singapore hotel industry profile

Singapore - Hotels & Motels 0116 - 0520 - 2011

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MarketLine Industry Profile

Hotels & Motels in Singapore October 2012

Reference Code: 0116-0520

Publication Date: October 2012

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Nur A'in

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EXECUTIVE SUMMARY

Market value The Singaporean hotels & motels industry grew by 22.9% in 2011 to reach a value of $3.5 billion.

Market value forecast In 2016, the Singaporean hotels & motels industry is forecast to have a value of $4.5 billion, an increase of 28.6% since

2011.

Market volume The Singaporean hotels & motels industry grew by 8% in 2011 to reach a volume of 311 hotels & motels.

Market volume forecast In 2016, the Singaporean hotels & motels industry is forecast to have a volume of 419 hotels & motels, an increase of

34.7% since 2011.

Category segmentation Leisure is the largest segment of the hotels & motels industry in Singapore, accounting for 81.5% of the industry's total

value.

Geography segmentation Singapore accounts for 2.8% of the Asia-Pacific hotels & motels industry value.

Market rivalry The hotels and motels industry is dominated by large international players, who compete intensely for a share of the

market.



TABLE OF CONTENTS

Executive Summary ....................................................................................................................................................... 2

Market value ............................................................................................................................................................... 2

Market value forecast ................................................................................................................................................. 2

Market volume ............................................................................................................................................................ 2

Market volume forecast .............................................................................................................................................. 2

Category segmentation .............................................................................................................................................. 2

Geography segmentation ........................................................................................................................................... 2

Market rivalry .............................................................................................................................................................. 2

Market Overview ............................................................................................................................................................ 7

Market definition ......................................................................................................................................................... 7

Market analysis .......................................................................................................................................................... 7

Market Data ................................................................................................................................................................... 8

Market value ............................................................................................................................................................... 8

Market volume ............................................................................................................................................................ 9

Market Segmentation ................................................................................................................................................... 10

Category segmentation ............................................................................................................................................ 10

Geography segmentation ......................................................................................................................................... 11

Market Outlook ............................................................................................................................................................. 12

Market value forecast ............................................................................................................................................... 12

Market volume forecast ............................................................................................................................................ 13

Five Forces Analysis .................................................................................................................................................... 14

Summary .................................................................................................................................................................. 14

Buyer power ............................................................................................................................................................. 15

Supplier power ......................................................................................................................................................... 16

New entrants ............................................................................................................................................................ 17

Threat of substitutes ................................................................................................................................................. 18

Degree of rivalry ....................................................................................................................................................... 19

Leading Companies ..................................................................................................................................................... 20



Accor SA .................................................................................................................................................................. 20

Fairmont Raffles Hotels International ....................................................................................................................... 23

InterContinental Hotels Group Plc ............................................................................................................................ 24

Millennium & Copthorne Hotels plc .......................................................................................................................... 27

Macroeconomic Indicators ........................................................................................................................................... 30

Country Data ............................................................................................................................................................ 30

Appendix ...................................................................................................................................................................... 32

Methodology ............................................................................................................................................................. 32

Industry associations ................................................................................................................................................ 33

Related MarketLine research ................................................................................................................................... 33



LIST OF TABLES

Table 1: Singapore hotels & motels industry value: $ billion, 2007–11 .......................................................................... 8

Table 2: Singapore hotels & motels industry volume: hotels & motels, 2007–11 ........................................................... 9

Table 3: Singapore hotels & motels industry category segmentation: $ billion, 2011 ................................................... 10

Table 4: Singapore hotels & motels industry geography segmentation: $ billion, 2011 ................................................ 11

Table 5: Singapore hotels & motels industry value forecast: $ billion, 2011–16 ........................................................... 12

Table 6: Singapore hotels & motels industry volume forecast: hotels & motels, 2011–16 ........................................... 13

Table 7: Accor SA: key facts ........................................................................................................................................ 20

Table 8: Accor SA: key financials ($) ........................................................................................................................... 20

Table 9: Accor SA: key financials (€) ........................................................................................................................... 21

Table 10: Accor SA: key financial ratios ....................................................................................................................... 21

