European Chains & Hotels Report 2019

We are pleased to release the 2019 edition of our European Chains & Hotels Report, which is compiled in conjunction with Crowe’s European hotel tourism and leisure consultants Horwath HTL. The report looks at the relationship between hotel chains, their myriad of brands and the hospitality and lodging industry across Europe.

The report provides a valuable insight into the growth and expansion of branded hotels and groups both in Ireland and across Europe. We look at the changes in the number of chains and their brands from the previous year, which highlights this evolving marketplace.

 

The 2019 European Chains & Hotels Report is a comprehensive look at a vibrant hotel market across 22 European countries, including Ireland. The report includes detailed information about business models, transaction and investment numbers as well as the number of hotel deals being signed. It adopts a standardise methodology to KPI’s across all countries.

 

The report examines the two big stories in the hotel industry over the last 25 years, which are the inexorable growth and expansion of branded hotels and the change in the model for owning and operating hotels.

Every year sees the creation and introduction of more and more brands, both international and domestic, as a way to drive market share through identity, segmentation and increasing scale. The Irish hotel sector is no exception and in 2018 there was a 4% increase in the number of chain hotel rooms. We expect the trend to continue in 2019 and beyond as many chains look to enter the market including new offerings by Hilton, Hyatt and Marriott International.

 

Across Europe 52% of branded hotels operate under a franchise model, with 24% owner operated, 17% managed and 7% leased. The experience in Ireland is somewhat different, with a higher level of owner managed hotels. However, there are growing opportunities for franchise structures. At Crowe we work with developers and funders in critically assessing the operating options for hotel developments to maximise the return on investment.

 

Dublin accounts for the largest number of chain hotels in Ireland with 68 hotels (13,123 rooms), an increase of 5% on last year. Galway is in second spot with 16 hotels (1,706 rooms), followed by Cork.

 

Overall the outlook for 2019 for the Irish hotel sector remains encouraging with positive domestic and international economic indicators. As a result of these positive conditions we anticipate growth in the pipeline of new hotel projects (extensions and new hotels) entering the Dublin market giving opportunities for both branded and unbranded properties.

Crowe’s multi-disciplinary team serving the hotel, tourism and leisure sector comprises experienced accountants and hospitality consultants, with practical industry expertise. Our mix of strategic and functional skills and knowledge allows us to provide both innovative and workable business solutions.

 

We are members of Horwath HTL (Hotel Tourism and Leisure), the world’s number one hotel, tourism and leisure consulting organisation. The Horwath HTL network comprises of over 50 offices in 39 countries and provides solutions through a combination of international experience and expert local knowledge.

 

If you would like to find out more about how we can support your hotel or hospitality project contact Mairea Doyle Balfe or a member of our dedicated hotel, tourism and leisure team.