Skift Take
It’s true that giant hotel groups like Marriott and Hilton loom large. But independent hotel brands aren’t going down without a fight.
Global Hotel Alliance, which runs a shared loyalty program for about 40 independent hotel brands, reported robust growth in the third quarter, with double-digit gains in performance across key measures.
The results underscored how many independent hotels, not just those belonging to the major hotel groups, are broadly enjoying resilient growth this year.
Brands such as Minor International’s NH Hotels, Highgate’s Viceroy, and The Leela Palaces, Hotels and Resorts belong to the GHA Discovery loyalty program. The program’s 28 million members redeem “dollars” for stays at more than 800 hotels.
Robust Third Quarter
- For the first nine months of the year, total revenues at the alliance’s hotels were up 15% year-over-year to $2 billion.
- Room nights increased by 16%, so growth was not merely due to rate hikes. Americans traveling internationally made up the majority of the bookings.
- Redemptions in the loyalty program rose 95% year-on-year.
Alternative to Online Travel Agencies
Many hotel brands join the Global Hotel Alliance to drive more direct bookings. Often, independent hotel brands receive less than a fifth of their bookings directly. Their largest share of bookings typically is instead from online travel agencies, which charge relatively high commissions.
The UAE-headquartered organization said that in the third quarter, member hotels saw direct bookings rise 40% year-over-year.
Regional Performance
Spain led total room revenues across domestic and international stays in the quarter, followed by Thailand, Italy, Singapore, and the UAE.
Thailand’s properties demonstrated strong international appeal, with 93% of room revenue coming from cross-border stays.
Americans traveling internationally delivered a majority of the bookings worldwide.
The Global Hotel Alliance appears to have momentum in attracting hotel brands. Last month, the alliance added four: Unike Hotels in Norway, Sunway Hotels & Resorts in Malaysia, Andronis in Greece, and Paramount Hotels in the UAE.