Table 11: Fairmont Raffles Hotels International: key facts ........................................................................................... 23

Table 12: InterContinental Hotels Group Plc: key facts ................................................................................................ 24

Table 13: InterContinental Hotels Group Plc: key financials ($) ................................................................................... 24

Table 14: InterContinental Hotels Group Plc: key financial ratios ................................................................................ 25

Table 15: Millennium & Copthorne Hotels plc: key facts .............................................................................................. 27

Table 16: Millennium & Copthorne Hotels plc: key financials ($) ................................................................................. 28

Table 17: Millennium & Copthorne Hotels plc: key financials (£) ................................................................................. 28

Table 18: Millennium & Copthorne Hotels plc: key financial ratios ............................................................................... 28

Table 19: Singapore size of population (million), 2007–11 ........................................................................................... 30

Table 20: Singapore gdp (constant 2000 prices, $ billion), 2007–11............................................................................ 30

Table 21: Singapore gdp (current prices, $ billion), 2007–11 ....................................................................................... 30

Table 22: Singapore inflation, 2007–11 ........................................................................................................................ 31

Table 23: Singapore consumer price index (absolute), 2007–11 ................................................................................. 31

Table 24: Singapore exchange rate, 2007–11 ............................................................................................................. 31



LIST OF FIGURES

Figure 1: Singapore hotels & motels industry value: $ billion, 2007–11 ......................................................................... 8

Figure 2: Singapore hotels & motels industry volume: hotels & motels, 2007–11 .......................................................... 9

Figure 3: Singapore hotels & motels industry category segmentation: % share, by value, 2011 ................................. 10

Figure 4: Singapore hotels & motels industry geography segmentation: % share, by value, 2011 .............................. 11

Figure 5: Singapore hotels & motels industry value forecast: $ billion, 2011–16 ......................................................... 12

Figure 6: Singapore hotels & motels industry volume forecast: hotels & motels, 2011–16 .......................................... 13

Figure 7: Forces driving competition in the hotels & motels industry in Singapore, 2011 ............................................. 14

Figure 8: Drivers of buyer power in the hotels & motels industry in Singapore, 2011 .................................................. 15

Figure 9: Drivers of supplier power in the hotels & motels industry in Singapore, 2011 ............................................... 16

Figure 10: Factors influencing the likelihood of new entrants in the hotels & motels industry in Singapore, 2011 ....... 17

Figure 11: Factors influencing the threat of substitutes in the hotels & motels industry in Singapore, 2011 ................ 18

Figure 12: Drivers of degree of rivalry in the hotels & motels industry in Singapore, 2011 .......................................... 19

Figure 13: Accor SA: revenues & profitability ............................................................................................................... 22

Figure 14: Accor SA: assets & liabilities ....................................................................................................................... 22

Figure 15: InterContinental Hotels Group Plc: revenues & profitability ......................................................................... 25

Figure 16: InterContinental Hotels Group Plc: assets & liabilities ................................................................................ 26

Figure 17: Millennium & Copthorne Hotels plc: revenues & profitability ....................................................................... 29

Figure 18: Millennium & Copthorne Hotels plc: assets & liabilities ............................................................................... 29



MARKET OVERVIEW

Market definition The hotels & motels industry value consists of all revenues generated by hotels, motels and other accommodation

providers, through the provision of accommodation and food service.

The value does not include any revenues generated through other interests, such as casinos, shops and

telecommunication services.

The industry is segmented according to the origin of the revenues (leisure consumers and business consumers).

Any currency conversions included within this report have been calculated using constant 2011 annual average

exchange rates.

For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand,

Singapore, South Korea, Taiwan, and Thailand.

Market analysis The Singaporean hotels & motels industry declined steeply in 2009. The industry recovered and posted good growth in

2010 and 2011. Moderate growth is expected for the forecast period.

The Singaporean hotels & motels industry had total revenues of $3.5 billion in 2011, representing a compound annual

growth rate (CAGR) of 7.8% between 2007 and 2011. In comparison, the Chinese and South Korean industries grew

with CAGRs of 8.6% and 6.5% respectively, over the same period, to reach respective values of $48.1 billion and $5.6

billion in 2011.

