Hotels & Motels in Europe: Industry Profile

INDUSTRY PROFILE
Hotels & Motels in

Europe
Reference Code: 0201-0520

Publication Date: October 2010
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EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Market value
The European hotels & motels industry shrank by 4% in 2009 to reach a value of $179.3 billion.
Market value forecast
In 2014, the European hotels & motels industry is forecast to have a value of $226.2 billion, an increase of
26.2% since 2009.
Market segmentation I
Domestic Consumer is the largest segment of the hotels & motels industry in Europe, accounting for
41.1% of the industry's total value.
Market segmentation II
Germany accounts for 19.1% of the European hotels & motels industry value.
Market rivalry
The hotels and motels industry’s performance has been negatively affected by the recent global economic
downturn and now, more than ever, most hoteliers are searching for demand generators and are relying
on direct sales to boost revenues and beat competition.

CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY 2
MARKET OVERVIEW 6
Market definition 6
Research highlights 7
Market analysis 8
MARKET VALUE 9
MARKET SEGMENTATION I 10
MARKET SEGMENTATION II 11
COMPETITIVE LANDSCAPE 12
LEADING COMPANIES 15
Accor 15
Choice Hotels International 19
InterContinental Hotels Group Plc 22
NH Hoteles SA 25
MARKET FORECASTS 29
Market value forecast 29
APPENDIX 30
Methodology 30
Industry associations 31
Related Datamonitor research 31
Disclaimer 32
ABOUT DATAMONITOR 33
Premium Reports 33
Summary Reports 33
Datamonitor consulting 33

CONTENTS
LIST OF TABLES
Table 1: Europe hotels & motels industry value: $ billion, 2005–09 9
Table 2: Europe hotels & motels industry segmentation I:% share, by value, 2009 10
Table 3: Europe hotels & motels industry segmentation II: % share, by value, 2009 11
Table 4: Accor: key facts 15
Table 5: Accor: key financials ($) 16
Table 6: Accor: key financials (€) 17

Table 7: Accor: key financial ratios 17
Table 8: Choice Hotels International: key facts 19
Table 9: Choice Hotels International: key financials ($) 20

Table 10: Choice Hotels International: key financial ratios 20
Table 11: InterContinental Hotels Group Plc: key facts 22
Table 12: InterContinental Hotels Group Plc: key financials ($) 23
Table 13: InterContinental Hotels Group Plc: key financial ratios 23
Table 14: NH Hoteles SA: key facts 25
Table 15: NH Hoteles SA: key financials ($) 26
Table 16: NH Hoteles SA: key financials (€) 26
Table 17: NH Hoteles SA: key financial ratios 27
Table 18: Europe hotels & motels industry value forecast: $ billion, 2009–14 29

CONTENTS
LIST OF FIGURES
Figure 1: Europe hotels & motels industry value: $ billion, 2005–09 9
Figure 2: Europe hotels & motels industry segmentation I:% share, by value, 2009 10
Figure 3: Europe hotels & motels industry segmentation II: % share, by value, 2009 11
Figure 4: Accor: revenues & profitability 18
Figure 5: Accor: assets & liabilities 18
Figure 6: Choice Hotels International: revenues & profitability 21

Figure 7: Choice Hotels International: assets & liabilities 21
Figure 8: InterContinental Hotels Group Plc: revenues & profitability 24
Figure 9: InterContinental Hotels Group Plc: assets & liabilities 24

Figure 10: NH Hoteles SA: revenues & profitability 27
Figure 11: NH Hoteles SA: assets & liabilities 28
Figure 12: Europe hotels & motels industry value forecast: $ billion, 2009–14 29

MARKET OVERVIEW
MARKET OVERVIEW
Market definition
The hotels & motels industry value consists of all revenues generated by hotels, motels and other
accommodation providers through the provision of accommodation and foodservice. The value does not
include any revenues generated through other interests, such as casinos, shops and telecommunication
services. The industry is segmented according to the origin of the revenues (domestic consumers,
domestic business and international business & consumers). Any currency conversions included within
this report have been calculated using constant 2009 annual average exchange rates.
For the purposes of this report, Europe consists of Western Europe and Eastern Europe.
Western Europe comprises Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain,
Sweden, and the United Kingdom.
Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.

