Fairmont Raffles - Competitors

Fairmont Raffles Competition

Now Viewing Fairmont Raffles's competition in: Hotel and Motel - Lodging (primary)

Recent Developments

China Proves Fertile Market for Chains - China is rapidly becoming a major market for US hotel chains with international aspirations. Recently, Starwood, which owns such chains as Sheraton, announced a major expansion in China of 30 new hotels within three years. Though rapid growth in the Chinese market is part of the reason Starwood is expanding there, it's also part of a larger strategy to hedge against predicted losses in the US because of nationwide economic woes.

Unclear Market Signals Characterize 2008 - Amid US economic uncertainty, several major hotel chains recently revised earnings estimates, and Wall Street analysts are doing the same. Despite claims that luxury hotels continue to perform well, firms such as Marriott International, Starwood, and Host Hotels & Resorts scaled back 2008 RevPAR (revenue per available room) estimates. The revised estimates, according to some analysts, signal weaker earnings for hotels in coming months.

Building Recycling Popular - Hotel organizations often look to new construction for expansion, but a relatively recent trend has many firms looking to recycle older buildings instead. The trend began in the early 1990s, but has gained steam in recent years, with projects ranging from converting an old prison in Boston to a YMCA in San Francisco into luxury accommodations. Renovators try to preserve historic details, and include whimsical touches that remind visitors of the historic nature of the properties.

Competitive Landscape

Demand is driven by business and tourist travel, which are closely linked to the state of the economy. The profitability of individual companies depends on efficient operations, since many costs are fixed, and on good marketing. Big companies have economies of scale in operations, can more easily raise capital and have strong name recognition. Small companies can compete effectively through favorable locations and specialty services. The industry requires large amounts of capital but operations are labor-intensive: average annual revenue per employee is only $65,000.

Full Industry Overview For Hotel and Motel - Lodging

Hotel and Motel - Lodging Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US hotels, rooming houses, camps, and other lodging is forecast to grow at an annual compounded rate of 3.7 percent between 2007 and 2012.

Hotel, Lodging Services Growth Flat

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.