 6 Holiday Inn Express 8 1,351 6 InterContinental 1 79
7 Radisson Hotel Group 11 2,394 7 Hilton 5 1,266 7 Warwick 1 25
8 Best Western Hotels 28 2,242 8 Park Plaza 5 1,010
9 PPHE Hotels Group 6 1,117 9 NH Collection 4 981
10 Carlton Hotel Collection 7 886 10 Marriott 3 947
Netherlands: Total Brands Netherlands: Ranking by Destination Netherlands: Hotel Investors 2018
250
253
Rank Destination By Hotels Rank Name Volume in €m
240
1 Amsterdam 447 1 DekaBank 197.7
222
209
2 Valkenburg 72 2 Global Holdings 163.7
200
187
3 The Hague 72 3 InterGlobe Enterprises 113.3
4 Rotterdam 69 4 Invesco 110.0
159
150
150 5 Maastricht 59 5 CBRE Global Investors 110.0
143
131 6 Zandvoort 35 Source: Real Capital Analytics, Inc. 2019
120
100 107 7 Utrecht 34
97
8 Noordwijk 32
Netherlands: Institutional Owners
89
80 73
66
70 70 68
63
69 9 Groningen 28
60
50
51
50 50
43 44 45 43
10 Eindhoven 27 Rank Name No. of Keys
39 41 28 25 23
19 19
26 26 13 13 7
16 16 19 22 21
7
21
3
22
4
19 7 6 12 5
4 Rank Destination By Rooms 1 DekaBank 1,485
10 10 12 13 2 11 1 2 2 2
0
1 Amsterdam 32,266 2 AXA Group 1,376
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3 Invesco 1,048
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3 The Hague 4,816 4 Bouwinvest 943
4 Hoofddorp 2,709 5 Union Investment 779
5 Maastricht 2,641 Source: Real Capital Analytics, Inc. 2019
6 Eindhoven 2,272
7 Utrecht 1,945
8 Valkenburg 1,747
9 Schiphol 1,711
10 Noordwijk 1,419
Norway
The market is mature and very brand heavy, in

fact well over half of the rooms in Norway are
attached to a brand. Many of them to local hero,
Nordic Choice hotels.

This is the first time that Norway has featured in the •
Choice, but not as you know it
report. The Norway market is a very solid hotel market Nordic Choice is a master franchise with a classic
with 299 chain hotels, placing then 10th out of the 22 stable brand which was reinvented for a new market.
markets covered. Even though the number of brands It is also a good, rare example of an imitation, being
they have is small compared to the rest of Europe, only better than the original. They now have 93 hotels
19 well below the report average of 81, the brands they and counting in Norway alone.
do operate a lot of hotels and the penetration of chain
hotels and rooms is relatively high, with branded hotels •
Transactions few and far between
making up 27% of hotel stock and bedrooms over 55%. The transaction market in Norway was subdued in
This is reflected in the average size of the hotels, with 2018, with the top five deals netting a relatively
chain affiliated hotels having an average of 165 rooms as small 55.4 million Euros.
Key Statistics 2018
opposed to the average market size of 80.
Total chain hotels 223
Total chain rooms 39,596 The market is dominated by three players, two local and
Average size per chain hotel in rooms 178 one Swedish. Nordic Choice hotels, a master franchise
owner of the Choice brands are the biggest, with 4
Country hotels stock (overall supply) 1,100
brands, 93 hotels and 15,908 rooms. Scandic is next with
85 hotels and 15,702 rooms and third is the Thon Hotels
group who have 74 hotels and 9,969 rooms.
Chain penetration % by rooms 44.9% The market is very focused on the midscale and upscale
Total number of brands 16 markets, with 53% and 45% respectively. Nordic Choice is
Domestic brands 3 slightly disadvantaged here as their hotels share the same
STR ratings as Choice worldwide, even though the overall
quality is higher.
Hotels
45%
James Chappell, Global Business Director
Chain Room 20% International chain rooms* 32,796 Horwath HTL Global
penetration
Note: Norway is a new market to report - only 2018 data available
Norway: Ranking by Size Norway: Ranking by Scale Norway: Hotel Investors 2018
CHAINS BRANDS DOMESTIC BRANDS Rank Name Volume in €m
Rank Chain Groups Hotels Rooms Rank Chain Brands Hotels Rooms Rank Economy & Midscale Hotels Rooms 1 Christiansholm Eiendom 18.4
2 Ragde Eiendom AS 11.2
1 Choice Hotels International 93 15,908 1 Scandic 46 9,311 1 Norlandia 1 72
3 Breidablikk Eiendom 11.2
2 Scandic 46 9,311 2 Thon 37 6,157
Rank Upscale & Upper Upscale Hotels Rooms 4 Eiendomsspar AS 8.1
3 Olav Thon Grp 37 6,157 3 Quality Hotel 34 6,376
1 Thon 37 6,157 5 Strawberry Fields 6.4
4 Radisson 23 6,190 4 Clarion Collection 21 2,707 Source: Real Capital Analytics, Inc. 2019
2 First 6 571
5 Best Western 15 1,061 5 Radisson Blu 19 5,424
6 First 6 571 6 Comfort 18 2,986
INTERNATIONAL BRANDS
Norway: Institutional Owners 2018
7 Marriott 1 276 7 Ascend 10 2,067
Rank Economy & Midscale Hotels Rooms
8 Norlandia 1 72 8 Clarion 10 1,772 Rank Name No. of Keys
1 Quality Hotel 34 6,376 1 Midstar AB 1,073
9 Hotel Guldsmeden 1 50 9 Best Western 7 426
2 Comfort 18 2,986 2 KLP Forsikring 757
3 Clarion 10 1,772 3 Ragde Eiendom AS 612
1 Olav Thon Grp 37 6,157 1 Thon 37 6,157 4 Best Western 7 426 4 Storebrand 334
2 First 6 571 2 First 6 571 5 Best Western Plus 5 483 5 Pareto 301
3 Norlandia 1 72 3 Norlandia 1 72 6 Park Inn by Radisson 4 766
International Chain Groups Hotels Rooms International Chain Brands Hotels Rooms 7 Surestay by Best Western 3 152
Norway: Ranking by Destination
1 Choice Hotels International 93 15,908 1 Scandic 46 9,311 8 Moxy 1 276
2 Scandic 46 9,311 2 Quality Hotel 34 6,376 Rank Upscale & Upper Upscale Hotels Rooms Rank Destination Hotels Rooms
3 Radisson 23 6,190 3 Clarion Collection 21 2,707 1 Scandic 46 9,311 1 Oslo 58 11,946
4 Best Western 15 1,061 4 Radisson Blu 19 5,424 2 Clarion Collection 21 2,707 2 Bergen 22 4,427
5 Marriott 1 276 5 Comfort 18 2,986 3 Radisson Blu 19 5,424 3 Trondheim 17 3,032
6 Hotel Guldsmeden 1 50 6 Ascend 10 2,067 4 Ascend 10 2,067 4 Stavanger 15 2,873
7 Clarion 10 1,772 5 Hotel Guldsmeden 1 50 5 Tromso 10 1,680
8 Best Western 7 426
9 Best Western Plus 5 483
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10 Park Inn by Radisson 4 766
240
222
200 209
Norway: Ranking per scale & Size 187
CHAINS OVERALL DOMESTIC INTERNATIONAL 150

159
150
143
Hotels Rooms % Avg Size Hotels Rooms Hotels Rooms 131
120
Budget & Economy 3 152 1% 51 - - 3 152 100 107
97
Midscale 81 13,157 36% 162 1 72 80 13,085 89
80 73
Upscale & U.Upscale 139 26,287 62% 189 43 6,728 96 19,559 66
70 70 68
63
69
60
50
51
TOTAL 223 39,596 100% 178 44 6,800 179 32,796 50 50
43 44 45 43
39 41 28 25 23
19 19
26 26
22
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16 19 22 21
7
21 19 7 4
16 3 4 6 12 5
10 10 12 13 2 11 1 2 2 2
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With thanks to Benchmarking Alliance for their support with Norwegian data.
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Poland
The hotel boom in Poland is continuing and

investors are increasingly interested in opening
hotels as asset diversification.