The number of hotels & motels increased with a CAGR of 8.3% between 2007 and 2011, to reach a total of 310.9 in

2011. The industry's volume is expected to rise to 419.2 hotels & motels by the end of 2016, representing a CAGR of

6.2% for the 2011-2016 period.

The leisure segment was the industry's most lucrative in 2011, with total revenues of $2.8 billion, equivalent to 81.5% of

the industry's overall value. The business segment contributed revenues of $647.5 billion in 2011, equating to 18.5% of

the industry's aggregate value.

The performance of the industry is forecast to decelerate, with an anticipated CAGR of 5.2% for the five-year period

2011 - 2016, which is expected to drive the industry to a value of $4.5 billion by the end of 2016. Comparatively, the

Chinese and South Korean industries will grow with CAGRs of 12.7% and 7% respectively, over the same period, to

reach respective values of $87.5 billion and $7.9 billion in 2016.



MARKET DATA

Market value The Singaporean hotels & motels industry grew by 22.9% in 2011 to reach a value of $3.5 billion.

The compound annual growth rate of the industry in the period 2007–11 was 7.8%.

Table 1: Singapore hotels & motels industry value: $ billion, 2007–11

Year $ billion Si$ billion € billion % Growth

2007 2.6 3.2 1.9

2008 2.9 3.7 2.1 13.5%

2009 2.3 2.8 1.6 (23.0%)

2010 2.8 3.6 2.0 25.9%

2011 3.5 4.4 2.5 22.9%

CAGR: 2007–11 7.8%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: Singapore hotels & motels industry value: $ billion, 2007–11




Market volume The Singaporean hotels & motels industry grew by 8% in 2011 to reach a volume of 311 hotels & motels.

The compound annual growth rate of the industry in the period 2007–11 was 8.3%.

Table 2: Singapore hotels & motels industry volume: hotels & motels, 2007–11

Year hotels & motels % Growth

2007 226.0

2008 243.0 7.5%

2009 268.0 10.3%

2010 288.0 7.5%

2011 311.0 8.0%

CAGR: 2007–11 8.3%


Figure 2: Singapore hotels & motels industry volume: hotels & motels, 2007–11




MARKET SEGMENTATION

Category segmentation Leisure is the largest segment of the hotels & motels industry in Singapore, accounting for 81.5% of the industry's total

value.

The Business segment accounts for the remaining 18.5% of the industry.

Table 3: Singapore hotels & motels industry category segmentation: $ billion, 2011

Category 2011 %

Leisure 2.8 81.5%

Business 0.6 18.5%

Total 3.4 100%


Figure 3: Singapore hotels & motels industry category segmentation: % share, by value, 2011




Geography segmentation Singapore accounts for 2.8% of the Asia-Pacific hotels & motels industry value.

China accounts for a further 37.9% of the Asia-Pacific industry.

Table 4: Singapore hotels & motels industry geography segmentation: $ billion, 2011

Geography 2011 %

China 48.1 37.9

Japan 42.7 33.7

South Korea 5.6 4.4

Singapore 3.5 2.8

Taiwan 1.6 1.2

Rest of Asia-Pacific 25.4 20.0

Total 126.9 100%


Figure 4: Singapore hotels & motels industry geography segmentation: % share, by value, 2011




MARKET OUTLOOK

Market value forecast In 2016, the Singaporean hotels & motels industry is forecast to have a value of $4.5 billion, an increase of 28.6% since

2011.

The compound annual growth rate of the industry in the period 2011–16 is predicted to be 5.2%.

Table 5: Singapore hotels & motels industry value forecast: $ billion, 2011–16

Year $ billion Si$ billion € billion % Growth

2011 3.5 4.4 2.5 22.9%

2012 3.6 4.5 2.6 3.1%

2013 3.8 4.8 2.7 5.2%

2014 4.0 5.1 2.9 6.5%

2015 4.3 5.4 3.1 6.3%

2016 4.5 5.7 3.2 5.1%

CAGR: 2011–16 5.2%


Figure 5: Singapore hotels & motels industry value forecast: $ billion, 2011–16




Market volume forecast In 2016, the Singaporean hotels & motels industry is forecast to have a volume of 419 hotels & motels, an increase of

34.7% since 2011.

