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HOTEL INDUSTRY REPORT

With the ever-changing landscape hotels have been maneuvering to get a step ahead (or at least stay relevant) through recent acquisitions or by starting to dip their toes into the rental/share market. However, now more than ever it’s paramount that they embrace digital and make it one of their core strategies. With the triple threat from the “outsiders” like OTA’s, Google, and Airbnb the strategy game has been raised a level. Not only getting to the consumer, but more importantly keeping the consumer has become that much more difficult. In our second peer group analysis, part of our ongoing Digital Strength Index (DSI) study, Isobar and alpha-DNA evaluate the U.S. hotel industry.

KEY FINDINGS

1

There's Marriott, and then there's everybody else. Marriott is dominating across the board in terms of Magnitude and Momentum.

2

Hyatt lagging in digital is a weakness that likely hurts its long-term growth prospects.

3

Among smaller players, Choice Hotels digital velocity likely points to future out-performance relative to Extended Stay.

4

Wyndham and Hilton should consider aggressive moves.

WEIGHTED
SCORECARD

Marriott is the leader among the hotel peer group, dominating Digital across many dimensions relative to its traditional hotels peers. We predict Hilton will struggle for real growth after the spin-off dust settles; Hyatt with its fundamental weakness in digital and Extended Stay for lack of scale will lag the category in terms of growth. Among smaller players, Choice Hotels digital velocity likely points to future out-performance relative to Extended Stay.

TURNING THE
OCCASIONAL VISITOR INTO
A LOYAL CUSTOMER

With the ever-changing landscape, hotels have been maneuvering to get a step ahead but now more than ever it’s paramount that they embrace digital and make it one of their core strategies.