MARKET OVERVIEW
Research highlights
The European hotels & motels industry had total revenue of $179.3 billion in 2009, representing a
compound annual growth rate (CAGR) of 1.2% for the period spanning 2005-2009.
The domestic consumer segment was the industry's most lucrative in 2009, with total revenue of $73.8
billion, equivalent to 41.1% of the industry's overall value.
The performance of the industry is forecast to accelerate, with an anticipated CAGR of 4.8% for the five-
year period 2009-2014, which is expected to drive the industry to a value of $226.2 billion by the end of
2014.

MARKET OVERVIEW
Market analysis
The European hotels & motels industry has been decelerating in recent years, suffering also a decline of -
4% in 2009. A marginal recovery is expected in 2010, with strong growth rates predicted over the years
up to and including 2014.
The European hotels & motels industry had total revenue of $179.3 billion in 2009, representing a
compound annual growth rate (CAGR) of 1.2% for the period spanning 2005-2009. In comparison, the
German industry declined with a compound annual rate of change (CARC) of -0.1%, and the UK industry
increased with a CAGR of 0.8%, over the same period, to reach respective values of $34.2 billion and
$30.8 billion in 2009.
The domestic consumer segment was the industry's most lucrative in 2009, with total revenue of $73.8
billion, equivalent to 41.1% of the industry's overall value. The international segment contributed revenue
of $58.6 billion in 2009, equating to 32.7% of the industry's aggregate value.
The performance of the industry is forecast to accelerate, with an anticipated CAGR of 4.8% for the five-
year period 2009-2014, which is expected to drive the industry to a value of $226.2 billion by the end of
2014. Comparatively, the German and UK industries will grow with CAGRs of 3.5% and 4.1%
respectively, over the same period, to reach respective values of $40.7 billion and $37.6 billion in 2014.

MARKET VALUE
MARKET VALUE
The European hotels & motels industry shrank by 4% in 2009 to reach a value of $179.3 billion.
The compound annual growth rate of the industry in the period 2005–09 was 1.2%.
Table 1: Europe hotels & motels industry value: $ billion, 2005–09
Year $ billion € billion % Growth

2005 170.8 122.8
2006 178.1 128.1 4.3%
2007 183.2 131.7 2.9%
2008 186.8 134.4 2.0%
2009 179.3 129.0 (4.0%)
CAGR: 2005–09 1.2%
Source: Datamonitor DATAMONITOR
Figure 1: Europe hotels & motels industry value: $ billion, 2005–09

MARKET SEGMENTATION I
MARKET SEGMENTATION I
Domestic Consumer is the largest segment of the hotels & motels industry in Europe, accounting for
41.1% of the industry's total value.
The international segment accounts for a further 32.7% of the industry.
Table 2: Europe hotels & motels industry segmentation I:% share, by value, 2009
Category % Share
Domestic Consumer 41.1%
International 32.7%
Domestic Business 26.2%
Total 100%
Figure 2: Europe hotels & motels industry segmentation I:% share, by value, 2009

MARKET SEGMENTATION II
MARKET SEGMENTATION II
Germany accounts for 19.1% of the European hotels & motels industry value.
France accounts for a further 17.4% of the European industry.
Table 3: Europe hotels & motels industry segmentation II: % share, by value, 2009
Category % Share
Germany 19.1%
France 17.4%
United Kingdom 17.2%
Italy 13.6%
Spain 12.4%
Rest of Europe 20.3%
Total 100%
Figure 3: Europe hotels & motels industry segmentation II: % share, by value, 2009

COMPETITIVE LANDSCAPE
The hotels & motels market will be analyzed taking hotel and motel operators as players. The key buyers
will be taken as consumers, and property owners, interior designers, and information and computer
technology manufacturers as the key suppliers.
The hotels and motels industry’s performance has been negatively affected by the recent global economic
downturn and now, more than ever, most hoteliers are searching for demand generators and are relying
on direct sales to boost revenues and beat competition.
Within the hotels and motels industry, where switching costs are rather negligible and competing on price
alone is no longer a key to success, brand recognition and innovation helps to attract first-time customers
and also repeat business. Suppliers include providers of various goods and services, as well as a
qualified workforce. Due to a high reliance on sophisticated technology and systems and the growing
importance of mobile communication channels, some suppliers may exert strong supplier power.
Globalization is an important key driver within the industry, with emerging markets offering significant
opportunities, but it also involves employing various business strategies and extra costs. Substitutes
include alternative forms of leisure accommodation. The presence of strong, international players,
coupled with decline in industry value in 2009, boosts the rivalry level.
Within the hotels & motels industry, which is both mature and very competitive, brand recognition is
important to attract consumers. Many of the major players also operate extensive franchise businesses
that make brand recognition particularly important. A strong brand image helps to attract first-time
customers and also to repeat business as switching costs are negligible in this industry. Buyers are
generally price sensitive, except in the premium market. Innovation is also vitally important in attracting
customers, as competing on price alone can be difficult. Operators try to tempt customers with new ideas,
such as capsule style hotels aimed at the mid-market consumer. In the premium segment, companies can
attract customers by better security and more facilities, such as spas, gyms and integrating hotels into
golf complexes. Some larger companies have begun to introduce loyalty schemes, by offering a points
system or air miles to regular customers, which reduces buyer power. As customers are numerous and
mostly small in size, their buyer power is reduced since the impact of losing one customer is not a
significant threat to business. Overall, buyer power is moderate.
Suppliers in this market are defined as property owners, developers and real estate companies, interior
design and furnishing companies, architects, management and training service providers, marketing
companies, industry consultants, and information and computer technology (ICT) manufacturers. Real
estate companies are often much smaller companies than hotel and motel operators and rather than
being globalized, they are usually local to the property they develop, which reduces their financial muscle
and ability to negotiate favorable contracts. Furthermore, hotels can integrate backwards and operate
their own real estate business. The quality and availability of supplier services and equipment is essential
to the hotel and motel industry. Hotel operators are reliant upon sophisticated technology and systems,
including technology utilized for property management, procurement and reservation systems.

Applications, databases and networks must integrate easily with each other and third-party systems to
facilitate collaborations with partners. The growing importance of the mobile channel is clear. The
technology platforms used by hospitality companies must support and enable all user interactions to
integrate in the future, from phones to fax machines to personal computers to personal digital assistants
(PDAs) to mobiles. This strengthens supplier power. The industry is also labor intensive. In a competitive
industry, sales people who take the time to understand clients’ needs can hold an advantage. Staff costs
are significant as success in the hotel industry is strongly influenced by the quality of the service provided.
Supplier power is assessed as moderate overall.
The hotels & motels industry is strongly influenced by travel and tourism trends. The situation within the
industry has changed significantly in recent years. The business used to be strong and the biggest
challenge was finding space to book. Now that it is a buyer’s market, most hotel sales people are faced
with the challenge of finding customers. The recent global economic downturn had an adverse effect on
the industry’s performance and now more than ever, most hoteliers are searching for demand generators
and are relying on direct sales to impact revenues and fill the significant void left by the ailing economy.
This may act as deterrent for newcomers; however, the growth forecast is positive, which may boost the
risk of new entrants in future.
It is possible to enter the industry in a relatively low-key way by opening a small, independent hotel or
motel as a sole proprietor. However, the industry is capital intensive, and for a large-scale entrance,
upfront investment in buildings, décor and furnishings, ICT infrastructure and staff is expensive. In a
highly competitive business, conducting operations using all the latest technology, as well as constantly
developing the tools and skills required, is essential (e.g. allowing travelers to check in to hotel rooms
remotely). The more demanding customer of the future will want to engage with a hotel across all touch
points (i.e. text, email, and social media) where appropriate. Hotels will need to capture and store more
data, yet access to it must be faster and more targeted in order to personalize the guest experience.
As tourism is not a vital consumer good, it will tend to be cyclical and travelers are increasingly expecting
bargain rates while refusing to tolerate lapses in quality and service. To sustain revenue growth in the
premium market, operating a chain of hotels is often an important strategy as it reduces dependence on
tourism in any particular location. However, in order to open an international chain of hotels, regulations in
terms of real estate and buying abroad need to be taken into consideration and can therefore be
restrictive in some countries. The purchase, leasing, and management of property may involve legal and
financial complexities, necessitating spending on professional services.
Globalization is an important key driver within the industry, with emerging markets, i.e. Russia, India and
China, offering significant opportunities, but it also involves employing various business strategies and
extra costs. For example, customers from China will search for, plan and book a hotel in a different way
from customers from Russia. The notion of brand integrity is crucial: hotels will need to supply consistent
service in a global environment, while adapting to support customers with new cultural background and
sensitivities in local markets.