The compound annual growth rate of the industry in the period 2011–16 is predicted to be 6.1%.

Table 6: Singapore hotels & motels industry volume forecast: hotels & motels, 2011–16

Year hotels & motels % Growth

2011 311.0 8.0%

2012 332.0 6.8%

2013 354.0 6.6%

2014 376.0 6.2%

2015 398.0 5.9%

2016 419.0 5.3%

CAGR: 2011–16 6.1%


Figure 6: Singapore hotels & motels industry volume forecast: hotels & motels, 2011–16




FIVE FORCES ANALYSIS

The hotels & motels market will be analyzed taking hotel and motel operators as players. The key buyers will be taken as

consumers, and property owners, interior designers, and information and computer technology manufacturers as the key

suppliers.

Summary

Figure 7: Forces driving competition in the hotels & motels industry in Singapore, 2011


The hotels and motels industry is dominated by large international players, who compete intensely for a share of the

market.

Within the hotels and motels industry, where switching costs are rather negligible and competing on price alone is no

longer a key to success, brand recognition and innovation helps to attract first-time customers and also repeat business.

Suppliers include providers of various goods and services, as well as a qualified workforce. Due to a high reliance on

sophisticated technology and systems and the growing importance of mobile communication channels, some suppliers

may exert strong supplier power.

Globalization is an important key driver within the industry, with emerging and developing industries offering significant

opportunities; however, it also involves employing various business strategies and extra costs.

Some of these emerging industries, such as in Tunisia and Egypt, which had previously provided strong areas for

growth, have been hit by political disturbances. These events may have upset consumer confidence. How quickly these

industries recover remains to be seen, but the currently volatile nature of the tourism industry as a whole, will directly

affect the hotel and motels industry until confidence in the global economy is restored.



Buyer power

Figure 8: Drivers of buyer power in the hotels & motels industry in Singapore, 2011


Within the hotels & motels industry, which is both mature and very competitive, brand recognition is important to attract

consumers. A strong brand image helps to attract first-time customers and also to repeat business, as switching costs

are negligible in this industry. Differentiation between brands becomes important, as one particular brand becomes

synonymous with quality, price or a specific target age group for example.

Buyers are generally price sensitive, except in the premium market. Innovation is also vitally important in attracting

customers, as competing on price alone can be difficult. In the premium segment, companies can attract customers by

better security and more facilities, such as spas, gyms and integrating hotels into golf complexes. Larger companies

have implemented loyalty schemes, by offering a points system or air miles to regular customers, which reduces buyer

power.

As customers are numerous and mostly small in size, their buyer power is reduced, since the impact of losing one

customer is not a significant threat to business. However, as many of the countries with a heavy reliance on the tourism

industry have discovered, the reduction in the number of holiday makers and overall travelers’ number means that buyer

power has increased, as consumers have more options available, often at a lower price point.

Overall, buyer power is moderate.



Supplier power

Figure 9: Drivers of supplier power in the hotels & motels industry in Singapore, 2011


Suppliers in this industry are defined as property owners, developers and real estate companies, interior design and

furnishing companies, architects, management and training service providers, marketing companies, industry

consultants, and information and computer technology (ICT) manufacturers.

Real estate companies are often much smaller companies than hotel and motel operators and rather than being

globalized, they are usually local to the property they develop, which reduces their financial muscle and ability to

negotiate favorable contracts. Furthermore, hotels can integrate backwards and operate their own real estate business.

The quality and availability of supplier services and equipment is essential to the hotel and motel industry. Hotel

operators are reliant upon sophisticated technology and systems, including technology utilized for property management,

procurement and reservation systems. Applications, databases and networks must integrate easily with each other and

third-party systems to facilitate collaborations with partners. The growing importance of the mobile channel is clear. The

technology platforms used by hospitality companies must support and enable all user interactions to integrate in the

future, from phones to fax machines to personal computers to personal digital assistants (PDAs) to mobiles. This

strengthens supplier power.

The industry is also labor intensive. Staff costs are significant as success in the hotel industry is strongly influenced by

the quality of the service provided.

Supplier power is assessed as moderate overall.



