DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/htsxps/the_global_budget) has announced the addition of the "The Global Budget Hotels Market to 2018" report to their offering.
The budget hotels category is set for growth over the forecast period (2014-2018) due to demand for affordable lodging products, with rising middle-class populations in Asia-Pacific and Africa driving demand. Investor interest in this particular category increased as budget hotels proved to be less susceptible than luxury hotels to the global financial crisis.
Several leading international luxury hotel chains have set up economy brands to focus exclusively on budget hotels category. Marriott International introduced its economy Moxy Hotels brand in Europe in 2013. Accor Hotels has two budget hotel brands: Ibis Budget and hotelF1 (previously Formule 1). Lemon Tree Hotels operates the Red Fox budget brand in India.
Local budget and midscale hotel brands are expanding their presence into Tier II and Tier III cities such as Chennai and Surat in India, and Nanjing and Zhenzhou in China. International brands are increasingly marking their presence in these emerging markets, attracted by their lucrative potential. For example, UK-based budget hotel operator Premier Inn is active in India, while InterContinental Hotels Group's Holiday Inn Express and Holiday Inn Hotels & Resorts, and Wyndham Hotel Group's Super 8 are active in China.
The US is the largest global market for budget hotels, with revenues totaling US$12.4 billion in 2013. However, the budget category's share of the hotel industry is low in comparison to developed European economies such as the UK and France, and Latin American economies such as Brazil, Argentina and Peru. In terms of revenue, the category's penetration in the US stood at 7.6% in 2013.
The Asia-Pacific's budget hotels category registered strong growth during the review period. The category is becoming more standardized, and levels of consistency in the final product have risen. Branded hotel chains are strong in this area and are able to garner large market shares.
Europe is a key market for budget hotels: Premier Inn, Travelodge, Ibis, hotelF1, Motel One, and easy Hotel all have a presence. Many European economies were adversely affected by the financial and eurozone debt crisis. Consequently, disposable consumer incomes fell, leading to a fall in the number of trips and a rise in demand for cheaper accommodation. This has been a key driver of growth for budget hotels in Europe.
Budget hotels in the UAE are registering solid occupancy rates and provided good returns during the review period. Room occupancy rates in the country stood at 72.2% in 2013. Accor's Ibis brand entered the Middle East in 2008 and currently has six properties in the UAE running at an occupancy rate of 80%. According to Christian Karaoglanian, the chief development officer for Accor Hospitality Worldwide, the cost of building a budget hotel is 20-25% that of a luxury hotel.
Key Topics Covered:
1 Global Budget Hotels - Key Trends and Issues
2 Global Budget Hotels - Mergers and Acquisitions
3 Global Budget Hotel KPIs - the Americas
4 Global Budget Hotel KPIS - Asia-Pacific
5 Global Budget Hotel KPIs - Europe
6 Global Budget Hotel KPIs - the Middle East and Africa
7 Global Budget Hotel Profiles
- Red Roof Inn
- Candlewood Suites
- Formule 1
- ibis budget hotels
- Premier Inn
- Home Inns Group
- Holiday Inn Express
- Econo Lodge
For more information visit http://www.researchandmarkets.com/research/htsxps/the_global_budget