Some companies have been able to develop a certain business model to avoid many of these extra costs;
however, a completely new entrant might not have sufficient scale economies to attempt this. Some
companies, such as Marriott, have developed business models involving third parties deal with its
property, which has allowed it to bring costs down. Overall, the likelihood of new entrants is moderate.
Substitutes to hotels and motels include alternative forms of leisure accommodation, such as camping
facilities or recreational vehicles, or informal accommodation with friends and family. Switching costs
range from negligible to high (e.g. the purchase price of a recreational vehicle). While all these substitutes
offer the same basic function of a place to stay, up-market hotels and motels often provide added
benefits, such as spas and restaurants. The threat of substitutes is assessed as moderate.
The industry includes several large hotel operators, such as Accor and InterContinental, with most of the
leading players operating several different branded chains. However, there are also a large number of
independents present in the industry. Many larger operators have diversified to some extent and own
additional businesses, such as casinos, restaurants and shops. To attract and sustain more business,
operators try to offer more and more complex packages and value-added services, such as free breakfast
and parking, free third night, etc. Recently, a rising popularity of lifestyle hotels amongst major chains can
be observed. Such hotels cater to the conscientious traveler's demands for eco-friendly practices, social
responsibility, and affordable style. The largest hotel and motel operators are fairly well insulated from
unpredictable market conditions by geographical diversification. However, others are based largely or
exclusively in one country. Exit barriers in the industry are fairly high because most of the major tangible
assets are highly specific to their industry, and thus harder to divest. This is a likely motivator for many of
the global leaders to pursue expansion through franchising and hotel management services, as well as
through the acquisition of properties. Many big chains have adopted an asset-light business model in
order to fuel expansion; selling off assets has allowed large competitors to raise capital and invest in
expanded operations, which again intensifies the competitive nature of the industry. In addition, the
declining industry value in 2009 forces players to fight fiercely over a limited share of revenues. However,
the industry is expected to recover and post good rates of growth in the forecast period, which may ease
the competition somewhat. Overall, rivalry in the industry is strong.

LEADING COMPANIES
LEADING COMPANIES
Accor
Table 4: Accor: key facts
Head office: 2 rue de la Mare Nueve, 91021 Evry Cedex, FRA

Telephone: 33 1 61 61 80 80
Fax: 33 1 61 61 79 00
Website: www.accor.com
Financial year-end: December
Ticker: AC
Stock exchange: Paris
Source: company website DATAMONITOR
Accor is a major global group operating in the hospitality, tourism and service business. The group
operates in 100 countries across the globe with Europe being the largest center for its operations.
Accor operates through three business divisions: hotels, services, and other business.
The hotel division of the group is organized under the Accor Hospitality name. Its hotel business has
presence in 90 countries, with nearly 4,111 hotels and 492,675 rooms. Accor offers 15 complementary
brands for different segments. It offers luxury hotels under the brand name Sofitel; mid-scale to upscale
hotels under the brand names Novotel, Pullman, Mercure, Suitehotel, and Adagio; economy hotels under
All Seasons and Ibis; and budget hotels under the brand names Motel 6, Etap and Formule 1 (now
hotelf1). As of December 2009, Accor operated 1,408 hotels in France, 901 in the rest of Europe, 1,076 in
North America, 180 in Latin America and Caribbean, and 565 in other countries. Out of these 4,111
hotels, 21% were franchised, 20% were owned, 20% were on fixed lease, 17% were on variable lease
and 22% were managed.
Federated under the name Accor Services, the service division of the company designs, develops and
manages value-added services for corporate and public institutions. The division offers a range of prepaid
services in the areas of employee and public benefits, including Ticket Restaurant, Ticket Alimentacion
and Ticket Childcare; rewards and loyalty like Accentiv, Ticket Kadeos, and Ticket Compliments; and
business expense management such as Ticket Car. Accor Services operates in 40 countries with
approximately 1.2 million affiliated service providers.
The group's other businesses include restaurants, casinos, and onboard train services.

LEADING COMPANIES
Accor offers a full range of gourmet dining activities through its subsidiary, Lenotre. The subsidiary is the
ambassador of French gourmet foods around the world with 16 boutiques in France and 17 outlets in
other countries. It also organizes special events and operates a number of restaurants. In all, it has 50
establishments in 10 countries.
Accor provides casino services through its 49% interest in Groupe Lucien Barriere, a major player in the
European gaming industry. It also offers onboard train services through its subsidiary, Compagnie des
Wagons-Lits. With operations in Austria, France, Italy, Portugal, Spain and the UK, the subsidiary delivers
a wide range of onboard food and hotels services on train networks. It also provides related services
designed to make traveling easier and more pleasant, as well as foodstuff management and procurement
services.
Key Metrics
The company recorded revenues of $9,824 million in the fiscal year ending December 2009, a decrease
of 8.7% compared to fiscal 2008. Its net loss was $368 million in fiscal 2009, compared to a net income of
$852 million in the preceding year.
Table 5: Accor: key financials ($)
$ million 2005 2006 2007 2008 2009

