Analysis of the hotel industry in recent years revealed consolidation of the sector on a worldwide level. Key players have acquired a number of smaller, yet prominent, hotel companies in order to expand their global footprint, diversify their brand offering, and penetrate new markets.
Marriott has been a key driver of consolidation within the hotel industry. Its acquisition of Starwood Hotels and Resorts in 2016 at an estimated cost of USD 13 billion positioned the group as the largest chain in the hotel industry. Approximately 30 brands now fall under the Marriott umbrella. Within the African hotel industry, Marriott’s largest acquisition was Protea Hotels, which saw the company significantly increase its presence across the African continent, notably in the sub-Saharan region.
The French hotel group Accor is also a prominent player in the hotel industry and has been actively acquiring new companies in 2016 and 2017. One of the more notable transactions for the group was the acquisition of Fairmont Raffles Hotels International (FRHI) at USD 2,7 billion in 2016. An investment in Banyan Tree in December 2016, as well as the formation of a strategic partnership with the company, has enabled this hotel giant to expand its presence in the high-end hotel market.
Other key transactions in the industry were driven by HNA Hotels & Resorts. In 2014, HNA became the largest shareholder in the NH Hotel Group, a Spanish hotel group with a global footprint. In 2016, HNA announced its acquisition of Carlson Hotels and its acquisition of a 51,3% stake in Brussels-based Rezidor Hotel Group.
The consolidation of the hotel industry shows the growing power of Chinese hotel companies and the continued expansion of hotel industry giants like Accor and Marriott. Industry experts indicate that Marriott, HNA, and Accor are likely to continue to drive consolidation in the sector going forward.