Latest research from OC&C Strategy Consultants’ Global Hotel Index has just revealed the top 10 players with the best performing revenue per available room (RevPAR) growth from 2012 to 2015.Â The Hong Kong & Shanghai Hotels group, which is the parent company of The Peninsula Hotels, The Peak and The Repulse Bay, topped the list with a strong 4.3% RevPAR growth performance compared to the market, whereas China’s Jin Jiang Hotels ranked second, growing RevPAR 3.7% more than the market per year.
The indexÂ analysed the financial performance on room stays of 25 of the worldâ€™s leading hotel groups between 2012 and 2015, including the likes of Marriott International, Hilton Worldwide, and InterContinental. Read the ranking list below:
Top 10 players (market adjusted Revenue Per Available Room growth) in 2012 â€“ 2015 (% RevPAR growth out-performance compare to market)
1. The Hong Kong & Shanghai Hotels (4.3%)
2. Jin Jiang Hotels (3.7%)
3. PPHE Hotel Group (3.3%)
4. Motel One (2.9%)
5. Melia Hotels International (2.7%)
6. Las Vegas Sands (2.4%)
7. Tsogo Sun (1.9%)
8. MGM Resorts International (1.5%)
9. Extended Stay Hotels Group (1.5%)
10. InterContinental Hotels Group (1.0%)
According to the research, the hotel market in Europe and the Americas has bounced back from the financial crisis in the past four years, with RevPAR growing by 5.6% and 6.3% respectively. Top hotel groups have been performing strongly as a result with RevPAR growing by 4.3% annually. The Asia Pacific region, however, has slowed down, with average revenue per room decreasing by 2.3% year-on-year.
Rambaut Fairley, partner at OC&C Strategy Consultants, said the top 25Â in the Global Hotels Index have performed strongly overall, but the success had largely been driven by market forces. “Only a few hotels are managing to drive growth in revenue and profit ahead of their peers, and in fact, more than half of the top 25 have actually under-performed their markets. Hotel rooms are in oversupply, and as a result, driving growth through increased occupancy is incredibly difficult.”
He said several players, including 2016’s top two winners, managed to out-perform their peers onÂ average room rate by investing in their brand, renovating hotels, improving room technology and enhancing customer experience, and the investment in brand proposition and customer experience had been reflected in their strong revenue growth.