Hotels and Motels in Mexico 5 Competitive Forces

MarketLine Industry Profile
Hotels & Motels in

Mexico
May 2015
Reference Code: 0071-0520
Publication Date: May 2015
WWW.MARKETLINE.COM
MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
Mexico - Hotels & Motels

MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
0071 - 0520 - 2014

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EXECUTIVE SUMMARY
Market value
The Mexican hotels & motels industry grew by 12% in 2014 to reach a value of $28.2 billion.
Market value forecast

In 2019, the Mexican hotels & motels industry is forecast to have a value of $40.4 billion, an increase of 43.3% since
2014.
Market volume
The Mexican hotels & motels industry grew by 0.6% in 2014 to reach a volume of 18,199 establishments.
Market volume forecast

In 2019, the Mexican hotels & motels industry is forecast to have a volume of 20,703 establishments, an increase of
13.8% since 2014.
Category segmentation
Leisure is the largest segment of the hotels & motels industry in Mexico, accounting for 90.3% of the industry's total
value.
Geography segmentation
Mexico accounts for 13.5% of the Americas 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 amongst themselves and with numerous smaller independent players.

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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................................................................................................................................................. 19
Degree of rivalry ....................................................................................................................................................... 20
Leading Companies ..................................................................................................................................................... 21
Best Western International Inc. ................................................................................................................................ 21
InterContinental Hotels Group Plc ............................................................................................................................ 22
Wyndham Worldwide Corporation ............................................................................................................................ 25
Macroeconomic Indicators ........................................................................................................................................... 28

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Country Data ............................................................................................................................................................ 28

Methodology................................................................................................................................................................. 30
Industry associations ................................................................................................................................................ 31
Related MarketLine research ................................................................................................................................... 31
Appendix ...................................................................................................................................................................... 32
About MarketLine ..................................................................................................................................................... 32

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LIST OF TABLES
Table 1: Mexico hotels & motels industry value: $ billion, 201014 ............................................................................... 8
Table 2: Mexico hotels & motels industry volume: establishments, 201014 ................................................................. 9
Table 3: Mexico hotels & motels industry category segmentation: $ billion, 2014 ........................................................ 10
Table 4: Mexico hotels & motels industry geography segmentation: $ billion, 2014..................................................... 11
Table 5: Mexico hotels & motels industry value forecast: $ billion, 201419................................................................ 12
Table 6: Mexico hotels & motels industry volume forecast: establishments, 201419 ................................................. 13
Table 7: Best Western International Inc.: key facts ...................................................................................................... 21
Table 8: InterContinental Hotels Group Plc: key facts .................................................................................................. 22
Table 9: InterContinental Hotels Group Plc: key financials ($) ..................................................................................... 22
Table 10: InterContinental Hotels Group Plc: key financial ratios ................................................................................ 23
Table 11: Wyndham Worldwide Corporation: key facts ................................................................................................ 25
Table 12: Wyndham Worldwide Corporation: key financials ($) ................................................................................... 26
Table 13: Wyndham Worldwide Corporation: key financial ratios ................................................................................ 26
Table 14: Mexico size of population (million), 201014................................................................................................ 28
Table 15: Mexico gdp (constant 2005 prices, $ billion), 201014 ................................................................................ 28
Table 16: Mexico gdp (current prices, $ billion), 201014 ............................................................................................ 28
Table 17: Mexico inflation, 201014............................................................................................................................. 29
Table 18: Mexico consumer price index (absolute), 201014 ...................................................................................... 29
Table 19: Mexico exchange rate, 201014 .................................................................................................................. 29