Revenues 9,922.7 10,577.6 11,292.3 10,761.2 9,824.0
Net income (loss) 506.1 742.5 1,268.1 852.4 (368.5)
Total assets 18,324.2 15,480.6 15,064.8 15,869.9 16,332.9
Total liabilities 12,343.6 9,782.2 9,932.4 11,274.3 12,165.6
Employees 168,623 170,417 172,695 158,162 150,000
Source: company filings DATAMONITOR

LEADING COMPANIES
Table 6: Accor: key financials (€)
€ million 2005 2006 2007 2008 2009

Revenues 7,136.0 7,607.0 8,121.0 7,739.0 7,065.0
Net income (loss) 364.0 534.0 912.0 613.0 (265.0)
Total assets 13,178.0 11,133.0 10,834.0 11,413.0 11,746.0
Table 7: Accor: key financial ratios
Ratio 2005 2006 2007 2008 2009

Profit margin 5.1% 7.0% 11.2% 7.9% (3.8%)
Revenue growth 8.1% 6.6% 6.8% (4.7%) (8.7%)
Asset growth 16.1% (15.5%) (2.7%) 5.3% 2.9%
Liabilities growth 8.9% (20.8%) 1.5% 13.5% 7.9%
Debt/asset ratio 67.4% 63.2% 65.9% 71.0% 74.5%
Return on assets 3.0% 4.4% 8.3% 5.5% (2.3%)
Revenue per employee $58,845 $62,069 $65,389 $68,039 $65,493
Profit per employee $3,002 $4,357 $7,343 $5,389 ($2,457)

LEADING COMPANIES
Figure 4: Accor: revenues & profitability
Figure 5: Accor: assets & liabilities

LEADING COMPANIES
Choice Hotels International
Table 8: Choice Hotels International: key facts
Head office: 10750 Columbia Pike, Sliver Spring, Maryland 20901, USA
Telephone: 1 301 592 5000
Website: www.choicehotels.com
Ticker: CHH
Stock exchange: New York
Choice Hotels International is a hotel franchiser operating more than 5,900 hotels, representing more than
479,000 rooms, in more than 30 countries and territories.
The company franchises lodging properties under a number of proprietary brand names, including:
Cambria Suites, Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn,
MainStay Suites and Flag Hotels. The company's franchises offer mid-priced, all-suite hotels and rooms
designed for senior travelers. Real-time bookings for suites can be made via the internet and the
telephone.
The hotels offer two levels of service: full-service hotels, which offer food and beverage services, meeting
rooms, room service and similar guest services; and limited-service hotels, which offer amenities such as
swimming pools, continental breakfast, or similar services.
Choice conducts its international franchise operations through a combination of direct franchising and
master franchising, which allow the use of its brands by third parties in foreign countries. The company
operates in Denmark, Norway, Sweden, Finland and Lithuania through the company's relationship with
Choice Hotels Scandinavia (CHS); as of December 2006, CHS has 145 open properties.
The company operates in Austria, Germany, Italy, the Czech Republic, Switzerland, France, Belgium,
Portugal and Spain through a master franchise agreement between Choice and Choice Hotels Europe
(CHE). In the UK, Canada and Ireland, the company operates 113 properties. In Canada, the company
operates through Choice Hotels Canada (CHC), a joint venture owned by the company and InnVest Real
Estate Investment Trust. CHC is one of the largest lodging organizations in Canada with 275 franchised
properties.