The Polish hotel market has been in the midst of rapid •
Chain hotels are entering resort destinations
growth for several years. Increasing ADR and Occupancy International hotel chains are more interested in
of hotels in major Polish cities were encouraging investors opening hotels in resort destinations. Radisson will
to open new hotels. As a result new hotel brands and open a new Radisson Blu in mountainous Zakopane
new hotel chains are entering the market with incredible (2019), Hilton will open a new hotel in coastal
speed. Świnoujście (2020) and Accor is building MGallery in
coastal Jurata.
Based on initial announcements, by 2021 over 21
new hotels will be open in Warsaw, creating a new supply •
Increasing popularity of lease agreement
of 4,400 hotel rooms (30% of current room supply). Investors are more interested in opening new hotels
There is a similar situation in Tricity (Gdansk, Gdynia and under lease agreements with the fix or mix rent model.
Sopot) where within the next 3 years, 9 new hotels will
Total chain hotels 342 366 7% be open, creating a new supply of over 1,900 new hotel •
New brands entering market
Total chain rooms 47,484 50,484 6% rooms which is also an increase of 30% of current supply. 2019 will be a year of new hotel brands entering the
Average size per chain hotel in rooms 139 138 -1% Polish market. Moxy Hotel has already opened at
The largest hotel chain, is still Accor with 75 hotels, Katowice Airport and in Warsaw. In 2019 the brands
Country hotels stock (overall supply)** 2,540 2,592 2%
followed by Best Western and LHG with 20 hotels each. Four Points by Sheraton and Motel One will follow. By
Country rooms stock (overall supply)** 130,081 136,080 5%
Accor has 12,584 rooms, followed by Hilton Worldwide 2021 the Polish hotel market will welcome the brands
(3,330 rooms) and Marriott International (3,330 rooms). Staybridge, Residence Inn, NYX, Crowne Plaza, and
Chain penetration % by hotels 13.5% 14.1% 5% MGallery.
Chain penetration % by rooms 36.5% 37.1% 2% Chopin Airport Development, a state-owned management
Total number of brands 61 69 company with 8 hotels under international brands,
Domestic brands 26 26 - became Polish Hotel Holding (PHH), which took
over chains AMW, GAT and WPUT. PHH’s goal is to
366 International brands 35 43
consolidate state-owned hotel chains and adjust them to
Chain International chain hotels* 173 198
Hotels modern standards of hospitality. Horwath HTL had the
Domestic chain hotels* 144 168
37% privilege of advising PHH in this process.
Chain Room 14% International chain rooms* 27,726 31,870
penetration Chain Hotel Domestic chain rooms* 16,159 18,614
penetration Agata Przeniosło-Drozd, Senior Consultant & Partner
Horwath HTL Poland
** Source: GUS (Central Statistic Office)
Poland: Ranking by Size Poland: Ranking by Scale
1 Accor 75 12,584 1 Ibis Styles & Budget 34 4,588 1 Gomada 9 938 1 Ibis 33 4,502
2 Best Western 20 1,726 2 Mercure 24 3,812 2 Wam 15 1113 2 Mercure 13 1,736
3 Louvre Hotel Group 20 2,482 3 Polski Holding Hotelowy* 17 1,405 3 Elbest 5 504 3 Best Western 14 1,122
4 Hilton 19 3,330 4 Novotel 13 3,403 4 Focus 6 571 4 Campanille 10 1,106
5 Polski Holding Hotelowy* 17 1,405 5 Arche 12 1,949 5 Satoria Group 7 1106 5 Hampton By Hilton 9 1,375
6 Marriott International 15 3,330 6 CFI Hotels 12 876 6 Arche 7 914 6 B&B 5 641
7 Arche 12 1,949 7 Hampton 10 1,475 7 Hotel 500 3 413 7 Novotel 4 628
8 CFI Hotels 12 876 8 Campanile 10 1,106 8 Qubus 6 407 8 Premiere Class 2 262
9 Radisson 11 2,497 9 Zdrojowa Invest 9 1,068 9 Hotel Centrum 3 373 9 Puro 2 238
10 Focus 10 896 10 Dobry Hotel 9 583 10 Syrena 2 325 10 Vienna House Easy 1 220
1 Polski Holding Hotelowy* 17 1,405 1 Polski Holding Hotelowy* 17 1,405 1 Gołębiewski 4 2,331 1 Novotel 9 2,775
2 Arche 12 1,949 2 Arche 12 1,949 2 Qubus 14 1,465 2 Mercure 11 2,076
3 CFI Hotels 12 876 3 CFI Hotels 12 876 3 Q Hotels 6 733 3 Holiday Inn 5 823
4 Focus 10 896 4 Zdrojowa Invest 9 1,068 4 Diament 7 663 4 Golden Tulip 6 817
5 Dobry Hotel 9 583 5 Dobry Hotel 9 583 5 Interferie 2 390 5 Radisson Blu 2 804
6 Zdrojowa Invest 9 1,068 6 De Silva 7 556 6 Boutique Hotels 3 326 6 Courtyard By Marriott 3 587
7 De Silva 7 556 7 Likus 7 591 7 Zdrojowa Invest 4 317 7 Best Western 5 577
8 Likus 7 591 8 Gołębiewski 4 2,331 8 Malinowe Hotele 3 278 8 Puro 4 577
9 Q Hotels 5 541 9 Malinowe Hotele 3 278 9 Focus 3 231 9 Double Tree By Hilton 2 432
10 Gołębiewski 4 2,331 10 Trip 1 174 10 Hilton Garden Inn 3 410
1 Accor 75 12,584 1 Ibis Styles & Budget 34 4,588 1 Zdrojowa Invest 4 677 1 Radisson Blu 6 1,483
2 Best Western 20 1,726 2 Mercure 24 3,812 2 Likus 4 311 2 Sheraton 4 951
3 Louvre Hotel Group 20 2,482 3 Novotel 13 3,403 3 Sofitel 3 675
4 Hilton 19 3,330 4 Hampton 10 1,475 4 Double Tree By Hilton 2 549
5 Marriott International 15 3,330 5 Campanile 10 1,106 5 Hilton 2 464
6 Radisson 11 2,497 6 Golden Tulip 7 894 6 Marriott 1 523
7 IHG 10 1,714 7 Radisson Blu 7 1,947 7 Intercontinental 1 414
8 PURO 6 951 8 Holiday Inn 6 1,060 8 Westin 1 361
9 Vienna House 6 1,216 9 PURO 6 951 9 Holiday Inn 1 237
10 10 Double tree 4 981 10 Bristol 1 206
* with branded chain hotels - it is 25 hotels
Poland: Ranking per Scale & Size Poland: Ranking by Destination
Hotels Rooms Avg Size Hotels Rooms Hotels Rooms 1 Cracow 168 1 Warsaw 14,600
Budget & Economy 49 5,535 113 18 1,639 31 3,896 2 Warsaw 97 2 Cracow 11,180
Midscale 152 16,330 107 82 7,339 70 8,991 3 TriCity 85 3 TriCity 6,500
Upscale & U.Upscale 127 21,306 168 55 8,302 72 13,004 4 Poznan 63 4 Wrocław 5,200
Luxury 38 7,313 192 13 1,334 25 5,979 5 Wrocław 60 5 Poznan 3,960
TOTAL 366 50484 138 168 18614 198 31870
Poland: Pipeline (2018/19)

Poland: Business Model
HOTELS ROOMS
BY HOTELS Rank Destination Current Investments Total Current Investment Total
Franchising Lease Mgt. Contract Owned Total 1 Warsaw 97 21 118 14,600 4400 19,000
Economy 1 3 6 39 49 2 Cracow 168 8 176 11,180 1030 12,210
Midscale 29 12 17 94 152 3 TriCity 85 9 94 6,500 1989 8,489
Upscale & U.Upscale 29 9 21 68 127 4 Wrocław 60 6 66 5,200 863 6,063
Luxury 5 2 15 16 38
5 Poznan 63 5 68 3,960 440 4,400
TOTAL 64 26 59 217 366
BY ROOMS
Franchising Lease Mgt. Contract Owned Total

250
Economy 77 94 608 4756 5,535 253
240
Midscale 2,691 1,026 2,186 10,427 16,330
222
Upscale & U.Upscale 4,133 1,014 3,228 12,931 21,306 209
200
Luxury 1,312 160 2,697 2,144 6,313
187
TOTAL 8,213 2,294 8,719 30,258 49,484
159
150
150
143
131
Poland: Institutional Owners 2018 120

100 107
97
89
Rank Name No. of Keys 80 73
70 70 68 69
66 63
1 Union Investment 1,306 50
60
51
50 50
44 45 43
2 DekaBank 744 39
43 41 28 25 23
19 19
26 26 13 13 7
3 Invesco 539 16 16 19 22 21
7
21
3
22
4
19 7 6 12 5
4
10 10 12 13 2 11 1 2 2 2
0
Source: Real Capital Analytics, Inc. 2019 in
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Portugal
Having grown strongly from a relatively low base

following the financial crisis, Portugal is clearly
on the map when it comes to being a force to be
reckoned with in the European hospitality arena.

Portugal was voted the World’s Leading Destination and • Local players have the knowledge;
the World’s Best Golf Destination in 2018 by the World new international entries: Strategic or Tactical?
Travel Awards. Positive growth in Portuguese tourism Three of the top five chains are domestic. 29%
is the driving force behind stronger hotel performance, of chain rooms are controlled by four domestic
but a lack of properties of the right size and at affordable brands. International chain brands have yet to
prices, especially in Lisbon, together with a staff supply penetrate all of the key markets, being located
shortage that is starting to put pressure on personnel mainly in the Lisbon area.
costs, are presenting challenges for the investment
market. •
Undiscovered Portugal holds the key to the future
50% of all chain hotel rooms are located in Lisbon, the
Porto is increasingly on the city map, as well as less Algarve and Madeira (65% of rooms); no surprise given
Key Statistics 2018
developed parts of the country such as Alentejo and the the history of tourism in Portugal. But future growth
Total chain hotels 336 Douro Valley. Pressure from growing demand means is anticipated in the other regions of the country,
Total chain rooms 43,069 that some projects which were put on hold during the opening up new opportunities across all categories.
Average size per chain hotel in rooms 128 financial crisis are now being concluded and released to
the market. The Troia Peninsula and Alentejo coast, have •
Asset ownership will consolidate further,
a number projects under development that will provide sparking chain management growth
additional recognition, especially in international markets. Chain penetration is relatively low which is to
be expected from a market that is still quite
Chain penetration % by hotels 26% Portugal’s Golden Visa scheme is behind many mixed-use fragmented in terms of ownership. 45% of all chain
Chain penetration % by rooms 44% hospitality developments, as developers try to combine hotels (44% of chain hotel rooms) are controlled
Total number of brands 45 the strength of the hotel market with the financial appeal by the top five chains.
Domestic brands 19 of secondary residential sales within a resort environment.
Airbnb now has a tax agreement with both Lisbon and
Porto and more than 50,000 listings in the country as a
Hotels whole. Marriott International recently announced it was
44% extending its home-sharing pilot to include Lisbon. It
Chain Room 26% International chain rooms* 10,779 offers rooms in collaboration with Hostmaker, with guests
penetration able to earn Marriott loyalty points.
Note: Portugal is a new market to report - only 2018 data available Philip Bacon MRICS, FCA, Senior Director
Data source: Alimarket Horwath HTL Spain, Andorra & Portugal
Portugal: Ranking by Size Portugal: Ranking by Scale
1 Pestana Hotel Group 58 5,657 1 Vila Gale 23 4,334 1 Vila Gale 23 4,334 1 Ibis 19 1,803
2 Vila Gale Group 23 4,334 2 Pestana 19 3,747 2 Sana 14 2,218 2 TRYP by Wyndham 7 1,082
3 Accor Hotels 33 3,440 3 Sana 14 2,218 3 VIP 9 1,724 3 Holiday Inn 4 754
4 Marriott International 20 2,914 4 Tivoli 10 1,997 4 Inatel 10 666 4 Mercure 6 690
5 Hoti Hotéis 16 2,462 5 Ibis 19 1,803 5 Hoti 3 481 5 Holiday Inn Express 5 616
6 SANA Hotels 14 2,218 6 VIP 9 1,724 6 HF Hotéis Fénix 4 443 6 Golden Tulip 4 324
7 Tivoli Hotel & Resorts 10 1,997 7 Porto Bay 10 1,521 7 Dom Pedro 1 263 7 Ibis Budget 2 177
8 IHG 12 1,962 8 HF Hotéis Fénix 9 1,363 8 Turim 3 197 8 Ibis Styles 2 160
9 VIP Hotels 9 1,724 9 Dom Pedro 6 1,302 9 Pousadas de Portugal 7 171 9 Campanile 1 72
10 Porto Bay Hotels & Resorts 10 1,521 10 Hotéis Real 8 1,280 10 Lux 1 48 10 Tulip Inn 1 67
1 Pestana Hotel Group 58 5,657 1 Vila Gale 23 4,334 1 Pestana 19 3,747 1 Muthu 5 1,059
2 Vila Gale Group 23 4,334 2 Pestana 19 3,747 2 Tivoli 10 1,997 2 Eurostars 10 941
3 Hoti Hotéis 16 2,462 3 Sana 14 2,218 3 Porto Bay 7 1,200 3 Sheraton 3 791
4 SANA 14 2,218 4 Tivoli 10 1,997 4 Turim 10 874 4 Marriott 2 754
5 Tivoli Hotel & Resorts 10 1,997 5 VIP 9 1,724 5 Dom Pedro 4 776 5 Meliá 4 642
6 VIP Hotels 9 1,724 6 Porto Bay 10 1,521 6 HF Hotéis Fénix 4 639 6 Crowne Plaza 2 555
7 Porto Bay Hotels & Resorts 10 1,521 7 HF Hotéis Fénix 9 1,363 7 Pousadas de Portugal 14 514 7 Design 9 456
8 HF Hotéis Fénix 9 1,363 8 Dom Pedro 6 1,302 8 Hotéis Real 3 446 8 Novotel 3 447
9 Dom Pedro Hotels 6 1,302 9 Hotéis Real 8 1,280 9 Olissipo 4 419 9 Radisson Blu 1 221
10 Discovery Hotel Management 13 1,297 10 Pousadas de Portugal 32 1,184 10 Luna 6 414 10 AC By Marriott 1 128
1 Accor Hotels 33 3,440 1 Ibis 19 1,803 1 NAU 6 798 1 The Luxury Collection 3 519
2 Marriott International 20 2,914 2 TRYP by Wyndham 7 1,082 2 Hotéis Real 4 759 2 InterContinental 3 495
3 IHG 12 1,962 3 Muthu 5 1,059 3 Pousadas de Portugal 11 499 3 The Ritz-Carlton 1 194
4 MGM Muthu Hotels 5 1,059 4 Eurostars 10 941 4 Porto Bay 3 321 4 Sofitel 1 163
5 Eurostars Hotels 10 941 5 Sheraton 3 791 5 HF Hotéis Fénix 1 281 5 Six Senses 1 57
6 Louvre Hotels 6 463 6 Holiday Inn 4 754 6 Dom Pedro 1 263
7 Marriott 2 754 7 Pestana Collection 2 192
8 Mercure 6 690 8 Olissipo 1 109
9 Meliá 4 642
10 Holiday Inn Express 5 616
Portugal: Ranking per Scale & Size Portugal: Ranking by Destination
Hotels Rooms % Avg Size Hotels Rooms Hotels Rooms 1 Lisbon City 88 1 Lisbon City 12.747
Budget & Economy 5 366 1% 73 3 189 2 177 2 Algarve 58 2 Algarve 11,186
Midscale 128 16,741 38% 131 89 12,770 39 3.971 3 Madeira 23 3 Madeira 3,970
Upscale & U.Upscale 161 20,784 48% 129 125 15,581 36 5.203 4 Porto City 31 4 Porto City 3,828
Luxury 41 5,103 12% 124 32 3,675 9 1.428 5 Lisbon Area 32 5 Lisbon Area 3,562
TOTAL 335 42,994 100% 128 249 32,215 86 10.779 6 Coimbra & Central Region 36 6 Coimbra & Central Region 2,764
7 Porto Area & Norte Region 31 7 Porto Area & Norte Region 2,315
8 Azores 16 8 Azores 1,545
250
253 9 Alentejo 21 9 Alentejo 1,152
240
222
200 209
187
Portugal: Pipeline (2019/20)
159
150
143
150
HOTELS ROOMS
131
Rank Destination Current Investments Total Current Investment Total
120
100 107
97 1 Lisbon City 88 1 89 12,747 204 12,951
89
80 73 2 Algarve 58 2 60 11,186 191 11.377
70 70 68 69
66 63
50
60 3 Madeira 23 - 23 3,970 - 3,970
50 50 51
43 44 45 43
39 41 28 25 23
19 19
4 Porto City 31 - 31 3,828 - 3,828
26 26
22
13 13 7
22 21 4
10
16 16
10
19 7
21
3 4
19 7
12
6
13 2 11 1 12 2 5 2 2 5 Lisbon Area 32 1 33 3,562 100 3,662
0
6 Coimbra & Central Reg. 36 1 37 2,764 81 2,845
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7 Porto Area & Norte Reg. 31 - 31 2,315 - 2,315