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LIST OF FIGURES
Figure 1: Mexico hotels & motels industry value: $ billion, 201014 .............................................................................. 8
Figure 2: Mexico hotels & motels industry volume: establishments, 201014 ............................................................... 9
Figure 3: Mexico hotels & motels industry category segmentation: % share, by value, 2014 ...................................... 10
Figure 4: Mexico hotels & motels industry geography segmentation: % share, by value, 2014 ................................... 11
Figure 5: Mexico hotels & motels industry value forecast: $ billion, 201419 .............................................................. 12
Figure 6: Mexico hotels & motels industry volume forecast: establishments, 201419 ................................................ 13
Figure 7: Forces driving competition in the hotels & motels industry in Mexico, 2014 .................................................. 14
Figure 8: Drivers of buyer power in the hotels & motels industry in Mexico, 2014 ....................................................... 15
Figure 9: Drivers of supplier power in the hotels & motels industry in Mexico, 2014 .................................................... 16
Figure 10: Factors influencing the likelihood of new entrants in the hotels & motels industry in Mexico, 2014 ............ 17
Figure 11: Factors influencing the threat of substitutes in the hotels & motels industry in Mexico, 2014 ..................... 19
Figure 12: Drivers of degree of rivalry in the hotels & motels industry in Mexico, 2014 ............................................... 20
Figure 13: InterContinental Hotels Group Plc: revenues & profitability ......................................................................... 23
Figure 14: InterContinental Hotels Group Plc: assets & liabilities ................................................................................ 24
Figure 15: Wyndham Worldwide Corporation: revenues & profitability ........................................................................ 26
Figure 16: Wyndham Worldwide Corporation: assets & liabilities ................................................................................ 27

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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. 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). Market volumes are classed as the number of hotels in a
country or region, except in China where data refers to hotels with revenue of over 2.0m Yuan (approximately $325.4
thousand). Any currency conversions included within this report have been calculated using constant 2014 annual
average exchange rates.
For the purposes of this report, North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.
Market analysis
The Mexican hotels and motels industry has seen a very high rate of value growth in
recent years, but the number of individual accommodation establishments in the country has remained relatively stable,
growing by only 1.6% through the period 2010-2014.
The Mexican market has in recent years been characterised by strong demand growth that volume growth has struggled
to keep pace with. This has resulted in rising prices, occupancy, and increased revenue per room. Going forward,
revenues look set to continue growing, as increased investment in the hotels and motels industry results in a greater
expansion in industry volumes, and the growing Mexican middle class travels more frequently.
The Mexican hotels & motels industry had total revenues of $28.2bn in 2014, representing a compound annual growth
rate (CAGR) of 9% between 2010 and 2014. In comparison, the US industry increased with a CAGR of 5%, and the
Canadian industry declined with a compound annual rate of change (CARC) of -0.9%, over the same period, to reach
respective values of $166.2bn and $14.3bn in 2014.
The number of hotels and motels increased with a CAGR of 1.6% between 2010 and 2014, to reach a total of 18,199
establishments in 2014. The industry's volume is expected to rise to 20,703 establishments by the end of 2019,
representing a CAGR of 2.6% for the 2014-2019 period.
The leisure segment was the industry's most lucrative in 2014, with total revenues of $25.5bn, equivalent to 90.3% of the
industry's overall value. The business segment contributed revenues of $2.7bn in 2014, equating to 9.7% of the
industry's aggregate value.
The performance of the industry is forecast to decelerate, with an anticipated CAGR of 7.4% for the five-year period
2014 - 2019, which is expected to drive the industry to a value of $40.4bn by the end of 2019. Comparatively, the US and
Canadian industries will grow with CAGRs of 4.4% and 3.5% respectively, over the same period, to reach respective
values of $206.3bn and $17.0bn in 2019.

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MARKET DATA
Market value
The Mexican hotels & motels industry grew by 12% in 2014 to reach a value of $28.2 billion.
The compound annual growth rate of the industry in the period 201014 was 9%.
Table 1: Mexico hotels & motels industry value: $ billion, 201014

Year
$ billion
MXN billion
billion
2010
20.0
266.5
15.1
2011
21.3
283.0
16.0
6.2%
2012
23.1
307.7
17.4
8.7%
2013
25.2
335.2
19.0
8.9%
2014
28.2
375.5
21.3
12.0%
CAGR: 201014
SOURCE: MARKETLINE
% Growth
9.0%
MARKETLINE
Figure 1: Mexico hotels & motels industry value: $ billion, 201014
SOURCE: MARKETLINE