LEADING COMPANIES
In Australasia, the company conducts direct franchising operations in Australia, American Samoa, Fiji,
New Caledonia, Singapore, New Zealand and Papua New Guinea through a wholly owned subsidiary,
Choice Hotels Australasia (CHA). CHA operates 291 franchised properties under the Choice brands and
two franchised hotels under the Flag brand in Australia, American Samoa, New Zealand, New Caledonia
and Papua New Guinea.
Key Metrics
The company recorded revenues of $564 million in the fiscal year ending December 2009, a decrease of
12.1% compared to fiscal 2008. Its net income was $98 million in fiscal 2009, compared to a net income
of $100 million in the preceding year.
Table 9: Choice Hotels International: key financials ($)
$ million 2005 2006 2007 2008 2009

Revenues 477.4 544.6 615.5 641.7 564.2
Net income (loss) 87.6 112.8 111.3 100.2 98.3
Total assets 265.2 303.3 328.4 328.2 340.0
Total liabilities 432.4 365.7 485.4 465.9 454.2
Employees 1,728 1,860 1,816 1,789 1,560
Table 10: Choice Hotels International: key financial ratios
Ratio 2005 2006 2007 2008 2009

Profit margin 18.3% 20.7% 18.1% 15.6% 17.4%
Revenue growth 11.3% 14.1% 13.0% 4.3% (12.1%)
Asset growth 1.1% 14.4% 8.3% (0.1%) 3.6%
Liabilities growth (7.1%) (15.4%) 32.7% (4.0%) (2.5%)
Debt/asset ratio 163.0% 120.6% 147.8% 142.0% 133.6%
Return on assets 33.2% 39.7% 35.2% 30.5% 29.4%
Profit per employee $50,674 $60,638 $61,289 $56,009 $63,013

LEADING COMPANIES
Figure 6: Choice Hotels International: revenues & profitability
Figure 7: Choice Hotels International: assets & liabilities

LEADING COMPANIES
InterContinental Hotels Group Plc
Table 11: InterContinental Hotels Group Plc: key facts
Head office: Broadwater Park, Denham, Buckinghamshire, UB9 5HR, GBR

Telephone: 44 1895 512 000
Fax: 44 1895 512 101
Website: www.ihgplc.com
Ticker: IHG
Stock exchange: London
IHG is an owner, operator and franchisor of hotels and resorts. The group, through its subsidiaries owns,
manages, leases and franchises over 4,400 hotels with around 650,000 guest rooms in nearly 100
countries around the world.
IHG mainly operates in the UK, the US, Asia-Pacific, Europe, Africa and the Middle East. However, the
group reports its results as three geographic segments (Americas, EMEA and Asia-Pacific), which
together with Central functions, form the principal format by which management is organized and makes
operational decisions. All these segments are aligned along seven hotel brands: InterContinental Hotels
and Resorts, Crowne Plaza, Hotel Indigo, Holiday Inn, Holiday Inn Express, Staybridge Suites, and
Candlewood Suites.
Nearly 84% (3,500) of IHG's rooms worldwide are franchised, 14% (585) are operated under
management contracts; and 1% (16) is self owned. IHG supports revenue delivery into its hotels through
its global reservation system and global loyalty program (Priority Club Rewards), which is paid for by
assessments from each hotel in the group. The elements of the global system include: Priority Club
Rewards; the central reservation system technology; reservation call centers; and the internet.
The group's Priority Club Rewards offer members rewards, including free overnight stays in hotels,
frequent flyer miles for over 40 airlines worldwide, wines, store vouchers and special activities. It offers
club member benefits, gold member benefits and platinum member benefits. The central reservation
system technology includes the operations of the HolidexPlus reservation system. The HolidexPlus
system electronically receives reservation requests entered on terminals located at most of its reservation
centers, as well as from global distribution systems operated by a number of major corporations and
travel agents; and confirms such reservations.

LEADING COMPANIES
IHG generates room sales globally through its branded websites, such as www.intercontinental.com and
www.holiday-inn.com, as well as through third party distributors such as Travelocity, Travelocity Business,
Priceline, Orbitz, Lastminute.com, Zuji, Hotel.de and HRS.
Key Metrics
of 17% compared to fiscal 2008. Its net income was $294 million in fiscal 2009, compared to a net income
Table 12: InterContinental Hotels Group Plc: key financials ($)
$ million 2005 2006 2007 2008 2009

Revenues 1,910.0 960.0 1,771.0 1,854.0 1,538.0
Net income (loss) 515.0 405.0 463.0 262.0 294.0
Total assets 2,735.0 1,893.0 3,617.0 3,118.0 2,893.0
Employees 21,986 11,465 8,674 8,334 7,556
Table 13: InterContinental Hotels Group Plc: key financial ratios
Ratio 2005 2006 2007 2008 2009