M
N
8 Azores 16 - 16 1,545 - 1,545

Portugal: Demand Driver 9 Alentejo 21 - 21 1,152 - 1,152
DRIVER DOMESTIC INTERNATIONAL OVERALL

Portugal: Hotel Investors 2018 Portugal: Institutional Owners 2018
Art & Business 107 15,348 50 6,547 157 21,895
Business Focus 1 171 - - 1 171
Golf 7 1,201 1 177 8 1,378
1 Explorer Investments 100 1 Square Asset 451
Ski 2 130 0 0 2 130
2 Carlyle Group 100 2 Credit Suisse 300
Sun & Beach 64 10,831 19 2.710 83 13,541 3 Gaw Capital 53.8 3 Espirito Santo Group 254
Thermal 3 246 0 0 3 246 4 Paris Inn Group 38.0 4 ECS Capital 229
Wine 1 38 1 57 2 95 5 Porto Bay Hotels & Resorts 20.0 5 Turismo Fundos SGFII SA 225
Other Leisure 65 4,325 15 1,288 80 5,613 Source: Real Capital Analytics, Inc. 2019 Source: Real Capital Analytics, Inc. 2019
Serbia
Developer interest in chains has been significant

over the last five years. Secondary cities, mountain
and spa destinations are expected to follow, backed
by increasing economic and tourism activity.

An increase of 6% in room stock in Serbia indicates •
Belgrade in focus
a healthy growing hotel market. More than 100 new With 65% of total chain/brand hotel rooms, Belgrade
hotels have opened since 2014, out of which 40 are in confirms its spotlight. Out of 14 international brands
the capital city Belgrade, which is the main business & in Serbia, 13 are present in Belgrade. Development
administrative centre and the central tourist destination. of other locations is solely driven by the efforts of
The shift in hotel developments has been driven primarily domestic hotel chains such as MK Group in Kopaonik
by international brands entering the Belgrade market in and Novi Sad.
2013/14, with the introduction of brands Crowne Plaza,
Radisson Blu, and Luxury Collection. • Only two domestic players
The domestic chain scene is still underdeveloped
There is a low number of domestic chains in comparison with only two active players (MK Group and A Hoteli).
Key Statistics 2018
to the regional players, which indicates the market is Next year it will expand with two more chains, Delta
Total chain hotels 22 still immature and fragmented. This could influence the Holding and Mona Hotel Management. Delta Holding
Total chain rooms 3,520 presence of international brands, which may face lower has already made a footprint on the international
Average size per chain hotel in rooms 160 standards of competition. Domestic chains are limited to market with its InterContinental hotel in Ljubljana,
MK Group and A Hoteli, with five hotels each, primarily while Mona Hotel Management currently manages
targeting the Upscale and Upper Upscale segment, three hotels in Serbia and one in Montenegro, with
while international chains are mostly present with single one 4* facility under construction in Belgrade.
properties, apart from the Marriott International (677
Chain penetration % by hotels 5.91% rooms in 3 hotels) and IHG (500 rooms in 3 hotels). •
IHG & Marriott are in the lead
Chain penetration % by rooms 19.12% IHG and Marriot are currently the leading international
Total number of brands 13 Key hotel performance indicators show a positive trend hotel chains providing 6 out of a total 14 hotel brands
Domestic brands 1 with double-digit growth since 2015. The chief driver on the market, and are in the process of introducing
has been the introduction of new quality internationally their luxury portfolio on the Belgrade market with
branded hotels in the Belgrade market. Overall the InterContinental, St. Regis and W Belgrade.
Hotels country has not yet capitalized on its tourism potential,
19% bearing in mind the modest marketing budgets and “old-
Chain Room 6% International chain rooms* 2,447 fashioned” destination management model – but on the
penetration other hand, it offers strong potential for development.
Note: Serbia is a new market to report - only 2018 data available Branislav Miletić, Partner
Horwath HTL Croatia
Serbia: Ranking by Size Serbia: Ranking by Scale
1 MK Group 5 863 1 A Hoteli 4 437 1 Holiday Inn Express 1 123

2 A Hoteli 5 483 2 Crowne Plaza 1 416
3 Marriott International 3 500 3 Hyatt Regency 1 302
1 A Hoteli 3 310 1 Crowne Plaza 1 416
4 IHG 3 677 4 Hilton 1 242
2 Falkensteiner 1 170
5 Accor 2 198 5 Radisson Collection 1 236
3 Sheraton 1 150
6 Hyatt International 1 302 6 Luxury Collection 1 236
4 Holiday Inn 1 139
7 Hilton Worldwide 1 242 7 Falkensteiner 1 170
5 Mama Shelter 1 125
8 Rezidor Hotels Group 1 236 8 Sheraton 1 150
6 Courtyard by Marriott 1 114
9 Falkensteiner 1 170 9 Holiday Inn 1 139
7 Mercure 1 73
10 Louvre Hotels 1 105 10 Mama Shelter 1 125
8 Allure hotels by Karisma 1 17
1 MK Group 5 863 1 A Hoteli 4 437
1 A Hoteli 1 127 1 Hyatt Regency 1 302
2 A Hoteli 5 483
2 Hilton 1 242
International Chain Groups Hotels Rooms International Chain Brands Hotels Rooms 3 Radisson Collection 1 236
1 Marriott International 3 500 1 Crowne Plaza 1 416 4 Luxury Collection 1 236
2 IHG 3 677 2 Hyatt Regency 1 302
3 Accor 2 198 3 Hilton 1 242
4 Hyatt International 1 302 4 Radisson Collection 1 236
Serbia: Ranking per Scale & Size
5 Hilton Worldwide 1 242 5 Luxury Collection 1 236
6 Rezidor Hotels Group 1 236 6 Falkensteiner 1 170 CHAINS OVERALL DOMESTIC INTERNATIONAL
7 Falkensteiner 1 170 7 Sheraton 1 150
8 Louvre Hotels 1 105 8 Holiday Inn 1 139
Budget & Economy - - - - - -
9 Karisma Hotels 1 17 9 Mama Shelter 1 125
Midscale 1 123 - - 1 123
10 Holiday Inn Express 1 122
Upscale & U.Upscale 11 1,514 3 310 8 1,204
Luxury 5 1,143 1 127 4 1,016
TOTAL 17 2,780 4 437 13 2,343
Serbia: Business Model Serbia: Ranking by Destination
BY HOTELS Rank Destination By Hotels Rank Destination By Rooms
Franchise % Mgt. Contract % Owned % Total % 1 Belgrade 14 1 Belgrade 2,385
Economy - - - - 1 9% 1 4% 2 Kopaonik 3 2 Kopaonik 625

Midscale 1 25% 1 13% - - 2 9% 3 Novi sad 2 3 Novi sad 204
Upscale & U.Upscale 2 50% 3 38% 9 82% 14 61% 4 Zlatibor 1 4 Aranđelovac 165
Luxury 1 25% 4 50% 1 9% 6 26% 5 Vrnjačka Banja 1 5 Zlatibor 127
TOTAL 4 17% 8 35% 11 48% 23 100%
6 Aranđelovac 1 6 Šabac 91
BY ROOMS 7 Šabac 1 7 Vrnjačka Banja 46
Franchise % Mgt. Contract % Owned % Total %

Economy - - - - 46 3% 46 1%
Midscale 122 19% 105 7% - - 227 6%
Serbia: Pipeline (2018/19)
Upscale & U.Upscale 289 45% 728 45% 1,210 87% 2,227 61%
Luxury 236 36% 780 48% 127 9% 1,143 31%
HOTELS ROOMS
TOTAL 647 18% 1,613 44% 1,383 38% 3,643 100%
Rank Destination Current Investments Total Current Investment Total
1 Belgrade 14 4 18 2,385 600 2,985

2 Kopaonik 3 1 4 625 119 744
250 3 Novi Sad 2 0 2 204 0 204

253
240 4 Aranđelovac 1 0 1 165 0 165
222 5 Zlatibor 1 0 1 127 0 127
200 209
6 Šabac 1 0 1 91 0 91
187
7 Vrnjačka Banja 1 0 1 46 0 46
159
150
150
143
131
Serbia: Demand Driver

120
100 107
97
89
80 73
66
70 70 68
63
69 DRIVER DOMESTIC INTERNATIONAL
60
50
50 50 51
39
43 44 41 45 43 28 25
Hotels Rooms Hotels Rooms
23
19 19
26 26 13 13 7
16 16 19 22 21
7
21
3
22
4
19 7 6 5
4 Art & Business 2 145 13 2,342
10 10 12 13 2 11 1 12 2 2 2
0
Ski 1 127 - -
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Thermal 1 165 - -
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Slovenia
The Slovenian hotel sector is predominantly publicly

owned but expected to experience a restructuring
process. This will open the market to investment,
creating opportunities for a variety of products.