MARKETLINE
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Market volume
The Mexican hotels & motels industry grew by 0.6% in 2014 to reach a volume of 18,199 establishments.
The compound annual growth rate of the industry in the period 201014 was 1.6%.
Table 2: Mexico hotels & motels industry volume: establishments, 201014

Year
establishments
2010
17,053.0
2011
16,777.0
(1.6%)
2012
17,549.0
4.6%
2013
18,093.0
3.1%
2014
18,199.0
0.6%
CAGR: 201014
SOURCE: MARKETLINE
% Growth
1.6%
MARKETLINE
Figure 2: Mexico hotels & motels industry volume: establishments, 201014
SOURCE: MARKETLINE

MARKETLINE
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MARKET SEGMENTATION
Category segmentation
Leisure is the largest segment of the hotels & motels industry in Mexico, accounting for 90.3% of the industry's total
value.
The Business segment accounts for the remaining 9.7% of the industry.
Table 3: Mexico hotels & motels industry category segmentation: $ billion, 2014
Category
2014
Leisure
25.5
90.3%
2.7
9.7%
28.2
100%
Business
Total
SOURCE: MARKETLINE
MARKETLINE
Figure 3: Mexico hotels & motels industry category segmentation: % share, by value, 2014
SOURCE: MARKETLINE

MARKETLINE
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Geography segmentation
Mexico accounts for 13.5% of the Americas hotels & motels industry value.
The United States accounts for a further 79.6% of the Americas industry.
Table 4: Mexico hotels & motels industry geography segmentation: $ billion, 2014
Geography
2014
United States
166.2
79.6
Mexico
28.2
13.5
Brazil
17.1
8.2
Canada
14.3
6.9
Rest of South America
-17.1
-8.2
Total
208.7
100%
SOURCE: MARKETLINE
MARKETLINE
Figure 4: Mexico hotels & motels industry geography segmentation: % share, by value, 2014
SOURCE: MARKETLINE

MARKETLINE
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MARKET OUTLOOK
Market value forecast
In 2019, the Mexican hotels & motels industry is forecast to have a value of $40.4 billion, an increase of 43.3% since
2014.
The compound annual growth rate of the industry in the period 201419 is predicted to be 7.4%.
Table 5: Mexico hotels & motels industry value forecast: $ billion, 201419
Year
$ billion
MXN billion
billion
% Growth
2014
28.2
375.5
21.3
12.0%
2015
30.4
404.2
22.9
7.6%
2016
32.6
434.2
24.6
7.4%
2017
35.1
466.6
26.4
7.5%
2018
37.7
501.4
28.4
7.4%
2019
40.4
537.8
30.5
7.3%
CAGR: 201419
SOURCE: MARKETLINE
7.4%
MARKETLINE
Figure 5: Mexico hotels & motels industry value forecast: $ billion, 201419
SOURCE: MARKETLINE

MARKETLINE
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Market volume forecast

In 2019, the Mexican hotels & motels industry is forecast to have a volume of 20,703 establishments, an increase of
13.8% since 2014.
The compound annual growth rate of the industry in the period 201419 is predicted to be 2.6%.
Table 6: Mexico hotels & motels industry volume forecast: establishments, 201419
Year
establishments
% Growth
2014
18,199.0
0.6%
2015
18,623.0
2.3%
2016
19,069.0
2.4%
2017
19,573.0
2.6%
2018
20,127.0
2.8%
2019
20,703.0
2.9%
CAGR: 201419
SOURCE: MARKETLINE
2.6%
MARKETLINE
Figure 6: Mexico hotels & motels industry volume forecast: establishments, 201419
SOURCE: MARKETLINE

