Global Hotel Alliance (GHA), which operates a loyalty program for around 40 independent hotel brands, reported significant growth in the third quarter. This growth was seen across key performance metrics, showcasing a strong performance by many independent hotels aside from those belonging to major hotel groups. Brands such as NH Hotels, Viceroy, and The Leela Palaces, Hotels and Resorts are part of the GHA Discovery loyalty program, with members able to redeem rewards at over 800 hotels.
For the first nine months of the year, total revenues at GHA’s hotels increased by 15% year-over-year to $2 billion. This growth was attributed to a 16% increase in room nights, indicating that the growth was not solely due to rate hikes. The majority of bookings came from Americans traveling internationally, reflecting a strong demand for independent hotel brands. Additionally, redemptions in the loyalty program increased by 95% year-on-year, showing the value members find in the program.
Many independent hotel brands join GHA to drive more direct bookings as they receive a smaller portion of their bookings directly compared to bookings through online travel agencies (OTAs). In the third quarter, member hotels saw a 40% increase in direct bookings compared to the previous year. This shift towards direct bookings allows hotels to reduce reliance on OTAs and their associated high commissions, leading to increased profitability for the hotels.
In terms of regional performance, Spain led total room revenues from both domestic and international stays, followed by Thailand, Italy, Singapore, and the UAE. Thailand’s properties were particularly successful in attracting international guests, with 93% of room revenue coming from cross-border stays. American travelers were the primary source of bookings worldwide, indicating a strong demand for independent hotels within the GHA network.
The Global Hotel Alliance continues to attract new hotel brands, with four new additions in the last month including Unike Hotels in Norway, Sunway Hotels & Resorts in Malaysia, Andronis in Greece, and Paramount Hotels in the UAE. This growth reflects the appeal and momentum of the GHA platform for independent hotel brands looking to compete in the industry.
Overall, the success of GHA and its member hotels in the third quarter highlights the resilience and growth potential of independent hotel brands. By leveraging loyalty programs, driving direct bookings, and focusing on international markets, these hotels are able to compete with major hotel groups and OTAs while offering unique and personalized experiences to travelers. As the travel industry continues to evolve, independent hotels within GHA are well-positioned for continued success and growth in the market.