Slovenia is experiencing growth in tourist arrivals (12% •
Domination of state-owned domestic hotel Chains
CAGR since 2014) placing it as one of the up and coming Domestic chains dominate the market representing
leaders in the region for tourism. Its offerings of nature top 8 hotel chains in terms of size (out of which 6
and thermal springs have become popular, especially for are state-owned companies). This also applies to
transit tourists not looking to travel great distances. hotel brands, as most of the domestic companies are
With approximately 40% of hotels being state-owned, the developing comprehensive brands covering the whole
industry has been slow in keeping up with international portfolio.
standards and needs restructuring and investment in
order to keep its global competitiveness. The government •
2018 good year for international brands
recognises the need for change and has approved the Currently there are 12 international brands present
new Tourism strategy, which favours developing high- with InterContinental, Ibis Styles and Mercure
Key Statistics 2018
quality hotel projects. opening their doors in 2018. This trend is expected to
Total chain hotels 78 continue with interest from other international brands,
Total chain rooms 8,590 Hotel chains are dominated by local players such as Sava especially in the Ljubljana market.
Average size per chain hotel in rooms 110 Hotels & Resorts, HIT, and Unitur Hotels & Resorts. The
largest international chain present is the Croatian-based •
Limited pipeline but high expectations
Liburnia Riviera Hoteli. There is very little in the pipeline There are no confirmed development projects from
for chain/brand development and only on a speculative hotel chains/brands. One 4* Greenfield hotel project
basis. The performance of the hotel sector is still low in in Ljubljana is rumoured to be branded but the
Chain penetration % by hotels 23.85% comparison to the region and growth is below the market project concept is still in development. The expected
Chain penetration % by rooms 44.01% potential. The new InterContinental Ljubljana and several privatisation process may lead other international
Total number of brands 19 new boutique hotels have been able to outperform the chains to enter the market.
Domestic brands 7 market, which is a clear sign of the lack of internationally
competitive products and an opportunity for supply
driven growth. With strong tourism growth, a limited
Hotels pipeline, low penetration rates of international brands,
44% limited hotel supply and the imminent privatisation of the
Chain Room 24% International chain rooms* 2,205 state-owned companies, there are plenty of opportunities
penetration for hotel investors in Slovenia.
Note: Slovenia is a new market to report - only 2018 data available Siniša Topalović, ISHC, Managing Partner
Horwath HTL Croatia
Slovenia: Ranking by Size Slovenia: Ranking by Scale
1 Sava Hotels and Resorts 15 1,765 1 Sava Hotels and Resorts 15 1,765 1 Sava Hotels and Resorts 5 257 1 Remisens 1 182
2 HIT Group 10 1,011 2 Terme Krka 9 641 2 Terme Olimia 2 236 2 Ibis Styles 1 71
3 Terme Krka 9 641 3 LifeClass 6 780 3 Rogla-Unitur Resort & Spa 2 110
4 Unitur Hotels & Resorts 8 305 4 Hoteli Bernardin 6 952 4 Terme Zreče 2 44
5 Hoteli Bernardin 6 952 5 Terme Olimia 5 830 5 Hoteli Bernardin 1 237
6 LifeClass Hotels & Resorts 6 780 6 Terme Zreče 4 149 6 Terme Krka 1 28
7 Terme Olimia 5 830 7 Rogla-Unitur Resort & Spa 4 156
8 Eurotas Hoteli 5 329 8 Remisens Premium 3 310
9 Liburnia Riviera Hoteli 4 492 9 Ramada 2 228
10 Best Western H&R 3 302 10 Best Western Premier 2 230
1 Sava Hotels and Resorts 8 1,299 1 Best Western Premier 2 230
Domestic Chain Groups Hotels Rooms Domestic Chain Brands Hotels Rooms 2 Terme Krka 7 597 2 Ramada 2 228
1 Sava Hotels and Resorts 15 1,765 1 Sava Hotels and Resorts 15 1,765 3 LifeClass 5 636 3 Remisens Premium 2 207
2 HIT Group 10 1,011 2 Terme Krka 9 641 4 Hoteli Bernardin 4 474 4 Four Points by Sheraton 1 239
3 Terme Krka 9 641 3 LifeClass 6 780 5 Terme Olimia 3 594 5 Radisson Blu 1 237
4 Unitur Hotels & Resorts 8 305 4 Hoteli Bernardin 6 952 6 Terme Zreče 2 105 6 Austria Trend Hotels 1 214
5 Hoteli Bernardin 6 952 5 Terme Olimia 5 830 7 Rogla-Unitur Resort & Spa 2 46 7 Mercure 1 76
6 LifeClass Hotels & Resorts 6 780 6 Terme Zreče 4 149 8 Best Western 1 72
7 Terme Olimia 5 830 7 Rogla-Unitur Resort & Spa 4 156
8 Eurotas Hoteli 5 329
1 Sava Hotels and Resorts 2 209 1 Kempinski 1 181

International Chain Groups Hotels Rooms International Chain Brands Hotels Rooms 2 Hoteli Bernardin 1 241 2 InterContinental Hotels 1 165
1 Liburnia Riviera Hoteli 4 492 1 Remisens Premium 3 310 3 LifeClass 1 144 3 Remisens Premium 1 103
2 Best Western H&R 3 302 2 Ramada 2 228 4 Terme Krka 1 16
3 Wyndham 2 228 3 Best Western Premier 2 230
4 Accor 2 147 4 Four Points by Sheraton 1 239
5 Marriott International 1 239 5 Radisson Blu 1 237
6 Radisson 1 237 6 Austria Trend Hotels 1 214
7 Austria Trend Hotels 1 214 7 Remisens 1 182
8 MK Grupa 1 181 8 Kempinski 1 181
9 IHG 1 165 9 InterContinental Hotels 1 165
10 10 Mercure 1 76
Slovenia: Ranking per Scale & Size Slovenia: Ranking by Destination
Hotels Rooms Hotels Rooms Hotels Rooms 1 Portorož 16 1 Portorož 2,390
Budget & Economy 1 100 1 100 - - 2 Bled 7 2 Ljubljana 1,205
Midscale 14 1,065 12 812 2 253 3 Kranjska Gora 6 3 Bled 687
Upscale & U.Upscale 42 5,254 31 3,751 11 1,503 4 Ljubljana 5 4 Kranjska Gora 602
Luxury 8 1,059 5 610 3 449 5 Rogla 4 5 Podčetrtek 566
TOTAL 65 7,478 49 5,273 16 2,205 6 Podčetrtek 4 6 Nova Gorica 441

7 Zreče 4 7 Radenci 419
8 Nova Gorica 4 8 Moravske Toplice 415
9 Moravske Toplice 3 9 Tuhelj 264
Slovenia: Business Model 10 Radenci 2 10 Dolenjske Toplice 235
BY HOTELS

Economy - - - 1 2% 1 1%
Slovenia: Demand Driver
Midscale 1 13% - - 19 29% 20 26%
Upscale & U.Upscale 7 88% 1 100% 1 33% 40 61% 49 63% DRIVER DOMESTIC INTERNATIONAL
Luxury - - 2 67% 6 9% 8 10% Hotels Rooms Hotels Rooms

TOTAL 8 10% 1 1% 3 4% 66 85% 78 100% Art & Business - - 7 1,172
BY ROOMS Ski 4 156 3 300
Franchise % Lease % Mgt Cont % Owned % Total % Sun & Beach 14 1,879 5 673
Thermal 25 2,611 - -
Economy - - - 100 1% 100 1%
Midscale 71 7% - 1,346 20% 1,417 16% Other Leisure 6 627 1 60
Upscale & U.Upscale 1,006 93% 214 100% 76 18% 4,718 69% 6,014 70%
Luxury - - 346 82% 713 10% 1,059 12%
TOTAL 1,077 13% 214 2% 422 5% 6,877 80% 8,590 100% 250
253
240
222
200 209
187
159
150
150
143
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120
100 107
97
89
80 73
70 70 68 69
66 63
60
50
50 50 51
43 44 45 43
39 41 28 25 23
19 19
26 26
22
13 13 7
16 19 22 21
7
21 19 7 4
16 3 4 6 12 5
10 10 12 13 2 11 1 2 2 2
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Spain
Growth has slowed for the one of the world’s