MARKETLINE
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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 Mexico, 2014
SOURCE: MARKETLINE
MARKETLINE
The hotels and motels industry is dominated by large international players, who compete intensely for a share of the
market amongst themselves and with numerous smaller independent players.
Within the hotels and motels industry, where switching costs are negligible and competing on price alone is no longer a
key to success, brand recognition and innovation helps to attract first-time customers as well as repeat business. Buyers
include corporate and leisure customers.
Suppliers include providers of various goods and services, as well as a qualified workforce. Due to a high reliance on
complex ICT systems and the growing importance of mobile communication channels, some suppliers may exert strong
supplier power.
Entry on a small scale for a new player is possible, but, given the importance of brand power and technology in
expanding, significant capital outlay is required for a large scale operation.
A new substitute in the form of private rentals, widely available through online services such as Airbnb and FlipKey, is a
potential threat to the industry.
Emerging and developing markets offer plenty of growth potential, although their appeal to foreign travellers can be
dampened by unstable political situations. In Mexico, for example, the case of 47 students who went missing and are
presumed murdered at the hands of a drugs cartel has once again drawn attention to the country's high crime rate.

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Buyer power
Figure 8: Drivers of buyer power in the hotels & motels industry in Mexico, 2014
SOURCE: MARKETLINE
MARKETLINE
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 as well as 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. Major players therefore have a wide portfolio
of brands ranging from budget to luxury hotels.
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, particularly when price is closely linked to a buyers perception
of quality. In the premium segment, companies can attract customers with 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, if the number of travellers falls, buyer power is driven up, as
consumers have more options available, often at a lower price point. Furthermore, the wide visibility of online reviews
and the ability to cancel easily online gives buyers greater power. Corporate buyers are larger and therefore have more
power through as a result of their financial muscle.
Over two thirds of buyers can be classed as leisure customers. This means that for the majority of buyers, hotels and
motels are a dispensable service that they do not necessarily need, particularly during economic downturns, thereby
increasing buyer power.
As buyers are the final consumers, forwards integration of players is not an issue. The backwards integration of buyers
however, is a potential factor given the increasing popularity of online services such as Airbnb and FlipKey, which allow
the general public to rent their own homes or spare rooms.
Overall, buyer power is moderate.

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Supplier power
Figure 9: Drivers of supplier power in the hotels & motels industry in Mexico, 2014
SOURCE: MARKETLINE
MARKETLINE
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. Hotels can also integrate backwards and operate their own real estate business.
Nevertheless, switching properties is costly and suppliers can differentiate themselves in terms of construction quality.
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 mobiles. This strengthens supplier power. Additionally,
those supplying technology are not wholly reliant on the hotel industry due to the wide applicability of technology
systems.
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, which strengthens supplier power. However, advances in check-in and booking
technologies have resulted in the requirement for fewer staff overall.
Suppliers are not likely to forwards integrate on a large scale due to the lack of synergies between their core businesses
and the hotel & motel industry.
Supplier power is assessed as moderate overall.

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New entrants
Figure 10: Factors influencing the likelihood of new entrants in the hotels & motels industry in
Mexico, 2014
SOURCE: MARKETLINE
MARKETLINE
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, with suppliers being easily accessible. However, the industry is capital intensive, and for a large-scale
entrance, upfront investment in buildings, dcor 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). More demanding customers
also want to engage with a hotel across all touch points (i.e. text, email, and social media) where appropriate. Intellectual
property around technology is therefore becoming more important in the industry. Furthermore, major players are able to
exploit the power of their brands in order to create alliances with airlines and travel agents. The franchise model of many
large chains also restricts the number of independent competitors and gives franchisees a fixed cost advantage.
As tourism is not a vital consumer good, it will tend to be cyclical and travelers increasingly expect 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.
The notion of brand integrity is crucial: hotels will need to supply consistent service in a global environment, while
adapting to support customers with new cultural backgrounds and sensitivities in local markets. Some companies have
been able to develop a certain business model to avoid many of these extra costs; however, a completely new entrant
might not have sufficient scale economies to attempt this. Some companies, such as Marriott, have developed business
models involving third parties dealing with its property, which has allowed it to bring costs down.
Difficulties in obtaining ISO accreditation and complying with national regulations in areas such as food safety and
information security can also be barriers for new entrants.

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Emerging and developing markets offer plenty of growth potential, although their appeal to foreign travellers can be
dampened by unstable political situations. In Mexico, for example, the case of 47 students who went missing and are
presumed murdered at the hands of a drugs cartel has once again drawn attention to the country's high crime rate;
stories such as this could negatively impact demand growth and therefore also the likelihood of new entrants.
Finally, a very strong rate of market growth has served to increase the likelihood of new entrants in to the hotels and
motels industry in recent years.

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Threat of substitutes
Figure 11: Factors influencing the threat of substitutes in the hotels & motels industry in Mexico,
2014
SOURCE: MARKETLINE
MARKETLINE
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. In some cases hotel
companies can also mitigate the threat of substitutes by expanding in to the threatening business area. Larger hotel
companies might maintain a range of private villas, for example, to reduce the threat of substitution here.
A more recent substitute that is becoming increasingly threatening is the ability to stay with local people in their own
homes or apartments, either by renting a room or the entire property for privacy. Online services in this area include
Airbnb, FlipKey and the more informal Couchsurfing. The International Hotel & Restaurant Association describes these
services as partially unfair to competition and a hot topic to be monitored.
The threat of substitutes is assessed as moderate.

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Degree of rivalry
Figure 12: Drivers of degree of rivalry in the hotels & motels industry in Mexico, 2014
SOURCE: MARKETLINE
MARKETLINE
The Mexican industry includes several large hotel operators, such as Wyndham Worldwide and InterContinental Hotels
Group, 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, parking, or a free third night. 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.
Finally, a very strong rate of market growth serves to alleviate rivalry somewhat in the hotels and motels industry.

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LEADING COMPANIES
Best Western International Inc.
Table 7: Best Western International Inc.: key facts
Head office:
6201 N 24th Parkway, Phoenix, Arizona 85016, USA
Telephone:
1 602 957 4200
Website:
www.bestwestern.com
SOURCE: COMPANY WEBSITE
MARKETLINE
Best Western International (Best Western) is a US-based privately-held hotel chain. The company provides marketing,
reservations and operational support to independently owned and operated hotels.
The company has around 4,000 independently owned and operated hotels in over 100 countries and territories with
around 313,639 guest rooms. It has around 2,070 hotels in North America. Best Western has around 19 international
affiliate offices and property-direct relationships with another six regions. The company also has multilingual,
consolidated reservation and operation centers in Phoenix, Arizona, Milan and Italy.
Best Western's hotel brands include BEST WESTERN, BEST WESTERN PLUS and BEST WESTERN PREMIER. The
company provides online reservation through its website at www.bestwestern.com.
The BEST WESTERN brand offers services and amenities such as breakfast, internet services, local calls, long distance
access, copy and fax services, in-room coffee and tea maker, and lobby-computer to print airline boarding passes, maps
and others. The BEST WESTERN PLUS brand offers services and amenities such as bath amenities, breakfast, in-room
mini-fridge, fitness room, on-site laundry and same-day dry cleaning services, internet, local calls, long distance access,
in-room coffee and tea maker, and business center services.
The BEST WESTERN PREMIER brand offers personalized guest services, furnishings and amenities, breakfast, on-site
dining, linens and towels, bath amenities, television with high definition (HD) channels, in-room safe, in-room mini-fridge,
internet, local calls, long distance access, meeting rooms and business center services.
Best Western offers its customers loyalty programs such as Best Western Rewards, Best Western Speed Rewards, Best
Western Ride Rewards, Best Western Travel Card and Best Western Premier.
The company's key marketing partners include American Automobile Association/Canadian Automobile Association
(AAA/CAA), Harley-Davidson, AARP and MasterCard. Best Western's airline partners include Air Canada, Alaska,
Alitalia, US Airways, Asiana Airlines, American Airlines, China Southern, Continental, Lan Chile, Delta Airlines,
Southwest Airlines, Air France, Air Berlin, Czech Airlines and Hainan.
Key Metrics
As a private entity Best Western International Inc. is not obliged to release its financial results.

