World’s Most Popular Luxury Hotel Brands For 2015

A new study by Luxury Branding, a London-based consultancy that specializes in the global luxury market, reveals a fresh and unexpected ranking of the most popular high-end hotels and resorts worldwide for 2015. Surprising highlights, based on independent analysis of 2.25 million travellers’ reviews, include:

The Ritz-Carlton, owned by hotel giant Marriott International, takes top honors by a substantial margin—particularly impressive given its large network of nearly 90 properties and nearly 40,000 employees worldwide
“Traditional” luxury marks, including Oberoi Hotels & Resorts, Raffles Hotels & Resorts and Shangri-La Hotels and Resorts, dominate the Top 10. These classic, high-end brands generally outrank less conservative luxury brands such as Firmdale, EDITION and Andaz. So-called luxury “lifestyle” brands, including Morgans Hotel Group and W Hotels Worldwide, fare considerably worse by missing out on the Top 50 entirely
Some of the industry’s most established and best-known names fail to make the Top 10, including Four Seasons Hotels and Resorts (13), The Peninsula Hotels (20), St. Regis (26) and Waldorf Astoria Hotels & Resorts (50)
Luxury Branding’s study is based on its independent analysis of more than 2.25 million public reviews on TripAdvisor, the world’s largest travel feedback site with 375 million unique monthly visitors ranking more than 950,000 hotels and lodgings around the world. The study, which provides a “snapshot” of the entire body of reviews posted up to and including 14 August 2015, represents one of the largest luxury study samples ever analyzed in the hospitality industry. While TripAdvisor graciously allowed Luxury Branding to analyze its publicly available data, the study is not affiliated with, or endorsed by, TripAdvisor
Social media and internet outlets continue to revolutionize the role of consumers in shaping brand perceptions, even at the higher end of the luxury spectrum. Piers Schmidt, Luxury Branding’s founder, said: “The luxury hotel sector, which traditionally has been ranked by industry organizations, travel operators and specialty publications, is becoming democratized by the advent of TripAdvisor and similar portals that allow consumers to act as vocal, real-time critics, champions and commentators.”

Mr. Schmidt noted that despite a persistent industry perception that high-net-worth consumers “don’t write reviews” or engage with social media, digitally native travelers rely both on their own experiences and those of friends and family in making brand decisions. Luxury brand operators that embrace the trend of peer-to-peer reviews and respond thoughtfully and consistently, rather than impulsively, can build greater brand loyalty and transparency among today’s connected and ever more demanding luxury clients.

The Top 10

The World’s Most Popular Luxury Hotel Brands, 2015 are:

The Ritz-Carlton
Oberoi Hotels & Resorts
Raffles Hotel & Resorts
Langham Hotels and Resorts
Rocco Forte Hotels
Dorchester Collection
Capella Hotels and Resorts
Park Hyatt
Shangri-La Hotels and Resorts
Armani Hotels & Resorts

The full Luxury Branding report, which ranks and analyzes the Top 59 Most Popular Luxury Hotel Brands, may be downloaded by visiting www.luxury-branding.com. The report includes background on methodology; select brand analysis; and a discussion of the importance of social media/online consumer reviews to the luxury sector as a whole.

SINGAPORE: Accor Acquires Iconic Hotel Brands

Accor Hotels announced, Wednesday, it has signed an agreement with Qatar Investment Authority, Kingdom Holding Company of Saudi Arabia and Oxford Properties, an Ontario Municipal Employees Retirement System for the acquisition of FRHI Holdings Ltd, parent of Fairmont, Raffles and Swissôtel.

“This is an outstanding opportunity to add three prestigious brands – Fairmont, Raffles and Swissôtel – to our portfolio… It offers us global leadership in luxury hotels,” said Accor Hotels chairman and chief executive officer, Sébastien Bazin.

“The transaction will also enable the group to consolidate its shareholder base, with the arrival of two high-profile investors that both have extensive expertise in the hospitality industry.”

His Excellency Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani, CEO of Qatar Investment Authority, said: “Since making our investment, Fairmont Raffles Hotels International has become a leading luxury hotel company with an expanded international presence. This deal generates the scale needed to drive the next phase of growth in our real estate and hospitality investments. QIA has confidence in AccorHotels and looks forward to becoming a significant shareholder.”

FRHI includes three luxury hotel brands: Raffles, Fairmont and Swissôtel.

It has 155 hotels and resorts (40 under development), and more than 56,000 rooms (13,000 under development).

Its portfolio includes such legendary properties as Raffles Singapore, The Savoy in London, Shanghai’s Fairmont Peace Hotel, The Plaza Hotel in New York, Le Royal Monceau – Raffles Paris, Fairmont San Francisco, Fairmont Banff Springs (Canada), Fairmont Le Château Frontenac in Quebec, the Fairmont Grand Del Mar in San Diego, and Swissôtel The Stamford in Singapore. FRHI has more than 45,000 employees under its brands.

FRHI’s hotels and resorts span 34 countries across five continents, with 42 properties in North America, two in South America, 26 in Europe, 17 in Africa/Middle East and 28 in Asia-Pacific. They are located in the world’s major tourist destinations, particularly in the United States. The vast majority of hotels (108) are operated under very long-term management contracts, with average remaining terms of nearly 30 years; six hotels are leased and one hotel is owned.

The integration of Raffles, Fairmont and Swissôtel should broaden the group’s geographic footprint in the luxury segment.

It already has close to 500 luxury and upscale properties.

AccorHotels aims to generate around €65 million in revenue and cost synergies due to the combination of brands.

The transaction will be accretive on earnings per share from the second year, with synergies fully effective by the third year.

The agreement with Qatar Investment Authority and Kingdom Holding Company of Saudi Arabia provides for the cash payment of USD840 million (€768 million at the current exchange rate) and the issuance of 46.7 million Accor shares.

These shares will be issued via a reserved capital increase, subject to the approval of shareholders at an Extraordinary Shareholders’ Meeting. The transaction will leave QIA and KHC respective stakes of 10.5% and 5.8% in Accor’s share capital. Two representatives of QIA and one representative of KHC will be appointed to the Accor Board of Directors.*

This transaction is subject to the regulatory approvals of the antitrust authorities.

Accor Hotels has 3,800 resorts and hotels in 92 countries.