most-visited countries, but Spain remains a tourism
power-house that continues to focus on combining
established strengths and innovation to satisfy the
customers of tomorrow.
Spain continues to consolidate the remarkable growth •
Growth in new chain properties has been modest
seen over the last five years. Growth showed signs of International chain penetration rates have reached
stabilization in 2018, registering an increase in output of stabilization in a market dominated by domestic
2% to reach €142 billion (11.8% of GDP, which grew by players. Significant opportunities for international
2.5%). chain growth are limited and remain tactical rather
than strategic with two Accor brands (Ibis and
The trend for refurbishing and repositioning continues, Novotel), AC by Marriott and Tryp by Wyndham now
as specialist hotel investment funds, together with established exceptions.
existing property owners and hotel operators, come to
terms with the mismatch between an ageing room stock •
Refurbishment/rebranding of existing properties
and demands of guests. This rejuvenation is bringing still on the radar for chains
new brands to the market. The relative availability of The added value proposition of chain brands continues
Total chain hotels 2,353 2,488 5.7% capital has helped to accelerate the process of creating to drive the upside opportunities being sought by
Total chain rooms 375,523 392,301 4.5% an industry for future decades. owners and investors. Improvements in profitability
Average size per chain hotel in rooms 160 158 -1.2% are very much focused on finding cost and distribution
However, supply shortages in certain key markets such efficiencies; asset management is the key.
as Madrid, Barcelona, the Balearic Islands and the Costa
Country rooms Stock (overall supply) 669,647 695,949 3.9%
del Sol, are reducing yield potential to an unacceptable •
Ownership consolidation will continue
level for some investors who are now starting to look The entry of Blackstone as a key player with the
Chain penetration % by hotels 33% 34% 2.5% eastwards in order to find the upside they seek. Supply acquisition of Hispania and Minor’s interest in NH
Chain penetration % by rooms 56% 56% 0.5% shortages are, in turn, providing opportunities for new signal a shift in the ownership structure of Spain’s
Total number of brands 247 253 2.4% development, although unravelling the planning process hospitality assets. This trend will continue as a
Domestic brands 185 188 1.6% and finding adequate project finance remain the main generational shift takes hold of the country as a whole.
challenges for many green field sites, as well as finding
2,488 International brands 63 65 3.2%
the concepts that will satisfy the needs of the coming
Hotels generations.
56%
Chain Room 34% Domestic chain hotels* 1,990 2.116 6.3% Philip Bacon MRICS, FCA, Senior Director
penetration Chain Hotel International chain rooms* 53,337 54,494 2.2% Horwath HTL Spain, Andorra & Portugal
penetration
Domestic chain rooms* 322,186 337,807 4.8%
Data source: Alimarket
Spain: Ranking by Size Spain: Ranking by Scale
1 Meliá Hotels International 82 25,133 1 Meliá 41 12,039 1 Sol 28 10,146 1 Tryp by Wyndham 34 4,498
2 Barceló Hotel Group 61 15,492 2 Sol 28 10,146 2 Barceló 33 8,522 2 Ibis 42 4,466
3 Marriott International 89 13,149 3 H10 43 9,751 3 Best 22 8,015 3 B&B 28 2,715
4 Eurostars Hotel Company 125 13,146 4 Barceló 33 8,522 4 Catalonia 54 6,277 4 Holiday Inn Express 18 1,942
5 NH Hotel Group 104 12,463 5 NH 73 8,083 5 Princess 13 5,283 5 Ibis Budget 20 1,854
6 Accor Hotels 93 11,334 6 Best 22 8,015 6 Ilunion 23 3,701 6 Mercure 10 984
7 H10 Hotels 45 9,919 7 Eurostars 69 7,958 7 Exe 41 3,672 7 Campanile 7 852
8 Riu Hotels & Resorts 26 9,319 8 Riu 18 6,645 8 Playa 13 3,554 8 Travelodge 5 621
9 Iberostar Hotel & Resorts 31 8,125 9 Iberostar 22 6,539 9 Roc 12 3,286 9 Ibis Styles 7 589
10 Best Hotels 22 8,015 10 AC by Marriott 58 6,535 10 Grupotel 17 3,085 10 Holiday Inn 3 539
1 Meliá Hotels International 82 25,133 1 Meliá 41 12,039 1 Meliá 41 12,039 1 AC by Marriott 58 6,535
2 Barceló Hotel Group 61 15,492 2 Sol 28 10,146 2 H10 43 9,751 2 Novotel 10 2,499
3 Eurostars Hotel Company 125 13,146 3 H10 43 9,751 3 NH 73 8,083 3 Hilton 3 1,003
4 NH Hotel Group 104 12,463 4 Barceló 33 8,522 4 Eurostars 69 7,958 4 Club Aldiana 3 975
5 H10 Hotels 45 9,919 5 NH 73 8,083 5 Riu 18 6,645 5 Aluasoul 4 958
6 Riu Hotels & Resorts 26 9,319 6 Best 22 8,015 6 Iberostar 22 6,539 6 Pierre & Vacances 4 884
7 Iberostar Hotel & Resorts 31 8,125 7 Eurostars 69 7,958 7 Parador 96 6,121 7 Marriott 1 869
8 Best Hotels 22 8,015 8 Riu 18 6,645 8 Occidental 17 4,944 8 Sentido 4 806
9 Hoteles Globales 26 6,429 9 Iberostar 22 6,539 9 Hipotels 16 3,982 9 Robinson Club 3 798
10 Catalonia Hotels & Resorts 54 6,277 10 Globales 26 6,429 10 Hesperia 27 3,853 10 Sheraton 4 797
1 Marriott International 89 13,149 1 AC by Marriott 58 6,535 1 Gran Meliá 7 1,673 1 The Ritz-Carlton 2 942
2 Accor Hotels 93 11,334 2 Tryp by Wyndham 34 4,498 2 Lopesan 2 1,238 2 Club Magic Life 1 693
3 Wyndham Hotels Worldwide 35 4,761 3 Ibis 42 4,466 3 Riu Palace 3 1,198 3 The Luxury Collection 4 494
4 Thomas Cook 18 3,907 4 B&B 28 2,715 4 ME by Meliá 4 936 4 W 1 473
5 IHG 27 3,410 5 Novotel 10 2,499 5 Grand Palladium 2 840 5 Fairmont 1 432
6 B&B Hotels 28 2,715 6 Holiday Inn Express 18 1,942 6 GF 2 699 6 Seaside 2 422
7 Apple Leisure Group 9 2,283 7 Ibis Budget 20 1,854 7 Hipotels 3 616 7 Intercontinental 2 366
8 Hilton 12 2,020 8 Seaside 4 1,208 8 Zafiro 2 597 8 Pure Salt Luxury 2 226
9 TUI Hotels & Resorts 6 1,957 9 Pierre & Vacances 5 1,198 9 Insotel 2 568 9 St, Regis 1 125
10 Mac Hotels 7 1,678 10 Hilton 3 1,003 10 Protur 2 510 10 Edition 1 100
Spain: Ranking per Scale & Size Spain: Ranking by Destination Spain: Pipeline (2019/20)
CHAINS OVERALL DOMESTIC INTERNATIONAL Rank Destination Hotel Rooms Rank Destination Hotel Rooms
Hotels Rooms % Avg Size Hotels Rooms Hotels Rooms 1 Balearic Islands 428 81,102 1 Madrid 3 854
Budget & Economy 179 19,226 7.2% 107 126 14,036 53 5,190 2 Barcelona 340 43,092 2 Barcelona 3 422
Midscale 847 132,721 34.1% 157 702 113,972 145 18,749 3 Madrid 256 34,245 3 Canary Islands 1 342
Upscale & U.Upscale 1,334 216,883 53.1% 163 1,177 190,601 157 26,282 4 Canary Islands 246 69,628 4 Balearic Islands 1 334
Luxury 120 23,218 5.5% 193 103 18,945 17 4,273 5 Málaga 111 22,656 5 Tarragona 1 150
TOTAL 2,480 392,048 100.0% 158 2,108 337,554 372 54,494 6 Girona 87 12,527 6 La Coruña 2 119
7 Alicante 85 16,294 7 Navarra 1 80
8 Cádiz 74 12,266 8 Aragon 1 56
Spain: Business Model
Spain: Ownership Assets
BY HOTELS
Total Domestic International
Franchise % Lease % Mgt Cont % Owned % Total % Rank Name
Assets Assets Assets
Economy 12 8% 52 8% 13 5% 102 7% 179 7% 1 Sociedad Estatal de Gestión Inmobiliaria del Patrimonio, S.A. 96 96 -
Midscale 98 62% 201 30% 62 23% 485 35% 846 34% 2 The Blackstone Group Spain, S.L. 49 43 6
Upscale & U.Upscale 46 29% 398 60% 179 65% 711 52% 1,334 54% 3 Eurostars Hotel Company, S.L. 45 45 -
Luxury 2 1% 17 3% 20 7% 81 6% 120 5% 4 Catalonia Hotels & Resorts - Grupo 44 44 -
TOTAL 158 100% 668 100% 274 100% 1.379 100% 2.479 100% 5 Corporacion H10 Hotels, S.L. 41 41 -
6 Belagua 2013, S.A. (AC Hoteles) - Grupo 32 1 31
BY ROOMS
7 Hoteles Globales - Optursa Management, S.L. 32 25 7
8 Meliá Hotels International, S.A. - Grupo 30 30 -
Economy 739 4% 3,304 4% 1,382 3% 13,801 6% 19,226 5% 9 Grupo Inversor Hesperia, S.A. 24 24 -
Midscale 10,697 56% 28,024 31% 11,068 26% 82,888 34% 132,677 34% 10 Riu Hotels & Resorts - Riusa II, S.A. - Grupo 22 23 3
Luxury 366 2% 3,864 4% 3,336 8% 15,652 7% 23,218 6%
Spain: Demand Driver Spain: Hotel Investors 2018
TOTAL 19,266 100% 89,822 100% 42,616 100% 240,300 100% 392,004 100%
DRIVER DOMESTIC INTERNATIONAL Rank Name Volume in €m
250 Hotels Rooms Hotels Rooms 1 Blackstone 1,814.1

253
240 2 YTL Corp 220.0
Art & Business 797 95,932 187 25,742
222 3 RLH Properties 210.0
209
Business Focus 37 4,081 45 5,897
200 4 Colony Capital (REIT) 196.3
Golf 26 4,354 7 1,011
187 5 Hispania 165.0
Mountain/Ski 29 2,073 3 336 Source: Real Capital Analytics, Inc. 2019
159
150
150 Sun & Beach 890 194,778 90 17,734
143
131 Thermal 14 1,288 - - Spain: Institutional Owners 2018
120
100 107 Wine 6 398 3 236
97
89 Other Leisure 311 33,106 43 5,335 Rank Name No. of Keys
80 73
70 70 68 69 1 Blackstone 18,134
66 63
60
50
50 50 51 2 La Caixa 3,394
43 44 45 43
41 28
39 25 23
19 19 3 London + Regional 2,290
26 26
22
13 13 7
22 21 21 4
10
16 16
10
19 7
3 4
19 7
12
6
13 2 11 1 12 2 5 2 2 4 Grupo BBVA 2,155
0
5 InvestIndustrial 2,000
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Sweden
The Swedish hotel market is definitely mature

and is dominated to a large extent by a few
large ’homegrown’ players.

This is the first time that the Swedish market has featured •
Turnover Volumes Moderate
in the Chains and Hotels Report. The Swedish hotel Sweden is not seen a high volume transaction market,
market is definitely mature and is dominated to a large but investments were a decent €230 million in 2018.
extent by a few large ’homegrown’ players. In terms of The most active players were Fastighets AB Balder,
Chain penetration Sweden is squarely in the middle of the LKAB Fastigheter AB, Vasterkulla Hotell, Midstar AB
markets we cover, with chain hotels accounting for 20% and Kungsleden AB.
of inventory and rooms for 49%. There is a relatively low
number of overall brands, only 25, when the average for •
Local Money Rules
Europe is 81. In terms of holdings, local players are the most
significant holders of hotel assets. The largest,
Overall average rate and occupancy numbers are high, Midstar AB have 2,102 keys under ownership and
Key Statistics 2018
with the vast majority of hotels in the midscale, upper KLP Forsikring have 1,264. The largest ‘foreign’
Total chain hotels 429 and upper Upscale segment. Staffing costs are too high holding is a Norwegian fund, DNB ASA (Norway)
Total chain rooms 63,388 in Scandinavia in general to support Luxury products, and that owns almost a 1,000 keys.
Average size per chain hotel in rooms 148 even though there are a few, the ratio is much lower than
other European markets. •
Few International Brands
Since Hilton bought and sold Scandic, international
In terms of Brands, three groups, Scandic, Nordic Choice brands apart from Best Western have struggled to get
and Best Western dominate the scene, with Best Western a foothold in the market.
Chain penetration % by hotels 21.0% and Nordic Choice hotels having the most properties,
Chain penetration % by rooms 51.1% 91 each, but Scandic having the greatest number of
Total number of brands 31 bedrooms, 17,446 from 85 hotels. Norwegian chain First
Domestic brands 9 is next with 40 hotels closely followed by local Swedish
brand Elite hotels with 39 properties.
Hotels Leases are the most popular model in Sweden with
51% almost all of Scandics’ 85 properties being leases. This is
Chain Room 21% International chain rooms* 41,522 a well-accepted model in Scandinavia and not seen as a
penetration disadvantage.
Note: Sweden is a new market to report - only 2018 data available James Chappell, Global Business Director
Horwath HTL Global
Sweden: Ranking by Size Sweden: Ranking by Destination Sweden: Ranking by Scale
CHAINS BRANDS Rank Destination Hotel Rooms DOMESTIC BRANDS
Rank Chain Groups Hotels Rooms Rank Chain Brands Hotels Rooms 1 Stockholm 66 14,335 Rank Upscale & Upper Upscale Hotels Rooms
1 Best Western 91 10,203 1 Scandic Hotels 85 17,446 2 Gothenburg 27 5,621 1 Scandic Hotels 85 17,446
2 Nordic Choice Hotels 91 16,472 2 Best Western 58 5,386 3 Malmo 22 4,120 2 Elite Hotels 39 4,420
3 Scandic Hotels 85 17,446 3 Elite Hotels 32 4,185 3 Profil 8 945
4 Elite Hotels 39 4,420 4 Best Western Sure HotelS 31 1,598 Sweden: Hotel Investors 2018
5 First 40 5,239 5 First 40 5,239 INTERNATIONAL BRANDS
Rank Name Volume in €m
6 Radisson 16 4,023 6 Clarion Collection 27 2,662 Rank Economy & Midscale Hotels Rooms
7 Ligula Hospitality Group 28 3,404 7 Quality 26 5,086 1 Fastighets AB Balder 82.8
1 Best Western 58 5,386
2 LKAB Fastigheter AB 76.0
8 Best Western Plus 19 2,260 2 Best Western Sure Hotels 31 1,598
3 Vasterkulla Hotell 26.0
9 Clarion 13 4,105 3 Quality 26 5,086
4 Midstar AB 22.2
10 Comfort 13 2,194 4 Best Western Plus 19 2,260
5 Kungsleden AB 20.7
Domestic Chain Groups Hotels Rooms Domestic Chain Brands Hotels Rooms Source: Real Capital Analytics, Inc. 2019 5 Clarion 13 4,105
1 Scandic Hotels 85 17,446 1 Scandic Hotels 85 17,446 6 Comfort 13 2,194
2 Elite Hotels 39 4,420 2 Elite Hotels 32 4,185 Sweden: Institutional Owners 2018 7 Park Inn by Radisson 4 760
3 Ligula Hospitality Group 28 3,404 3 Good Morning Hotels 14 1,560 8 Ibis Styles 2 259
Rank Name No. of Keys 9 BW Signature Collection 2 208
4 Profil Hotels 8 945
1 Midstar AB 2,106 10 Ibis 1 52
International Chain Groups Hotels Rooms International Chain Brands Hotels Rooms
2 KLP Forsikring 1,264
Rank Upscale & Upper Upscale Hotels Rooms
1 Best Western 119 10,203 1 Best Western 58 5,386 3 Landsorganisationen LO 1,064
2 Nordic Choice Hotels 91 16,472 2 Best Western Sure Hotels 31 1,598 4 DNB ASA (Norway) 962 1 First 40 5,239
3 First 40 5,239 3 First 40 5,239 5 Storebrand 636 2 Clarion Collection 27 2,662
4 Radisson 16 4,023 4 Clarion Collection 27 2,662 Source: Real Capital Analytics, Inc. 2019 3 Ascend 12 2,425
5 Marriott International 7 1,320 5 Quality 26 5,086 4 Radisson Blu 11 3,093
6 Accor 4 462 6 Best Western Plus 19 2,260 5 BW Premier Collection 9 751
7 Hilton 1 289 7 Clarion 13 4,105 6 Design Hotels 5 577

250
253
8 Comwell 1 159 8 Comfort 13 2,194 7 Sheraton 1 465
240
8 Hilton 1 289
222
200 209 9 Courtyard by Marriott 1 278

Sweden: Ranking per Scale & Size 187 10 Radisson Collection 1 170
159
150
CHAINS OVERALL DOMESTIC INTERNATIONAL 143
150
131
Hotels Rooms % Avg Size Hotels Rooms Hotels Rooms
120
100 107
Budget & Economy 45 3,158 11% 70 14 1,560 31 1,598 97
89
Midscale 165 22,972 39% 139 - - 165 22,972 80 73
70 70 68 69
66
Upscale & U.Upscale 216 36,520 51% 169 133 23,261 83 13,259 50
63
60
50 50 51
44 45 43
Luxury 1 343 - - - - 1 343 39
43 41 28 25 23
19 19
26 26 13 13 7
TOTAL 427 62,993 100% 148 147 24,821 280 38,172 10
16 16
10
19 22 21
7
21
3
22
4
19 7
12
6
13 2 11 1 12 2 5 2
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With thanks to Benchmarking Alliance for their support with Swedish data.
N
Switzerland
The chain penetration rate by key is already at

over 26% and growing fast. 36 chain hotels with
roughly 4,300 additional keys will be added to
the existing supply in the next three years.

2018 data (Jan-Nov) reveal an above average decrease •
Accor swallowed Mövenpick
of overall hotel supply in Switzerland. Over a ten year 2018 Switzerland’s largest domestic chain group,
period (2009/18) the number of hotels had dropped on Mövenpick, was acquired by Accor. This transaction
average by 1.% per annum. In 2018, the country counted leaves the country with only one internationally
114 hotels less than the previous year, equalling a record renowned hotel chain: Kempinski. However, Kempinski
decrease of 2.6%. At the same time, we logged 312 chain operates only two hotels in Switzerland itself and
hotels representing an increase of 14.7% over 2017. Half ranks only 7th as a domestic group and 3rd as a brand.
of this growth is attributable to acquisitions and new
hotel openings - the other from small domestic chains. •
International upscale chain hotels trump in size
International chain hotels are the largest in
As a result, the average size of the chain hotels (number Switzerland: they have 167 rooms on average; this is
of keys per hotel) dropped from 111 in 2017 to 108 in more than 4 times the size of the smallest category
Total chain hotels 272 312 14.7% 2018. The total key stock in chain hotels increased to domestic 1-2* chain hotels with an average 38 rooms
Total chain rooms 30,109 33,775 12.2% 33,775 (+12.2%). per property and double the size of their domestic
Average size per chain hotel in rooms 111 108 -2.5% counterparts.
From Jan-Nov 2018, Switzerland welcomed 17,962,034
Country hotels stock (overall supply)** 4,375 4,261 -2.6%
guests who spent on average 2 nights and a total of •
5 new international brands – strong pipeline
Country rooms Stock (overall supply)** 129,932 129,174 -0.6%
35,914,360 nights in accommodation. Even though With a-ja Resort, Harry’s Home, Hard Rock Hotel,
Average size per hotel in rooms 29.7 30.3 2.1%
growth rates did not match those of the same period the b_smart and B&B five new brands entered Switzerland
Chain penetration % by hotels 6.2% 7.3% 17.8% previous year, the nationwide average room occupancy in 2018. The pipeline for the next three years (2019-
Chain penetration % by rooms 23.2% 26.1% 12.8% rate rose from 53.4% to 54.7%. 2021) includes another thirteen new brands waiting to
Total number of brands 65 73 13.8% conquer the Swiss market from East to West.
Domestic brands 8 9 25.0% The strong pipeline will continue to push smaller and
outdated supply out of the market. In the Zürich region,
312 International brands 57 64 10.5%
14 new chain hotels will add approx 2,000 keys to the
Chain Second-tier operated hotels 49 45 -8.2%
Hotels existing supply in all categories. Happily, and contrary to
26% previous year’s report, in 2019 the pipeline does not only
Chain Room 7% Domestic chain hotels* 114 135 18.4% include city hotels in A & B cities.
penetration
Michaela Wehrle, Partner
Domestic chain rooms* 9,390 10,423 11.0%
Horwath HTL Switzerland
* DOES NOT INCLUDE double counting
** Jan-Nov 2018
Switzerland: Ranking by Size Switzerland: Ranking by Scale
1 Accor 72 9,188 1 Ibis 25 2,539 1 Sorell 14 744 1 Ibis 24 2,437

2 IHG 11 2,149 2 Ibis budget 13 1,692 2 Ferienverein 4 507 2 Ibis budget 12 1,607
3 Marriott 13 2,002 3 Mövenpick 5 1,306 3 Hotels by Fassbind 3 178 3 Ibis styles 7 600
4 Radisson Hotel Group 5 1,058 4 Novotel 7 1,099 4 Swiss Night 1 51 4 Motel One 2 543
5 Sorell Hotels 18 981 5 Radisson Blu 5 1,092 5 Giardino 1 15 5 Best Western 9 536
6 Sunstar Hotels 10 956 6 Sorell 18 981 6 Holiday Inn Express 4 479
7 Best Western Hotels 14 935 7 Sunstar 10 956 7 Courtyard by Marriott 2 327
8 Hotels by Fassbind 7 758 8 Crowne Plaza 2 731 8 Park Inn 2 290
9 Boas Hotels 9 753 9 Ibis styles 8 719 9 25 hours 2 296
10 H Hotels 6 731 10 Bürgenstock Selection 5 658 10 Tulip Inn 2 228
1 Sorell 18 981 1 Sorell 18 981 1 Sunstar 10 956 1 Novotel 7 1,099

2 Sunstar Hotels 10 956 2 Sunstar 10 956 2 Hotels by Fassbind 2 382 2 Mövenpick 4 956
3 Hotels by Fassbind 7 758 3 Kempinski 2 596 3 Sorell 3 172 3 Radisson BLU 4 848
4 Boas Hotels 9 753 4 Hotels by Fassbind 5 560 4 Swiss Night 1 147 4 Crowne Plaza 2 731
5 Welcome Hotel Management 9 610 5 Ferienverein 4 507 5 Seiler Hotels 1 41 5 Swissotel 2 585
6 Manotel 6 610 6 Victoria Jungfrau Collection 4 463 6 Club Med 2 575
7 Kempinski 2 596 7 Giardino 4 260 7 NH 4 522
8 Fassbind Hotels 6 521 8 Swiss Night 2 198 8 Holiday Inn 3 390
9 Hotel Portfolio Holding 4 507 9 Seiler Hotels 2 191 9 Renaissance 2 387
10 Victoria Jungfrau Collection 4 463 10 Dorint 2 363
1 Accor 72 9,188 1 Ibis 25 2,539 1 Kempinski 2 596 1 Intercontinental 2 549

2 Intercontinental Hotels 11 2,149 2 Ibis budget 13 1,692 2 VJC 4 463 2 Bürgenstock Selection 3 397
3 Marriott 13 2,002 3 Mövenpick 5 1,306 3 Giardino 3 245 3 Mövenpick 1 350
4 Radisson Hotel Group 7 1,382 4 Novotel 7 1,099 4 Seiler Hotels 1 150 4 Autograph Collection 2 275
5 Best Western Hotels 14 935 5 Radisson Blu 5 1,092 5 La Reserve 1 102 5 Fairmont 1 236
6 H Hotels 6 731 6 Crowne Plaza 2 731 6 Mandarin Oriental 1 189
7 Katara Hospitality 5 658 7 Ibis styles 8 719 7 W 1 127
8 Club Med 2 575 8 Best Western 10 660 8 Steigenberger 1 126
9 Motel One 2 543 9 Bürgenstock Selection 5 658 9 Four Seasons 1 115
10 NH Hoteles 4 522 10 Swissotel 2 585 10 Dorchester Collection 1 109
Switzerland: Ranking per Scale & Size Switzerland: Ranking by Destination
Hotels Rooms % Avg Size Hotels Rooms Hotels Rooms 1 Zürich Region 74 1 Zürich Region 9,854
Budget & Economy 44 4,263 12.6% 97 6 230 38 4,033 2 Geneva Region 42 2 Geneva Region 5,613
Midscale 114 8,926 26.4% 78 64 3,838 50 5,088 3 Lake Geneva/Vaud Region 34 3 Lake Geneva/Vaud Region 3,730
Upscale & U.Upscale 116 15,338 45.4% 132 47 3,841 69 11,497 4 Berne Region 29 4 Grisons 3,086
Luxury 38 5,248 15.5% 138 19 2,376 19 2,872 5 Grisons 28 5 Berne Region 2,585
TOTAL 312 33,775 136 10,285 176 23,490 6 Aargau Region 19 6 Basle Region 2,308
7 Lucerne/Vierwaldtstättersee 19 7 Lucerne/Vierwaldtstättersee 1,960
8 Basle Region 18 8 Valais 1,134
Switzerland: Business Model
9 Valais 15 9 Aargau Region 1,039
10 Ticino 11 10 Ticino 728
BY HOTELS
Economy 5 11% 3 5% 17 23% 19 14% 44 14%