Profit margin 27.0% 42.2% 26.1% 14.1% 19.1%
Revenue growth (13.3%) (49.7%) 84.5% 4.7% (17.0%)
Asset growth (41.5%) (30.8%) 91.1% (13.8%) (7.2%)
Liabilities growth (40.5%) (26.0%) 191.5% (11.4%) (12.2%)
Debt/asset ratio 59.6% 63.8% 97.3% 100.0% 94.6%
Return on assets 13.9% 17.5% 16.8% 7.8% 9.8%
Profit per employee $23,424 $35,325 $53,378 $31,437 $38,909

LEADING COMPANIES
Figure 8: InterContinental Hotels Group Plc: revenues & profitability
Figure 9: InterContinental Hotels Group Plc: assets & liabilities

LEADING COMPANIES
NH Hoteles SA
Table 14: NH Hoteles SA: key facts
Head office: Santa Engracia 120, Edificio Central, 28003 Madrid, ESP
Telephone: 34 91 451 9718
Fax: 34 91 451 9764
Website: www.nh-hotels.com
Ticker: NHH
Stock exchange: Barcelona
NH Hoteles is one of leading European business hotels. It currently has 349 hotels with 52,676 rooms in
22 countries in Europe, America and Africa. NH Hoteles has at present 54 new projects for hotels under
construction, which will provide more than 8,000 new rooms.
NH Hotels provides the TV interactive services in all its guestrooms: pay-per-view movies, video games,
messaging and information. Internet is also offered in the guestrooms. NH Hotels also has its own brand
'Agua de la Tierra' in its toiletry kits. This new line is based in Spain and the Mediterranean Sea.
NH Hotels has the 'Woman Style concept, which includes among other special features, rooms that are
specifically reserved for ladies. This service also includes specially designed accessories for women. The
company also has a new kit called 'Woman Style Agua de la Tierra', a specially designed concept for
women and consists of different products, such as body milk, and make-up remover.
The company also operates other concepts including: Elysium, Nhube, Fast Good and Nhow.
Elysium is the hallmark of NH and includes hydrotherapy centers, health and beauty, spas, massages,
muscle therapy and specific treatments. The company has Elysium centers in Sotogrande (Hotel
Almenara), Marbella (Hotel NH Alanda), Seville (Hotel NH Central Convenciones), and Madrid (Hotel NH
Eurobuilding). The company also has two new Elysium Travel Spa centers at Terminal 4 in Madrid-
Barajas International Airport.
Nhube is a multifunctional area found inside the NH hotels, created exclusively for the company by Ferran
Adria. The Nhube concept includes cuisine intermingled with rest areas, reading areas, internet access
points, music, and coffee.

LEADING COMPANIES
Fast Good is Ferran Adria's latest invention for NH Hoteles. This concept offers hamburgers, sandwiches,
baguettes and salads.
Nhow is the new category of NH hotels, created for avant-garde, sophisticated and international guests.
Nhow is the NH category where guests can eat, use the spa, have a business meeting or event.
Additionally, the company is engaged in the real estate development business.
Key Metrics
of 21.1% compared to fiscal 2008. Its net loss was $135 million in fiscal 2009, compared to a net income
Table 15: NH Hoteles SA: key financials ($)
$ million 2005 2006 2007 2008 2009

Revenues 1,369.2 1,517.0 2,093.7 2,130.8 1,682.2
Net income (loss) 86.5 86.8 107.6 37.3 (135.0)
Total assets 2,979.6 3,777.3 4,617.5 4,580.8 4,916.8
Employees 14,088 14,205 15,158 15,174 18,000
Table 16: NH Hoteles SA: key financials (€)
€ million 2005 2006 2007 2008 2009

Revenues 984.7 1,090.9 1,505.7 1,532.4 1,209.8
Net income (loss) 62.2 62.5 77.4 26.8 (97.1)
Total assets 2,142.8 2,716.5 3,320.7 3,294.3 3,536.0

LEADING COMPANIES
Table 17: NH Hoteles SA: key financial ratios
Ratio 2005 2006 2007 2008 2009

Profit margin 6.3% 5.7% 5.1% 1.7% (8.0%)
Revenue growth 3.2% 10.8% 38.0% 1.8% (21.1%)
Asset growth 17.7% 26.8% 22.2% (0.8%) 7.3%
Liabilities growth 37.2% 34.5% 17.5% 1.1% 7.1%
Debt/asset ratio 58.5% 62.0% 59.7% 60.8% 60.7%
Return on assets 3.1% 2.6% 2.6% 0.8% (2.8%)
Profit per employee $6,143 $6,113 $7,100 $2,456 ($7,501)
Figure 10: NH Hoteles SA: revenues & profitability

