EDITOR ’ S DIARY
PASSION FOR HOSPITALITY
EDITORIAL Jeff Weinstein , Editor In Chief 1.312.274.2226 E-mail : jweinstein @ hotelsmag . com Barbara Bohn , Managing Editor 1.312.274.2209 E-mail : bbohn @ hotelsmag . com Chloe Riley , Associate Editor 1.312.274.2229 E-mail : criley @ hotelsmag . com Bert Ganzon , Senior Art Director 1.312.274.2227 E-mail : bganzon @ mtgmediagroup . com Steve Vanden Heuvel , Senior Art Director 1.312.274.2218 E-mail : svandenheuvel @ mtgmediagroup . com Brittney Hackbart , Associate Art Director 1.312.274.2216 E-mail : bhackbart @ mtgmediagroup . com Carolina Martinez , Freelance Design E-mail : cmartinez @ mtgmediagroup . com Bill McDowell , Vice President , Editorial Director 1.312.274.2201 bmcdowell @ mtgmediagroup . com
CONTRIBUTING EDITORS Oriana Lerner , Erin Sund
PUBLISHING David Wood , Publisher 1.312.274.2225 dwood @ hotelsmag . com
INTERNATIONAL ADVISORY BOARD Nakul Anand Executive Director , ITC Ltd ., Gurgaon , India Stephen Bartolin President , Broadmoor Sea Island Co ., Colorado Springs , Colorado Geoffrey Gelardi Managing Director , The Lanesborough , London Alex Kyriakidis President and Managing Director , Middle East and Africa , Marriott International , Dubai Christopher Nassetta President and CEO , Hilton Worldwide , McLean , Virginia Monika Nerger Chief Information Officer , Mandarin Oriental Hotel Group , Atlanta Paul Sistare President and CEO , Atlantica Hotels International , São Paulo Susan Terry Vice president of culinary and food and beverage operations , Marcus Hotels & Resorts , Milwaukee , Wisconsin
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RESILIENCE
Given all the geopolitical and economic upheaval of the past year or so , hoteliers should feel reassured by the current state of business – despite the emergence of disruptors and even more brands that threaten to further commoditize the business by confusing consumers . Perhaps the extended cycle and the industry ’ s apparently never-ending resilience is more of a testament to the still-emerging allure of global travel and tourism , but any way you want to slice it , the future appears quite bright .
Not that performance data is screaming “ victory ” as much today as it has been the past few years , but the U . S . is stable , Europe is , somewhat surprisingly , outperforming thus far into 2017 , and Asia seems to be absorbing growth quite nicely as it continues to export a lot of hospitality-related capital . Absent black swans , the outlook remains bullish for what is becoming an increasingly hardy industry .
M & A activity has slowed since the Marriott-Starwood merger , but with Chinese upstart HNA Hospitality acquiring Carlson Rezidor to match its 25 % stake in Hilton , 30 % share of NH Hotels and 15 % of RLHC , it reminds us that new tigers can and will make headlines and are worth watching . Despite greater internal scrutiny being paid to lending practices , many more of the new darlings from China are emerging as aggressive acquirers , which brings me to this month ’ s Special Report – HOTELS 46th annual ranking of the hotel industry ’ s giants ( p21 ).
While the newly constituted Marriott
International becomes the first hotel company to push beyond 1 million rooms , what remains particularly exciting to watch is the emergence
Editor In Chief of China-based giants , some of whom had already existed but which we had not discovered until now . Enter the likes of Qingdao Sunmei Group , Dossen International and Country Garden Phoenix International . Groups like this – some with more international aspirations – continue to climb our 300 ranking and add increasing global color to the list .
Groups such as SBE Entertainment , with its acquisition of Morgans , makes its 325 entry this year . Mergers like that of Commune and Destination Hotels gives us more to ponder , leaving us to imagine what ’ s next and whether consolidation further opens the door for staunch independents and their “ smaller is better ” message .
Will Chinese players continue to seek serious portfolios , or is a pullback in order ? Will we see something anywhere near as big as the Marriott-Starwood deal – maybe a big deal from Hyatt ? Will Marriott sell off a brand like Sheraton ? The possibilities are endless and speak to the health of the industry , and we can ’ t wait to write the next set of exciting , often unexpected , headlines .
July-August 2017 hotelsmag . com 7