Midscale 23 52% 22 39% 17 23% 52 38% 114 37% Switzerland: Pipeline (2018/19) Switzerland: Demand Driver
Rank Destination Hotel Rooms DRIVER DOMESTIC INTERNATIONAL
Luxury - - 3 5% 19 25% 16 12% 38 12%
1 Zürich Region 14 2,071 Hotels Rooms Hotels Rooms
TOTAL 44 57 75 136 312
2 Berne Region 5 484
Art & Business 75 5,320 137 18,086
BY ROOMS 3 Basle Region 2 401
Business Focus 7 631 13 2,140
Franchise % Lease % Mgt Cont % Owned % Total % 4 Geneva 2 291
Mountain/Ski 28 2,366 11 1,208
Lake Geneva /
Economy 362 8% 305 5% 1,655 17% 1,941 15% 4,263 13% 5 3 253
Vaud Other Leisure 26 1,860 15 2,164
Midscale 2,119 45% 2,046 32% 1,565 16% 3,196 24% 8,926 26% 6 Fribourg 2 174
Upscale & U.Upscale 2,259 48% 3,710 59% 3,308 35% 6,,061 46% 15,338 45% Lucerne /
7 1 160
Luxury - - 257 4% 2,976 31% 2015 15% 5,248 16% Vierwaldstättersee
TOTAL 4,740 6,318 9504 13,213 33,775 8 Grisons 1 130
9 Jura & Three Lakes 2 126
10 Eastern Switzerland 1 112
250
253
240
222
200 209
187
Switzerland: Hotel Investors 2018 Switzerland: Institutional Owners 2018
150
159
150
143
131 1 Asklepios Kliniken 126.4 1 Credit Suisse 3,307
120 2 Sami al-Angari 35.9 2 UBS 628
100 107
97 3 Swiss Life AM 20.0 3 Swiss Life AM 599
89
80 73 Source: Real Capital Analytics, Inc. 2019 4 JER Partners 567
70 70 68 69
66
50
63
60 5 Government of Oman 390
50 50 51
43 44 45 43 Source: Real Capital Analytics, Inc. 2019
39 41 28 25 23
19 19
26 26
22
13 13 7
16 19 22 21
7
21 19 7 4
16 3 4 6 12 5
10 10 12 13 2 11 1 2 2 2
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Turkey
2018 has seen the first signs of improvement

for Turkey since the tourism crises in 2016. The
market is starting to show promising figures,
which should translate into an increase in ADR.

Turkey demonstrated the recovery of its tourism market •
Prosperous year are coming for Turkish tourism
with a record 40 million tourist arrivals. Re-establishing Turkey’s tourism sector suffered after the 2016 crises
close ties with other European countries has helped with but has started to regain its strength with promising
the recovery, which is evident both by increased ADR figures. It broke a record of 40 million tourist arrivals in
(6.5%) and RevPAR (3.9%), but is most apparent by an 2018, which should keep increasing in 2019.
occupancy rate increase of 2,5% to 60,9%.
•
Hotel chains keeps growing
In some areas, the Ministry of Culture and Tourism has New infrastructure and investment will be critical to
steered away from the concept of seasonal resorts reach tourism targets of turkey under the vision of
allowing resorts to be open for twelve months of the year. 2023 goals, including welcoming 50m visitors and
This enables existing resorts, to promote existing facilities earning $50bn. Local and international hotel chains
Key Statistics 2018
all year round and for winter ski resorts to become will take an important role to accomplish the target.
Total chain hotels 942 trekking havens in the summer.
Total chain rooms 177,785 •
World’s oldest temple - Gobeklitepe
Average size per chain hotel in rooms 25 Many tourists come to Turkey in search of culture and Every country has its unique historical heritage
there are no shortages of historical sites in the country, and it is something everyone should preserve and
including several that are on the World Heritage list. experience. Gobeklitepe is one of those that changed
One such site, Gobeklitepe, which has recently been the world’s human history and by promoting this
discovered, will soon be open to the public. The Chamber area Turkey hopes to attract tourists from all over the
Chain penetration % by hotels 19% of Regional Tourist Guides attributes the increase in world.
Chain penetration % by rooms 37% tourism to the region to the new site being included in
Total number of brands 60 the World Heritage list. Culture and Tourism Minister,
Domestic brands 44 Mehmet Nuri Ersoy, announced that 2019 will be the
“Gobeklitepe Year” for tourism. As Turkey’s tourism sector
gains ground, it hopes to reach its target in the years
Hotels ahead with new hotel investments being launched for a
37% prosperous tourism sector.
Chain Room 19% International chain rooms* 46,200
penetration Alp Ancel, Associate Director
Horwath HTL Turkey
Note: Turkey is a new market to report - only 2018 data available
Turkey: Ranking by Size Turkey: Ranking by Scale
1 Wyndham 75 10,953 1 Ramada 56 8,319 1 Titanic Comfort 2 122 1 Ibis 13 2,003

2 Hilton 63 12,674 2 Hilton Garden Inn 19 3,050 2 Divan Express 2 220 2 Hampton Inn by Hilton 13 1,619
3 Accor 42 7,453 3 DoubleTree by Hilton 17 2,732 3 Mercure 9 1,938
4 Marriott 30 5,686 4 Holiday Inn 14 2,097 4 Park Inn by Radisson 7 879
5 IHG 27 5,026 5 Radisson Blu 14 2,847 5 TRYP by Wyndham 5 525
6 Rixos 26 8,721 6 Divan 14 2,520 6 Holiday Inn Express 3 288
7 Anemon 18 2,210 7 Hampton by Hilton 13 1,619 7 Hawthorn 3 236
8 Divan 17 2,080 8 Hilton 13 4,720 8 Ibis Style 2 139
9 Dedeman 17 2,784 9 Ibis 13 2,003
10 Kaya Hotels 14 5,630 10 Dedeman 10 3,210
1 Dedeman Park 7 1,190 1 Ramada 56 8,319
Domestic Chain Groups Hotels Rooms Domestic Chain Brands Hotels Rooms 2 Divan City 1 162 2 Hilton Garden Inn 19 3,050
1 Rixos 26 8,721 1 Divan 14 2,520 3 Titanic City 1 183 3 Hilton Doubletree 17 2,732
2 Anemon 18 2,210 2 Dedeman 10 3,210 4 Radisson Blu 14 2,847
3 Divan 17 2,080 3 Titanic 9 2,615 5 Holiday Inn 14 2,097
4 Dedeman 17 2,784 4 The Marmara 8 2,080 6 Hilton 13 4,720
5 Kaya Hotels 14 5,630 5 Dedeman Park 7 1,190 7 Novotel 7 1,145
6 Crystal Hotels 13 4,554 6 Titanic Comfort 2 122 8 Four Points 3 436
7 Barut 12 3,716 7 Divan Express 2 220 9 Renaissance Hotel 3 760
8 Titanic 12 2,920 8 Divan City 1 162 10 Le Meridien 1 259
9 Larissa 10 1,630 9 Titanic City 1 183
10 The Marmara 7 1,191
1 Divan 14 2,520 1 The Luxury Collection 3 239
International Chain Groups Hotels Rooms International Chain Brands Hotels Rooms 2 Dedeman 10 3,210 2 Kempinski 3 720
1 Wyndham 75 10,953 1 Ramada 56 8,319 3 Titanic 9 2,615 3 Four Seasons 2 265
2 Hilton 63 12,674 2 Hilton Garden Inn 19 3,050 4 The Marmara 8 2,080 4 Raffles 1 185
3 Accor 42 7,453 3 DoubleTree by Hilton 17 2,732 5 Fairmont 1 209
4 Marriott 30 5,686 4 Holiday Inn 14 2,097 6 St Regis 1 118
5 IHG 27 5,026 5 Radisson Blu 14 2,847 7 Intercontinental 1 390
6 Radisson 13 2,590 6 Hampton by Hilton 13 1,619 8 Ritz Carlton 1 243
7 Sentido Hotels 12 3,300 7 Hilton 13 4,720 9 Conrad 1 553
8 Corendon Hotels & Resort 5 1,696 8 Ibis 13 2,003 10 Grand Hyatt 1 360
9 Club Med 4 1,750 9 Crowne Plaza 9 2,251
10 Choice Hotels 4 682 10 Mercure 9 1,938
Turkey: Ranking per Scale & Size Turkey: Ranking by Destination
Hotels Rooms % Avg Size Hotels Rooms Hotels Rooms 1 Antalya 883 1 Antalya 229,567
Budget & Economy 48 5,265 5% 18 31 2,015 17 3,250 2 Istanbul 745 2 Istanbul 71,893
Midscale 263 35,700 28% 23 122 18,300 141 17,400 3 Mugla 503 3 Mugla 63,236
Upscale & U.Upscale 306 43,820 32% 27 183 29,960 123 13,860 4 Izmir 269 4 Izmir 21,207
Luxury 325 93,000 35% 32 275 73,200 50 19,800 5 Ankara 212 5 Aydin 17,878
TOTAL 942 177,785 100% 25 611 123,475 331 54,310 6 Bursa 114 6 Ankara 16,187
7 Nevşehir 113 7 Mersin 9,859
8 Balıkesir 109 8 Bursa 8,967
Turkey: Business Model
9 Aydın 105 9 Afyonkarahisar 7,856
BY HOTELS 10 Çanakkale 95 10 Balıkesir 6,666
Economy - - - - 1 2% - - 1 -
Midscale 115 60% 1 17% 9 20% 9 64% 134 52% Turkey: Pipeline (2018/19) Turkey: Demand Driver
Luxury 4 2% - - 8 18% - - 12 5% Rank Destination Hotel Rooms DRIVER DOMESTIC INTERNATIONAL
TOTAL 193 100% 6 100% 45 100% 14 100% 258 100% Peninsula Hotels Rooms Hotels Rooms
1 Istanbul 180
Hotel
BY ROOMS Art & Business 17 4,005 14 3,298
Mandarin
2 Istanbul 120
Oriental Business Focus 3,541 327,845 247 23,465
3 Bodrum Four Seasons 125 Golf 16 4,320 1 274
Economy - 0% - 0% 81 1% - 0% 81 0% 4 Bodrum Banyan Tree 70
Ski 54 10,422 1 72
Midscale 16,378 51% 200 11% 1,144 13% 1,481 65% 19,203 42% 5 Bodrum Hilton Curio 85
Sun & Beach 606 83,689 28 3,867
Upscale & U.Upscale 15,204 47% 1,670 89% 5,981 66% 796 35% 23,651 52% 6 Bodrum Hyatt Centric 77
Thermal 109 14,007 8 1,028
Luxury 654 2% - 0% 1,865 21% - 0% 2,519 6% Swissotel
7 Bodrum 35
Resort Wine 5 215 - -
TOTAL 32,236 100% 1,870 100% 9,071 100% 2,277 100% 45,454 100%
8 Istanbul NG 400 Other Leisure 263 10,520 - -
9 Istanbul Four Points 440
250
253
240
222
200 209
Turkey: Ownership Assets Turkey: Institutional Owners 2018
187
159
Rank Name Domestic International Rank Name No. of Keys
150
150
143 1 KOC 14 3 1 Fiba Holdings 1,355
131
2 Akfen 15 1 2 Dogus Holding A S 653
120
100 107 3 Dogus 11 2 3 Halk Bank 546
97
89 4 Crystal 13 - 4 MV Holding 402
80 73
66
70 70 68 69 5 Dedeman 8 2 5 VakifBank 342
63
60
50
50 50 51 6 Titanic 6 3 Source: Real Capital Analytics, Inc. 2019
43 44 45 43
39 41 28 25 23
19 19 7 Greenpark 7 -
26 26
22
13 13 7
19 22 21 21 19 4
10
16 16
10
7
3 4 7
12
6
13 2 11 1 12 2 5 2 2 8 Limak 8 -
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United Kingdom
One of the largest deals of the year, Starwood Capital

brought their investment in the old Principal Hayley
group, to a close by selling the 13 hotels to French
company, Foncière des Régions (FDR) for £858m.

