Deutsche Hospitality parent ups development rate

Imagery of House of Beats Hamburg courtesy of Winking Froh Architekten.
H World, the parent company of Deutsche Hospitality and Huazhu Group, has increased its pipeline properties across both of its main divisions over the last quarter.

As of 30 September 2022, the Chinese-based firm had 2,313 unopened hotels scheduled, a 3% rise from 2,236 at the end of the previous quarter.

Development by division

The vast majority are under the auspices of Huazhu, numbering 2,274 – again a 3% increase on Q2’s 2,199 prospective sites.

The Deutsche Hospitality pipeline, while orders of magnitude smaller, has grown by 5% from 37 to 39 hotels.

Brand breakdown

Upcoming midscale and upscale hotels totalled 1,324 properties within the Huazhu pipeline, a 58% proportion. This represents a huge 85% uptick from last quarter’s 1,125.

Breaking the overall pipeline down into individual brands, we see that in the upper midscale sector, Madison Hotels leads the way with 62 properties scheduled. The next three marques are very close together, with Mercure Hotels on 54, Crystal Orange Hotels on 53 and Manxin Hotels on 52. Intercity Hotels is further back on 24, while Novotel brings up the rear in this section with 18.

H World has the rights as master franchisee for Accor’s Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, in the pan-China region.

Upper segments

In the upscale segment, Blossom House takes the crown by a long chalk, with 52 sites to come. A way behind is Steigenberger Hotels & Resorts with 10, while Maxx is on seven, Grand Mercure has five, and both Jaz in the City and Joya Hotel have one each.

There are just four upcoming properties in the luxury sphere, divided three to one in favour of Song Hotels to Steigenberger Icon.

During the quarter

Within Q3 the-Huazhu business opened 429 hotels and closed a total of 204, while Deutsche Hospitality welcomed just one.

Latest signings included House of Beats Hamburg, a 263-key site under Deutsche Hospitality’s new House of Beats banner, scheduled to land in the German city in 2026; and the division’s debut in Uzbekistan, IntercityHotel Tashkent, adding 122 rooms to the portfolio in Q1 2023.

As it stands

Originated in China, H World Group Limited is a key player in the global hotel industry. As at the end of Q3 2022, H World operated 8,402 hotels with 797,489 rooms throughout 17 countries, including 126 hotels from Deutsche Hospitality.

H World’s brands include Hi Inn, Elan Hotel, HanTing Hotel, JI Hotel, Starway Hotel, Orange Hotel, Crystal Orange Hotel, Manxin Hotel, Madison Hotel, Joya Hotel, Blossom House, Ni Hao Hotel, CitiGO Hotel, Steigenberger Hotels & Resorts, Maxx, Jaz in the City, IntercityHotel, Zleep Hotels, Steigenberger Icon and Song Hotels.