Strong performances in Asia Pacific, North and Latin America ensured growth of 5% in hotel sales in 2014, despite issues in Western and Eastern Europe. Major hotels had a strong year, as they kept innovating. The past year has seen the continuing rise of peer-to-peer sites, the ongoing increase in Chinese tourists, and millennial travellers taking centre stage. Global hotel chains are aiming to benefit from technological innovations and the introduction of lifestyle, soft and boutique brands.
In 2014, the global hotel industry achieved its fifth consecutive year of growth, with sales of US$512 billion.
The global hotel industry saw significant dynamism in 2014. IHG acquired boutique chain Kimpton Hotels, Hilton launched its Curio and Canopy brands, Marriott pursued millennial travellers through social media and its own production studio, while rumours around a Starwood takeover gripped the industry.
Peer-to-peer goes from strength to strength. Awareness of private rental platforms is growing, meaning companies like Airbnb and HomeAway are starting to impact the bottom line of hotels.
Chinese tourists are the honey pot of the industry, with strong growth in travellers expected in the coming years. Although the Chinese currently have limited spend on lodging, this is expected to increase in the coming decade, as disposable incomes rise.
Global hotels are reaching out to the millennial generation by embracing mobile technology, as well as implementing new technological innovations in the design of their brands.
While 2015 is expected to see slow growth, due to economic and geopolitical worries in a number of regions, growth is expected in each year to 2019. This will be driven by increased tourism flows and higher spending.
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