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InterContinental Hotels Group Plc

Table 8: InterContinental Hotels Group Plc: key facts
Head office:
Broadwater Park, Denham, Buckinghamshire UB9 5HR, GBR
Telephone:
44 1895 512 000
Website:
www.ihgplc.com
Financial year-end:
December
Ticker:
IHG, IHG
Stock exchange:
London, New York
MARKETLINE
InterContinental Hotel Group (IHG or 'the group') is an owner, operator and franchisor of hotels and resorts. The group
owns, manages, leases and franchises about 4,700 hotels with more than 686,000 rooms in nearly 100 countries and
territories around the world. The group also manages the hotel loyalty program, IHG Rewards Club (formerly known as
Priority Club Rewards).
IHG operates through four reportable segments based on its operations in four geographical regions: Americas; Europe;
Asia, Middle East and Africa (AMEA); and Greater China. The company also has a segment called Central. The Central
segment includes costs of global functions including technology, sales and marketing, finance, human resources and
corporate services; revenue arises principally from technology fee income.
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 3,977 hotels under franchise agreements. It manages around 711
hotels worldwide and owns/leases nine hotels worldwide.
The group works with more than 2,000 hotel owners throughout the world. Additionally, the group's advertising and
marketing campaigns include 11 global call centers, 13 local language websites and IHG Rewards Club, one of the
world's largest hotel loyalty schemes which has 77 million members.
The group's brands include: InterContinental Hotels & Resorts; HUALUXE Hotels & Resorts: EVEN Hotels & Resorts;
Crowne Plaza, Hotel Indigo, Holiday Inn, Holiday Inn Express, Staybridge Suites, and Candlewood Suites.
Key Metrics
The company recorded revenues of $1,858 million in the fiscal year ending December 2014, a decrease of 2.4%
compared to fiscal 2013. Its net income was $391 million in fiscal 2014, compared to a net income of $372 million in the
preceding year.
Table 9: InterContinental Hotels Group Plc: key financials ($)

$ million
Revenues
Net income (loss)
2010
2011
2012
2013
2014
1,628.0
1,768.0
1,835.0
1,903.0
1,858.0
280.0
460.0
537.0
372.0
391.0
Total assets
2,785.0
2,968.0
3,263.0
2,953.0
2,818.0
Total liabilities
2,507.0
2,413.0
2,946.0
3,027.0
3,535.0
SOURCE: COMPANY FILINGS

MARKETLINE
0071 - 0520 - 2014

Page | 22
Table 10: InterContinental Hotels Group Plc: key financial ratios

Ratio
2010
2011
2012
2013
2014
17.2%
26.0%
29.3%
19.5%
21.0%
5.9%
8.6%
3.8%
3.7%
(2.4%)
Asset growth
(3.7%)
6.6%
9.9%
(9.5%)
(4.6%)
Liabilities growth
(8.4%)
(3.7%)
22.1%
2.7%
16.8%
Debt/asset ratio
90.0%
81.3%
90.3%
102.5%
125.4%
Return on assets
9.9%
16.0%
17.2%
12.0%
13.6%
Profit margin
Revenue growth
MARKETLINE
Figure 13: InterContinental Hotels Group Plc: revenues & profitability

MARKETLINE
0071 - 0520 - 2014

Page | 23
Figure 14: InterContinental Hotels Group Plc: assets & liabilities

MARKETLINE
0071 - 0520 - 2014

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Wyndham Worldwide Corporation