The UK market was very positive again in 2018, both •
No Brexit Blues for Transactions
from a performance point of view and investments. In The UK had one of the highest volumes of turnover
one of the largest deals of the year, Starwood Capital in the transaction market last year, with the top five
brought their investment in the old Principal Hayley group transactions alone bringing in £3.5 billion. This also
to a close, by selling the 13 hotels to French company included the purchase of Principal.
Foncière des Régions (FDR) for £858m. This also meant
that InterContinental Hotels Group who will manage the •
Owners
hotels now, were able to bring their recently acquired In terms of holdings, London & Regional is still top-
Kimpton brand to the UK. This makes IHG the second dog owning just over 9,000 keys, followed by ADIA
largest hotel company (by rooms) in the UK with 340 with 7,958 and Lone Star on 5,431. Even after their
properties and 49,311 rooms. Principal sale, Starwood Capital still owns 5,332 keys.
Total chain hotels 3,520 3,610 3% From a domestic brand perspective, the economy sector •
More coming
Total chain rooms 373,000 384,223 3% continues to perform well with Premier Inn clearly in front Looking at deal signing, the UK is near the top,
Average size per chain hotel in rooms 106 106 - with 801 hotels and 75,478 rooms, Travelodge came in 74 were signed last year for the UK. Chain groups
third with 551 hotels and 41,876 rooms. Whatever issues have 21 openings pencilled-in for this year and
Country hotels stock (overall supply) 33,374 33,464 -
the economy brands have growing their portfolio abroad, 17 the year after.
they seem to be having no such issues at home. Of the
Average size per hotel in rooms 23.6 24 1%
International brands, Accor is the largest with 257 hotels.
Chain penetration % by hotels 10.5% 10.8% 2%
Chain penetration % by rooms 47.4% 48.1% 2% We re-stated the overall number this year to be in line
Total number of brands 148 150 1% with the Visit UK and UNWTO data which meant that
Domestic brands 68 70 3% chain penetration is higher. The penetration for hotels is
almost 11% and rooms just over 48%. So a relatively low
3,610 International brands 80 80 -
penetration of hotels, 7 out of 22 markets, but a solid 15
Chain Top 10 Chains Total Hotels 2,523 2,621 4%
Hotels for rooms. The overall number of brands present, 150,
Top 10 Chains Total Rooms 278,908 290,118 4%
48% lags well behind German, Spain and France.
Chain Room 11% Top 10 Chains Hotels % 72% 73% 1%
penetration Chain Hotel Top 10 Chains Rooms % 75% 76% 1%
penetration James Chappell, Global Business Director
Horwath HTL Global
UK: Ranking by Size UK: Ranking by Scale UK: Hotel Investors 2018
CHAINS BRANDS OVERALL Rank Name Volume in €m
Rank Chain Groups Hotels Rooms Rank Chain Brands Hotels Rooms Rank Economy & Midscale Hotels Rooms 1 Covivio 950.6
1 Whitbread Group 801 75,478 1 Premier Inn Hotels 801 75,478 1 Premier Inn Hotels 801 75,478 2 LRC Europe 880.2
2 IHG 340 49,311 2 Travelodge 551 41,876 2 Travelodge 551 41,876 3 Vivion Capital Partners 854.7
3 Travelodge 551 41,876 3 Holiday Inn 136 20,529 3 Britannia hotels 54 10,221 4 Brookfield AM 446.5
4 Accor 257 34,832 4 Holiday Inn Express 141 17,411 4 Best Western 158 8,890 5 Cola Holdings 292.2
5 Hilton Worldwide 154 32,068 5 Hilton 54 14,215 5 Ibis 64 9,557 Source: Real Capital Analytics, Inc. 2019
6 Marriott International 98 19,286 6 Britannia hotels 54 10,221 6 Imperial London Hotel 7 3,379
7 Best Western 253 14,752 7 DoubleTree 53 10,188 7 Ibis budget 24 3,146
8 Carlson Rezidor 33 6,900 8 Ibis 64 9,557 8 Ibis Styles 27 3,269 UK: Institutional Owners 2018
9 Britannia hotels 54 10,221 9 Best Western 158 8,890 9 Old English Inns 70 1,924
10 Wyndham 72 5,407 10 Marriott 44 8490 10 EasyHotel 19 1,771
1 London + Regional 9,044
Domestic Chain Groups Hotels Rooms Domestic Chain Brands Hotels Rooms Rank Upscale & Upper Upscale Hotels Rooms
2 ADIA 7,958
1 Whitbread Group 801 75,478 1 Premier Inn Hotels 801 75,478 1 Holiday Inn 136 20,529
3 Lone Star 5,431
2 IHG 340 49,311 2 Travelodge 551 41,876 2 Holiday Inn Express 141 17,411
4 Starwood Capital 5,332
3 Travelodge 551 41,876 3 Holiday Inn 136 20,529 3 Hilton 54 14,215
5 Aprirose Investments 4,433
4 Accor 257 34,832 4 Holiday Inn Express 141 17,411 4 DoubleTree 53 10,188 Source: Real Capital Analytics, Inc. 2019
5 Britannia Hotels 54 10,221 5 Britannia hotels 54 10,221 5 Marriott 44 8,490
6 Jurys Inn 32 7,317 6 Jurys Inn 32 7,317 6 Mercure 91 9,685
7 Bespoke Hotels 76 5,432 7 Crowne Plaza 33 6,686 7 Wyndham 92 7,820
8 The Qhotel Group 26 3,682 8 BeFreind 46 3,715 8 Jurys Inn 32 7,317
9 Village Club Hotels 29 3,658 9 Qhotel 25 3,682 9 Park Plaza 22 7,196
10 Easy Hotels 19 3,300 10 Village Club Hotels 30 3,784 10 Crowne Plaza 33 6,686
Rank Luxury Hotels Rooms

250
253 1 MacDonald Hotels & Resorts 42 3,624
240
2 Preffered Hotels and Resorts 23 2,510
222
209
3 Principal 9 1,688
200
187
4 Sofitel 3 1,306
5 InterContinental 2 900
159
150
150 6 The Doyle Collection 4 742
143
131 7 Luxury Collection 3 733
120
100 107 8 SBE 3 713
97
89 9 Red Carnarion Hotels 10 664
80 73
66
70 70 68
63
69 10 Rosewood 3 590
60
50
50 50 51
43 44 45 43
39 41 28 25 23
19 19
26 26
22
13 13 7
16 19 22 21
7
21 19 7 4
16 3 4 6 12 5
10 10 12 13 2 11 1 2 2 2
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AFRICA EUROPE LATIN AMERICA
Ivory Coast Andorra Argentina
Rwanda Croatia Dominican Republic
South Africa Cyprus
France MIDDLE EAST
ASIA PACIFIC Germany UAE & Oman
Australia Greece
China Hungary NORTH AMERICA
Hong Kong Ireland Atlanta
India Italy Denver
Indonesia Netherlands Los Angeles
Japan Norway Miami
Malaysia Poland Montreal
New Zealand Portugal New York
Singapore Serbia Norfolk
Thailand Spain Orlando
Switzerland Toronto
Turkey
United Kingdom
www.horwathhtl.com
All RCA data based on independent reports of properties and portfolios Horwath HTL has made every effort to ensure that all data in this report
€5 million and greater. Data believed to be accurate but not guaranteed. is as accurate as possible at the time of publication, we cannot however
All data and statistics are the sole intellectual property of Real Capital guarantee that this is the case. All country figures from UNWTO.
Analytics, Inc. and no sale, transfer, sub-license, distribution or commercial
exploitation of the data is permitted without the express permission of RCA. All data as of full year 31 December 2018
Ownership data is compiled from RCA’s transaction database, which is com- Publication date: 4 March 2019
prehensive from 2007 onward. If an asset has not been traded, transferred Updated: 5 March 2019
or refinanced it may not be included. Ownership stats derived from traded
property data and do not take into account brand new developments or
properties that have never traded or traded pre-2007.

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European

Chains & Hotels

Welcome to Horwath HTL, the global leader in

Page 5 Forward Page 32 Albania

Page 7 Introduction Page 36 Croatia

Page 10 Chain Hotels & Brands Page 46 Denmark

Page 14 Year-on-Year Growth Page 50 France

Page 16 Supply Page 56 Germany

Page 18 Chain Hotels & Rooms Page 62 Greece

Page 22 International Capital Flows Page 68 Hungary

Page 24 Investment Page 74 Ireland

Page 26 Openings & Deal Signing Page 80 Italy

Page 28 Business Model Page 86 Montenegro

Page 102 Poland

Page 108 Portugal

Page 114 Serbia

Page 120 Slovenia

Page 126 Spain

Page 132 Sweden

Page 148 United Kingdom

Horwath HTL l European Hotels & Chains Report 2019 3

The report looks at the relationship

Horwath HTL l European Hotels & Chains Report 2019 5

For this latest edition, we have collected

Horwath HTL l European Hotels & Chains Report 2019 7

For the 12 markets where we have YoY

data, there has been a significant amount 150

of growth of Chain hotels in 2018. There

was a total of 686 new hotels, equating to

73,802 rooms, which is just over 4% growth.

Chain hotels: 3,610 Hungary

Chain hotels: 185 Croaa

Italy Greece Cyprus

Italy Greece Cyprus

Country Hotels Rooms Avg. Size

SPAIN CROATIA PORTUGAL SLOVENIA

Cyprus 236 56,245 238

France 18,079 652,698 36

Greece 9,874 425,993 43

20% 19% 19% Hungary 1,049 61,213 58

NORWAY TURKEY N’LANDS Ireland 834 60,222 72

SWEDEN HUNGARY DENMARK

Poland 2,592 136,080 53

14% 11% 11% Portugal 1,309 98,960 76

Spain 7,401 695,949 94

8% 8% 7% Sweden 2,045 124,000 61

GREECE M’NEGRO Switzerland 4,261 129,174 30

Turkey 4,910 487,027 30

766 Chain hotels 101,021

GERMANY FRANCE Tokyo

USA €346m €951m

USA €305m €880m

CANADA €454m €708m

Source: Real Capital Analytics, Inc. 2019

Germany 4,033 4,156 22,464 23,304 €179,510 €178,328 UK Vivion Capital

Poland 206 117 2,004 882 €102,936 €132,086 UK

Sweden 469 277 1,803 1,854 €260,388 €149,543 UK

Rank Company Units

2018 Price per key (€)

Chain hotels: 185 Croaa

Deals signed: 1 (0.26%) Croaa

Major countries of tourism origin remain UK, Russia, •