New entrants

Figure 10: Factors influencing the likelihood of new entrants in the hotels & motels industry in Singapore, 2011


The hotels & motels industry is strongly influenced by travel and tourism trends. The situation within the industry has

changed significantly in recent years. The business used to be strong and the biggest challenge was finding space to

book. In recent times, many hotel and motel operators are faced with the challenge of finding customers. The recent

global economic downturn had an adverse effect on the industry’s performance and now more than ever, most hoteliers

are searching for demand generators and are relying on direct sales to impact revenues and fill the significant void left by

the ailing economy. This may act as a deterrent for newcomers; however, the growth forecast is positive, which may

boost the risk of new entrants in future.

It is possible to enter the industry in a relatively low-key way by opening a small, independent hotel or motel as a sole

proprietor. However, the industry is capital intensive, and for a large-scale entrance, upfront investment in buildings,

décor and furnishings, ICT infrastructure and staff is expensive. In a highly competitive business, conducting operations

using all the latest technology, as well as constantly developing the tools and skills required, is essential (e.g. allowing

travelers to check in to hotel rooms remotely). The more demanding customer of the future will want to engage with a

hotel across all touch points (i.e. text, email, and social media) where appropriate.

As tourism is not a vital consumer good, it will tend to be cyclical and travelers are increasingly expecting bargain rates

while refusing to tolerate lapses in quality and service. To sustain revenue growth in the premium market, operating a

chain of hotels is often an important strategy as it reduces dependence on tourism in any particular location. However, in

order to open an international chain of hotels, regulations in terms of real estate and buying abroad need to be taken into

consideration and can therefore be restrictive in some countries. The purchase, leasing, and management of property

may involve legal and financial complexities, necessitating spending on professional services.

Overall, the likelihood of new entrants is moderate.



Threat of substitutes

Figure 11: Factors influencing the threat of substitutes in the hotels & motels industry in Singapore, 2011


Substitutes to hotels and motels include alternative forms of leisure accommodation, such as camping facilities or

recreational vehicles, or informal accommodation with friends and family. Switching costs range from negligible to high

(e.g. the purchase price of a recreational vehicle).

While all these substitutes offer the same basic function of a place to stay, up-market hotels and motels often provide

added benefits, such as spas and restaurants. Additionally, whilst some of these substitutes offer reduced costs to hotels

and can undercut the hotels and motels industry, this switch is often out of necessity rather than choice, so when

consumers are in a more generally affluent position, the threat from substitutes is likely to decline.

The threat of substitutes is assessed as moderate.



Degree of rivalry

Figure 12: Drivers of degree of rivalry in the hotels & motels industry in Singapore, 2011


The industry includes several large hotel operators, such as Accor and Fairmont Raffles, with most of the leading players

operating several different branded chains. However, there are also a large number of independent players present in

the industry. Larger number of players means increased competition.

Many larger operators have diversified to some extent and own additional businesses, such as casinos, restaurants and

shops. To attract and sustain more business, operators try to offer more complex packages and value-added services,

such as free breakfast and parking, free third night, etc. Recently, a rising popularity of lifestyle hotels amongst major

chains has been observed. Such hotels cater to the conscientious traveler's demands for eco-friendly practices, social

responsibility, and affordable style.

The largest hotel and motel operators are fairly well insulated from unpredictable market conditions by geographical

diversification. However, others are based largely or exclusively in one country.

Exit barriers in the industry are fairly high because most of the major tangible assets are highly specific to their industry,

and thus harder to divest. This is a likely motivator for many of the global leaders to pursue expansion through

franchising and hotel management services, as well as through the acquisition of properties. Many big chains have

adopted an asset-light business model in order to fuel expansion; selling off assets has allowed large competitors to

raise capital and invest in expanded operations, which again intensifies the competitive nature of the industry.

Strong growth in the industry helps to alleviate rivalry to an extent.

Overall, rivalry in the industry is moderate.