Table 11: Wyndham Worldwide Corporation: key facts
Head office:
22 Sylvan Way, Parsippany, New Jersey 07054, USA
Telephone:
1 973 753 6000
Website:
www.wyndhamworldwide.com
Financial year-end:
December
Ticker:
WYN
Stock exchange:
New York
MARKETLINE
Wyndham Worldwide Corporation (Wyndham Worldwide or 'the company') is a global provider of hospitality products and
services. The company offers customers with a choice of hospitality products and services across various
accommodation alternatives and price ranges through its portfolio of 30 brands. It primarily operates in the US, the UK,
and the Netherlands.
The company operates through three business segments: vacation ownership, vacation exchange and rentals, and
lodging.
The vacation ownership segment markets and sells vacation ownership interests to individual consumers, provides
consumer financing in connection with the sale of vacation ownership interests and offers management services at
resorts. The company has developed approximately 191 vacation ownership resorts in the US, Canada, Mexico, the
Caribbean and the South Pacific that represent more than 23,500 individual vacation ownership units and over 907,000
owners of vacation ownership interests. This segment also includes Shell Vacations Club, a vacation ownership club and
property management business in the US.
The vacation exchange and rentals segment provides vacation exchange products and services, and access to
distribution systems and networks to resort developers and owners of intervals of vacation ownership interests. The
company offers vacation exchange services to approximately 3.7 million members through its 4,500 vacation ownership
resorts and has access to over 107,000 vacation properties.
The lodging segment franchises hotels in the upscale, midscale and economy segments of the lodging industry and
provides hotel management services to owners of luxury, upscale and midscale hotels. The segment operates through
15 brands, with approximately 7,480 hotels representing over 645,000 rooms in six continents. The lodging business
franchise operates under two models. In North America, the company employs a direct franchise model whereby it
contracts with and provides services and assistance directly to independent owner-operators of hotels. In other parts of
the world, the company employs either a direct franchise model or a master franchise model whereby it contracts with a
qualified, experienced third party to build a franchise enterprise in such third party's country or region. The company's
franchised hotels operate under lodging brands including Wyndham Hotels and Resorts, Wingate by Wyndham,
Hawthorn, Ramada, Baymont, Days Inn, Super 8, Microtel, Howard Johnson, TRYP by Wyndham, Dream Hotels, Night
Hotels, Planet Hollywood, Travelodge and Knights Inn.
Key Metrics
The company recorded revenues of $5,281 million in the fiscal year ending December 2014, an increase of 11.6%
compared to fiscal 2013. Its net income was $529 million in fiscal 2014, compared to a net income of $432 million in the
preceding year.

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Page | 25
Table 12: Wyndham Worldwide Corporation: key financials ($)

$ million
2010
2011
2012
2013
2014
3,664.0
4,099.0
4,332.0
4,733.0
5,281.0
379.0
417.0
400.0
432.0
529.0
Total assets
9,416.0
9,023.0
9,463.0
9,741.0
9,679.0
Total liabilities
6,499.0
6,791.0
7,532.0
8,116.0
8,422.0
Revenues
Net income (loss)
MARKETLINE
Table 13: Wyndham Worldwide Corporation: key financial ratios

Ratio
Profit margin
2010
2011
2012
2013
2014
10.3%
10.2%
9.2%
9.1%
10.0%
Revenue growth
3.5%
11.9%
5.7%
9.3%
11.6%
Asset growth
0.7%
(4.2%)
4.9%
2.9%
(0.6%)
Liabilities growth
(2.5%)
4.5%
10.9%
7.8%
3.8%
Debt/asset ratio
69.0%
75.3%
79.6%
83.3%
87.0%
Return on assets
4.0%
4.5%
4.3%
4.5%
5.4%
MARKETLINE
Figure 15: Wyndham Worldwide Corporation: revenues & profitability

MARKETLINE
0071 - 0520 - 2014

Page | 26
Figure 16: Wyndham Worldwide Corporation: assets & liabilities

MARKETLINE
0071 - 0520 - 2014

Page | 27
MACROECONOMIC INDICATORS
Country Data
Table 14: Mexico size of population (million), 201014
Year
Population (million)
% Growth
2010
114.1
1.3%
2011
115.5
1.3%
2012
117.0
1.2%
2013
118.4
1.2%
2014
119.7
1.1%
SOURCE: MARKETLINE
MARKETLINE
Table 15: Mexico gdp (constant 2005 prices, $ billion), 201014

Year
Constant 2005 Prices, $ billion
% Growth
2010
953.0
5.1%
2011
991.5
4.0%
2012
1,031.0
4.0%
2013
1,045.2
1.4%
2014
1,068.2
2.2%
SOURCE: MARKETLINE
MARKETLINE
Table 16: Mexico gdp (current prices, $ billion), 201014