LEADING COMPANIES
Figure 11: NH Hoteles SA: assets & liabilities

MARKET FORECASTS
MARKET FORECASTS
Market value forecast
In 2014, the European hotels & motels industry is forecast to have a value of $226.2 billion, an increase of
26.2% since 2009.
The compound annual growth rate of the industry in the period 2009–14 is predicted to be 4.8%.
Table 18: Europe hotels & motels industry value forecast: $ billion, 2009–14
Year $ billion € billion % Growth

2009 179.3 129.0 (4.0%)
2010 180.1 129.5 0.5%
2011 187.5 134.8 4.1%
2012 199.7 143.6 6.5%
2013 212.9 153.1 6.6%
2014 226.2 162.7 6.3%
CAGR: 2009–14 4.8%
Figure 12: Europe hotels & motels industry value forecast: $ billion, 2009–14

APPENDIX
APPENDIX
Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated,
analyzed, cross-checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys
and supported by analysis from industry experts using highly complex modeling & forecasting tools,
Datamonitor’s in-house databases provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst
commentary, company profiles and macroeconomic & demographic information, which enable our
researchers to build an accurate market overview
Definitions – Market definitions are standardized to allow comparison from country to country. The
parameters of each definition are carefully reviewed at the start of the research process to ensure they
match the requirements of both the market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest
industry events and trends
Datamonitor aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
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- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative
and qualitative data to be combined with related macroeconomic and demographic drivers to create
market models and forecasts, which can then be refined according to specific competitive, regulatory
and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and
up-to-date

APPENDIX
Industry associations
European Hotel and Restaurant Association
111 Boulevard Anspach, Box 4, 1000 Brussels, Belgium
Tel.: 32 2 513 6323
Fax: 32 2 502 4173
www.hotrec.org
Related Datamonitor research
Industry Profile
Hotels & Motels in Australia
Hotels & Motels in China
Hotels & Motels in India
Hotels & Motels in Japan

APPENDIX
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INDUSTRY PROFILE

Hotels & Motels in

Reference Code: 0201-0520

Europe - Hotels & Motels 0201 - 0520 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 1

Europe - Hotels & Motels 0201 - 0520 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 2

Choice Hotels International 19

InterContinental Hotels Group Plc 22

Market value forecast 29

Related Datamonitor research 31

Europe - Hotels & Motels 0201 - 0520 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 3

Table 6: Accor: key financials (€) 17

Table 9: Choice Hotels International: key financials ($) 20

Europe - Hotels & Motels 0201 - 0520 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 4

Figure 6: Choice Hotels International: revenues & profitability 21

Figure 9: InterContinental Hotels Group Plc: assets & liabilities 24

Europe - Hotels & Motels 0201 - 0520 - 2009

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Europe - Hotels & Motels 0201 - 0520 - 2009

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Europe - Hotels & Motels 0201 - 0520 - 2009

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Europe - Hotels & Motels 0201 - 0520 - 2009

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Table 1: Europe hotels & motels industry value: $ billion, 2005–09

Year $ billion € billion % Growth

CAGR: 2005–09 1.2%

Source: Datamonitor DATAMONITOR

Figure 1: Europe hotels & motels industry value: $ billion, 2005–09

Source: Datamonitor DATAMONITOR

Europe - Hotels & Motels 0201 - 0520 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 9

Source: Datamonitor DATAMONITOR

Source: Datamonitor DATAMONITOR

Europe - Hotels & Motels 0201 - 0520 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 10

Source: Datamonitor DATAMONITOR

Source: Datamonitor DATAMONITOR

Europe - Hotels & Motels 0201 - 0520 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 11

Europe - Hotels & Motels 0201 - 0520 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 12

Europe - Hotels & Motels 0201 - 0520 - 2009

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Europe - Hotels & Motels 0201 - 0520 - 2009

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Table 4: Accor: key facts

Head office: 2 rue de la Mare Nueve, 91021 Evry Cedex, FRA

Source: company website DATAMONITOR

Europe - Hotels & Motels 0201 - 0520 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 15

Table 5: Accor: key financials ($)

$ million 2005 2006 2007 2008 2009

Source: company filings DATAMONITOR

Europe - Hotels & Motels 0201 - 0520 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 16

Table 6: Accor: key financials (€)

€ million 2005 2006 2007 2008 2009

Source: company filings DATAMONITOR