LEADING COMPANIES

Accor SA

Table 7: Accor SA: key facts

Head office: Immeuble Odyssey, 110, avenue de France, Paris 75210, FRA

Telephone: 33 1 45 38 86 00

Website: www.accor.com

Financial year-end: December

Ticker: AC

Stock exchange: Paris

SOURCE: COMPANY WEBSITE M A R K E T L I N E

Accor SA (Accor or 'the group') is a major global hotel operator. The group operates in 92 countries across the globe with

Europe being the largest center for its operations, with nearly 4,426 hotels and 531,714 rooms as of December 2011. In

FY2011, Accor operated 1,489 hotels in France; 1,001 hotels in rest of Europe; 1,111 hotels in North America; 194 Latin

America and Caribbean; and 631 in other countries.

Accor operates through one business segment: hotels. However, the hotel segment is further divided in to three hotel

sub-segments: upscale and midscale hotels, economy hotels and economy hotels US.

The upscale and midscale hotels segment comprises the Sofitel, Pullman, Novotel, Mercure, Adagio and Suite Novotel

brands.

The economy hotels consists of the Formule 1, HotelF1, Etap Hotel/ibis budget, all seasons/ibis Styles and ibis brands.

The economy hotels and economy hotels US segment comprises of Motel 6 and Studio 6 brands.

As part as the strategic refocusing on Accor core hotels business, the group sold Groupe Lucien Barriere and Lenotre in

March 2011 and September 2011, respectively, which transformed Accor in to a 100% hotelier.

Key Metrics

The company recorded revenues of $8,486 million in the fiscal year ending December 2011, an increase of 2.6%

compared to fiscal 2010. Its net income was $38 million in fiscal 2011, compared to a net income of $5,008 million in the

preceding year.

Table 8: Accor SA: key financials ($)

$ million 2007 2008 2009 2010 2011

Revenues 11,298.0 10,742.9 7,637.7 8,274.9 8,486.4

Net income (loss) 1,228.4 799.9 (392.3) 5,008.3 37.6

Total assets 15,072.3 15,883.4 16,341.1 12,072.9 11,129.7

Total liabilities 9,852.5 10,936.3 11,814.1 6,579.0 5,887.6

Employees 172,695 158,162 150,525 143,939 144,893

SOURCE: COMPANY FILINGS M A R K E T L I N E



Table 9: Accor SA: key financials (€)

€ million 2007 2008 2009 2010 2011

Revenues 8,121.0 7,722.0 5,490.0 5,948.0 6,100.0

Net income (loss) 883.0 575.0 (282.0) 3,600.0 27.0

Total assets 10,834.0 11, 17.0 11,746.0 8,678.0 8,000.0



Table 10: Accor SA: key financial ratios

Ratio 2007 2008 2009 2010 2011

Profit margin 10.9% 7.4% (5.1%) 60.5% 0.4%

Revenue growth 6.8% (4.9%) (28.9%) 8.3% 2.6%

Asset growth (2.7%) 5.4% 2.9% (26.1%) (7.8%)

Liabilities growth 1.6% 11.0% 8.0% (44.3%) (10.5%)

Debt/asset ratio 65.4% 68.9% 72.3% 54.5% 52.9%

Return on assets 8.0% 5.2% (2.4%) 35.3% 0.3%

Revenue per employee $65,422 $67,923 $50,741 $57,489 $58,570

Profit per employee $7,113 $5,058 ($2,606) $34,795 $259




Figure 13: Accor SA: revenues & profitability


Figure 14: Accor SA: assets & liabilities




Fairmont Raffles Hotels International

Table 11: Fairmont Raffles Hotels International: key facts

Head office: 155 Wellington St. West, Ste. 3300, Toronto, ON M5V 0C3, Canada

Telephone: 1 416 874 2600

Fax: 1 416 874 2601

Website: www.frhi.com


Fairmont Raffles Hotels International has approximately 100 properties in 29 countries across the world. The company

operates under the Fairmont, Raffles, and Swissôtel brands and is known for its upscale hotels.

Fairmont Raffles Hotels International is one of the leaders in the global luxury hotel market. The company is

headquartered in Toronto, Canada.

Key Metrics

As a private company, Fairmont Raffles Hotels International is not required to release its financial information.



