SPECIAL REPORT : HOTELS ’ 325
2012
CHINESE OPERATORS VAULT INTO THIS YEAR ’ S TOP 10 .
HIS YEAR ’ S HOTELS 325 RANKING is one for the history books , marking the first time a China-based company appears in the top 10 — and it isn ’ t just one .
Shanghai Jin Jiang International Hotels and Home Inns & Hotels Management , ranked ninth and 10th , respectively , have experienced explosive growth , vaulting from relative obscurity just a few years ago to their present lofty positions . Both have grown almost exclusively domestically , leaving them plenty of room to continue their rapid ascent .
More generally , 17 of the top 18 companies on this year ’ s list added inventory in 2011 , despite a significant slowing of new openings and projects as the predownturn cycle empties . Of course , much of the new inventory is coming from — where else ? — China , which boasts a massive pipeline of more than
200,000 guestrooms , according to STR . In all , 25 Chinese firms ranked in the top 300 this year .
Damien Little , a Singapore-based director at consultancy Horwath HTL , says the numbers are a reflection of the massive growth of China ’ s hotel industry over the last decade . While the international players have dominated upscale and luxury development across the country , it has been the domestic players that have focused on the budget sector .
“ The furious pace of growth of budget hotels is what has propelled these two companies ,” Little says . “ We should expect to see continued growth in the budget sector at a strong pace , and as such these two groups should continue to consolidate . Other budget groups such as China Lodging Group , 7 Days Group Holdings and GreenTree Inns Hotel Management Group Inc . will likely see some large growth in numbers . Consolidation in this sector could create a very large player .”
One of the biggest movers on this year ’ s list is Bangkok-based Minor International . Minor jumped 144 spots to 114th , more than doubling its inventory thanks in part to the takeover of Oaks Hotels & Resorts . Minor is also in the process of rolling out the Avani Hotels & Resorts brand , while its core Anantara Hotels , Resorts & Spas brand is aiming to more than double its footprint by 2015 .
The top 10 brands remain traditional names from the global powers . But that will almost certainly change next year , with Home Inns ( 11 ) poised to move into the top 10 , and it could conceivably climb as high as 7th in the 2013 ranking .
Clearly , the club of hotel industry giants is no longer the exclusive domain of European and American companies .
www . hotelsmag . com July / August 2012 HOTELS 23