Year
Current Prices, $ billion
% Growth
2010
1,051.1
17.5%
2011
1,171.2
11.4%
2012
1,185.7
1.2%
2013
1,260.9
6.3%
2014
1,294.7
2.7%
SOURCE: MARKETLINE

MARKETLINE
0071 - 0520 - 2014

Page | 28
Table 17: Mexico inflation, 201014

Year
Inflation Rate (%)
2010
4.2%
2011
3.4%
2012
4.1%
2013
3.8%
2014
4.0%
SOURCE: MARKETLINE
MARKETLINE
Table 18: Mexico consumer price index (absolute), 201014

Year
Consumer Price Index (2005 = 100)
2010
124.2
2011
128.5
2012
133.7
2013
138.8
2014
144.4
SOURCE: MARKETLINE
MARKETLINE
Table 19: Mexico exchange rate, 201014

Year
Exchange rate ($/MXN)
Exchange rate (/MXN)
2010
12.6452
16.7871
2011
12.4183
17.2764
2012
13.1576
16.8925
2013
12.7579
16.9503
2014
13.3026
17.6558
SOURCE: MARKETLINE

MARKETLINE
0071 - 0520 - 2014

Page | 29
METHODOLOGY
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, crosschecked 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, MarketLines 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

0071 - 0520 - 2014

Page | 30
Industry associations
Associacion de Hoteles de Cozumel
Calle 2 Nte #299-B Col. Centro, Cozumel, Q. Roo. 77600, MEX
Tel.: 52 987 872 75 85
Fax: 52 987 872 76 36
www.islacozumel.com.mx
Asociacion de Hoteles de la Riviera Maya A.C.

www.rivieramaya.org.mx
International Hotel and Restaurant Association

87, rue Montbrillant, 1202 Geneva, CHE
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 Europe
Hotels & Motels in the United States

0071 - 0520 - 2014

Page | 31
APPENDIX
About MarketLine
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can absorb key facts in minutes, not hours.
What we do
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information today.
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methodology, ensuring a constant stream of new and accurate information is added to MarketLine every day.
With stringent checks and controls to capture and validate the accuracy of our data, you can be confident in MarketLine
to deliver quality data in an instant.
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Disclaimer
All Rights Reserved.
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The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that
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be incorrect.

0071 - 0520 - 2014

Page | 32
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MarketLine Industry Profile

Hotels & Motels in

Publication Date: May 2015

Mexico - Hotels & Motels

0071 - 0520 - 2014

Market value forecast

Market volume forecast

Mexico - Hotels & Motels

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Mexico - Hotels & Motels

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Country Data ............................................................................................................................................................ 28

Mexico - Hotels & Motels

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Mexico - Hotels & Motels

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Mexico - Hotels & Motels

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Mexico - Hotels & Motels

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Table 1: Mexico hotels & motels industry value: $ billion, 201014

Figure 1: Mexico hotels & motels industry value: $ billion, 201014

Mexico - Hotels & Motels

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Table 2: Mexico hotels & motels industry volume: establishments, 201014

Figure 2: Mexico hotels & motels industry volume: establishments, 201014

Mexico - Hotels & Motels

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Mexico - Hotels & Motels

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Rest of South America

Mexico - Hotels & Motels

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Mexico - Hotels & Motels

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Market volume forecast

Mexico - Hotels & Motels

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FIVE FORCES ANALYSIS

Mexico - Hotels & Motels

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Mexico - Hotels & Motels

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Mexico - Hotels & Motels

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Mexico - Hotels & Motels

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Mexico - Hotels & Motels

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Mexico - Hotels & Motels

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Mexico - Hotels & Motels

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6201 N 24th Parkway, Phoenix, Arizona 85016, USA

1 602 957 4200

SOURCE: COMPANY WEBSITE

Mexico - Hotels & Motels

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InterContinental Hotels Group Plc

Broadwater Park, Denham, Buckinghamshire UB9 5HR, GBR

44 1895 512 000

London, New York

SOURCE: COMPANY WEBSITE

Table 9: InterContinental Hotels Group Plc: key financials ($)