InterContinental Hotels Group Plc

Table 12: InterContinental Hotels Group Plc: key facts

Head office: Broadwater Park, Denham, Buckinghamshire, UB9 5HR, GBR

Telephone: 44 1895 512 000

Fax: 44 1895 512 101

Website: www.ihgplc.com


Ticker: IHG

Stock exchange: London


IHG is an owner, operator and franchisor of hotels and resorts. The group, through its subsidiaries owns, manages,

leases and franchises over 4,437 hotels with more than 647,161 rooms in nearly 100 countries and territories around the

world. The group also manages the hotel loyalty program, Priority Club Rewards.

IHG operates hotels in three different ways - as a franchisor, a manager and on an owned and leased basis. It operates

largest part of its business in franchising, covering over 3,783 hotels under franchise agreements. It manages around

639 hotels worldwide and owns 15 hotels worldwide.

The group works with more than 2,000 hotel owners throughout the world. Additionally, the groups advertising and

marketing campaigns include 10 global call centers, 13 local language websites, 8,000-strong sales force and Priority

Club Rewards - the world's largest hotel loyalty scheme which has 48 million members.

IHG primarily operates in the UK, the US, Asia Pacific, Europe (excluding UK), Africa and the Middle East. Though the

group reports its results as three geographic segments (Americas, EMEA and Asia Pacific), which together with Central

functions, form the principal format by which management is organized and makes operational decisions. All these

segments are aligned along seven hotel brands: InterContinental Hotels and Resorts, Crowne Plaza, Hotel Indigo,

Holiday Inn, Holiday Inn Express, Staybridge Suites, and Candlewood Suites.

Key Metrics


compared to fiscal 2010. Its net income was $460 million in fiscal 2011, compared to a net income of $280 million in the

preceding year.

Table 13: InterContinental Hotels Group Plc: key financials ($)

$ million 2007 2008 2009 2010 2011

Revenues 1,771.0 1,854.0 1,538.0 1,628.0 1,768.0

Net income (loss) 463.0 262.0 294.0 280.0 460.0

Total assets 3,617.0 3,118.0 2,893.0 2,785.0 2,968.0


Employees 8,674 8,334 7,556 7,858 7,956




Table 14: InterContinental Hotels Group Plc: key financial ratios

Ratio 2007 2008 2009 2010 2011

Profit margin 26.1% 14.1% 19.1% 17.2% 26.0%

Revenue growth 84.5% 4.7% (17.0%) 5.9% 8.6%

Asset growth 91.1% (13.8%) (7.2%) (3.7%) 6.6%

Liabilities growth 191.5% (11.4%) (12.2%) (8.4%) (3.7%)

Debt/asset ratio 97.3% 100.0% 94.6% 90.0% 81.3%

Return on assets 16.8% 7.8% 9.8% 9.9% 16.0%


Profit per employee $53,378 $31,437 $38,909 $35,632 $57,818


Figure 15: InterContinental Hotels Group Plc: revenues & profitability




Figure 16: InterContinental Hotels Group Plc: assets & liabilities




Millennium & Copthorne Hotels plc

Table 15: Millennium & Copthorne Hotels plc: key facts

Head office: Scarsdale Place, Kensington, London W8 5SR, GBR

Telephone: 44 20 7872 2444

Fax: 44 20 7872 2460

Local office: Millennium & Copthorne International, 390 Havelock Road, 2-01 King's Centre, Singapore 169662, SGP

Website: www.millenniumhotels.com


Ticker: MLC

Stock exchange: London


Millennium & Copthorne Hotels plc (M&C or 'the group') primarily focuses on ownership, operation, franchising and

management of hotels with significant operations in London, New York and Singapore. The group owns and operates

103 hotels with 29,532 rooms in 17 countries around the world. In addition, Maritim Hotels, its hospitality marketing

alliance partner, operates 50 hotels with 14,427 rooms in seven countries.

M&C operates under four brands: Grand Millennium hotels, Millennium hotels, Copthorne hotels and Kingsgate hotels

and resorts.

The group operates in the Americas, Europe, Middle East, Asia and Australasia. These operations are divided in to

seven main geographical areas: New York, Regional US, London, Rest of Europe, Singapore, Rest of Asia, and

Australasia.

The company operates through two business divisions: hotel and property operations.

