This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Inaugural Luxury Hotel Index Shows U.S. Still Leads in Hospitality Brands

Stocks in this article: MAR

The study separates the luxury-hotel market worldwide into three tiers:

Luxury major: This includes luxury brands of a major integrated chain such as Sofitel, Ritz-Carlton and JW Marriott. It's the fastest-growing category of luxury hotels, according to the study, showing 12.1% growth since the first quarter of 2012.

Luxury exclusive: These are luxury brands of a small/medium size and include exclusive luxury chains such as Four Seasons, Mandarin Oriental and Kempinski.

Upper upscale: This category is primarily integrated chains such as Hilton and Sheraton. It's the most popular category, capturing three-quarters of total global interest.

Hilton is by far the leader in many ways, according to the study. It's the No. 1 Upper Upscale Chain hotel brand, snagging 22.8% of global demand in its category. It also ranks first in four out of 10 markets studied -- Italy, Germany, United Kingdom and the United States.

The reason Hilton is such a strong market force, according to the study, is strong brand awareness and brand recall, giving it a distinct competitive edge.

Among the Luxury Exclusive category, Four Seasons is the clear leader. The Four Seasons benefits from an outstanding level of online awareness, according to Florent Bondoux, head of strategy and intelligence for Digital Luxury Group.

Meanwhile Ritz-Carlton is the top Luxury Major brand in the world, capturing 4.6% of global demand for luxury hotel rooms in its category. It is most popular in Japan. Ritz has become a leading hotel luxury brand because of what the report calls rigorously developed and implemented standards. One such policy cited is Ritz Carlton's allowing its employees to spend up to $2,000 to respond to guest's wishes to make any single guest satisfied.

Bondoux said all three hotel chains have several advantages that keep them in their top spots

"They all have a wide presence worldwide (30 to 80 countries) and thus benefit from strong brand recognition globally," Bondoux says. "They are innovators in their field and able to craft bespoke experiences for their clients -- both leisure and business travelers. Finally, successful luxury hotel brands significantly rely on digital communication and technology to further grow. It's estimated that the Four Seasons invested $18 million to reinforce its brand's online presence."

Also worth noting: Jumeirah Hotels & Resorts is the fastest-growing luxury group of hotels -- with a 14.8% growth since 2012. In 2012, Jumeirah launched five hotels across Europe and the United Arab Emirates. The group now operates 20 luxury hotels in nine countries. During the past 18 months, the group has doubled its portfolio and has another 16 properties under construction, according to the study.

New York remains the top destination among luxury hospitality destinations worldwide, while London, Dubai and Paris are the fastest-growing international destinations.

"If you look at Paris and London now, they benefit from having iconic names, especially among Asians," Sadigh says. "There is a huge level of Chinese, and Asians in general, traveling out of China and going to Paris and London, to a point where if you look at the sales of the duty-free shopping in Paris and London, some estimates are that 50% of sales of those global boutiques is from Asian customers. China is huge opportunity, and we can expect Asian growth to remain steady."

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs