Hotel and tourism market experinces continued growth due to mergers and new trends

MIPIM 2016 (Copyright: Archus Arkitekter) 

NEW YORK - 2015 was a boom year for the hospitality market due to two key emerging trends in the hospitality market: hotel mergers and acquisitions and the rise of “lifestyle” hotels and retailtainment. MIPIM 2016 will feature key players speaking on their expertise on the hotel and tourism market space.

“For the hotel and tourism sector, 2015 has been a year of movers and shakers. To see such a surge in major hotel players signing up to MIPIM, reflects the hive of activity that hotel and tourism investment has become. It is now important for these groups to have a presence at MIPIM to secure those key investors from around the globe,” says Julien Sausset, Director of MIPIM.

2015 recorded around 20bn euros of hotel investments transacted in Europe (source: CBRE) and saw two epic mergers: the Marriott Starwood merger in November which created the world’s biggest hotel company and Accor Hotels’ acquisition of FRHI, giving it the Fairmont, Raffles and Swissotel brands. In addition to hotel mergers, another significant trend in the hospitality/tourism industry has been the introduction Sof lifestyle hotels as key players in the market. Speaking recently, Tim Walton, Vice-President of International Hotel Development at Marriott, claimed: “Without exception, all our brands introduced over the last five years have been in the lifestyle space.”

So far, the MIPIM 2016 conference programme has two key sessions dedicated to hotel & tourism. The first, entitled “How can major hotel companies maintain their fast pace of growth in an increasingly competitive market with new offensive players?” will discuss the recent hotel mergers and acquisitions. “The topic that will be most widely discussed at MIPIM this year is whether or not the consolidation trend that started amongst brands and operators in 2015 will continue in 2016, and if this is the correct response to the threat posed by the new digital disruptors that are challenging the conventional hotel model,” explains Arthur De Haast, Chairman, Hotels & Hospitality Group and Lead Director ICG at Jones Lang LaSalle (JLL), who will be moderating this session.

How can a hotel differentiate itself from the next one thanks to remarkable facilities such as exhibition spaces, social connected zones, technology corners, multimedia stations, eclectic decor, spectacular terrace/rooftop or renowned restaurant? What are the costs and benefits of an innovative space configuration and creative design? Can it boost hotel performances? These questions, amongst others, will be treated in a hotel & tourism workshop entitled: “Rise of lifestyle hotels & retailtainment in the hospitality industry, what’s in hotels for the client experience?” This “lifestyle hotel” trend will be represented by some of the new exhibitors in the hotel and tourism pavilion including Fashion TV, who opened their first fashion themed hotel in 2014 in Bali. A number of “lifestyle hotel” real estate projects will also be presented at MIPIM this year, including The Winery Hotel (pictured), the world’s first combined urban winery and boutique hotel, which has just opened this month in Stockholm. Featuring its own in-house wine production, it offers a fresh take on accommodation, meeting and dining – with a love of fine wine at its heart.

Organised by Reed MIDEM, a subsidiary of Reed Exhibitions, MIPIM will take place in Cannes from March 15-18, 2016. Hotel and tourism is becoming one of MIPIM’s fastest-growing sectors and for its 2016 edition, the global property market will see an unprecedented lineup of top hotel groups attending. Starwood Hotels & Resorts will be making its MIPIM debut this year alongside fellow newcomers the Rezidor Hotel Group (Radisson) and Louvre Hotels Group. They will join Accor Hotels, Club Med, IHG Intercontinental Hotels Group, Hyatt, Easyhotel, Meininger Group and a host of other hotel players in the 800m² hotel & tourism pavilion - making it MIPIM’s largest hotel and tourism presence to date.

The positioning of tourism at MIPIM is also gaining strong momentum with Brazil, the Philippines and Indonesia all having their respective ministries of tourism represented in the hotel & tourism pavilion to discuss investment opportunities in the three countries. MINTUR - the Brazilian Ministry of Tourism - will also be sponsoring an open buffet lunch which will take place following an open-door hotel and tourism networking event (Wednesday 16 March at 11h30).