Hotel Supply to Stagnate in 2009

The current global economic crisis is expected to have an affect on overall hotel supply, as many projects are put on hold or cancelled altogether. Hotel performance indicators and the hospitality industry fighting back the global economic crisis in 2009 are the main topics of discussion at this year’s Global Lodging Forum, held at Four Seasons George V Paris, March 5 and 6.

Even before the crisis occurred, Spanish group NH Hotels pulled back on their three year expansion plan, which included the opening of 18,000 rooms between 2007 and 2009. Having reached the halfway point to this goal, the group will momentarily limit its development to management and leasing agreements, two formulas that implicate no financial investment by the group.

Sol Melia also adapted its strategic plan for 2008-2010, limiting investment in the growth of its brands to 100 million euro rather than the 200 originally planned.

Accor has been no exception. While its vast global development program for 200,000 new rooms has not been abolished, it has been postponed to 2011 and not 2010 as originally planned. Throughout 2008, the French-based group also continued to reorganize its supply in an effort to establish the best positioning for its hotels.

IHG, the number one group worldwide, strengthen its ranking as number two in Europe, at the expense of Best Western. Express by Holiday Inn continued to be a driving force in the economy category, whilst in the upscale segment, Crowne Plaza is undergoing expansion across Europe, the Middle East and Africa (EMEA).

Following an intense reorganization phase linked to the takeover of Starwood Capital, Louvre Hotels is leaping into the future, unveiling new concepts for Kyriad and Premiere Classe, as well as the pursuit of Campanile’s vast renovation plan. With more than 100 hotels and 22,000 rooms under development, Rezidor has one of the largest growth plans in EMEA. In terms of supply, this will bring the group very close to leaders Accor and IHG.