The hotel division is engaged in the ownership and management of hotels.

The property operations division primarily focuses on development and the sale of land, properties and also engages in

property investment activities.

Key Metrics


compared to fiscal 2010. Its net income was $258 million in fiscal 2011, compared to a net income of $154 million in the

preceding year.



Table 16: Millennium & Copthorne Hotels plc: key financials ($)

$ million 2007 2008 2009 2010 2011

Revenues 1,073.9 1,127.3 1,048.9 1,192.8 1,316.0

Net income (loss) 255.8 102.6 112.4 154.3 258.1

Total assets 3,872.0 4,703.4 4,418.8 5,108.7 5,326.2


Employees 12,957 12,778 11,131 11,232 10,912


Table 17: Millennium & Copthorne Hotels plc: key financials (£)

£ million 2007 2008 2009 2010 2011

Revenues 669.6 702.9 654.0 743.7 820.5

Net income (loss) 159.5 64.0 70.1 96.2 160.9

Total assets 2,414.2 2,932.6 2,755.1 3,185.3 3,320.9

Total liabilities 860.5 1,051.7 851.4 1,066.6 1,073.3


Table 18: Millennium & Copthorne Hotels plc: key financial ratios

Ratio 2007 2008 2009 2010 2011

Profit margin 23.8% 9.1% 10.7% 12.9% 19.6%

Asset growth 6.3% 21.5% (6.1%) 15.6% 4.3%

Liabilities growth (2.1%) 22.2% (19.0%) 25.3% 0.6%

Debt/asset ratio 35.6% 35.9% 30.9% 33.5% 32.3%

Return on assets 6.8% 2.4% 2.5% 3.2% 4.9%


Profit per employee $19,743 $8,033 $10,101 $13,737 $23,649




Figure 17: Millennium & Copthorne Hotels plc: revenues & profitability


Figure 18: Millennium & Copthorne Hotels plc: assets & liabilities




MACROECONOMIC INDICATORS

Country Data

Table 19: Singapore size of population (million), 2007–11

Year Population (million) % Growth

2007 4.6 4.3%

2008 4.8 5.5%

2009 5.0 3.1%

2010 5.1 1.8%

2011 5.2 2.1%


Table 20: Singapore gdp (constant 2000 prices, $ billion), 2007–11

Year Constant 2000 Prices, $ billion % Growth

2007 140.4 8.8%

2008 142.5 1.5%

2009 141.4 (0.8%)

2010 162.3 14.8%

2011 170.2 4.9%


Table 21: Singapore gdp (current prices, $ billion), 2007–11

Year Current Prices, $ billion % Growth

2007 177.5 21.9%

2008 189.7 6.9%

2009 184.5 (2.7%)

2010 225.0 22.0%

2011 259.8 15.5%




Table 22: Singapore inflation, 2007–11

Year Inflation Rate (%)

2007 2.1%

2008 6.6%

2009 0.6%

2010 2.8%

2011 5.2%


Table 23: Singapore consumer price index (absolute), 2007–11

Year Consumer Price Index (2000 = 100)

2007 106.5

2008 113.5

2009 114.2

2010 117.4

2011 123.5


Table 24: Singapore exchange rate, 2007–11

Year Exchange rate ($/Si$) Exchange rate (€/Si$)

2007 1.5072 2.0623

2008 1.4156 2.0713

2009 1.4558 2.0243

2010 1.3637 1.8103

2011 1.2 67 1.7483




APPENDIX

Methodology MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-

checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by

analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases

provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company

profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market

overview

Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each

definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the

market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and

trends

MarketLine aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to

be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can

then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date



Industry associations

Singapore Hotel Association

260 Tanjong Pagar Road #04-10/03, 088542, Singapore

Tel.: 65 6513 0233

Fax: 65 6438 7170

www.sha.org.sg

International Hotel and Restaurant Association 87, rue Montbrillant, 1202 Geneva, Switzerland

Tel.: 44 22 734 80 41

Fax: 44 22 734 80 56

www.ih-ra.com

Related MarketLine research

Industry Profile

Global Hotels & Motels

Hotels & Motels in Asia-Pacific

Hotels & Motels in Japan

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