michelin Expands Beyond Tires, Restaurants & Hotels with New Rankings
The Michelin Guide, renowned for its restaurant stars and now its hotel “keys,” is continuing its evolution beyond its origins as a tire company promotional tool. Michelin CEO Florent Menegaux highlighted the group’s growing influence, noting its ownership of Robert Parker Wine Advocate (acquired in 2019), while emphasizing, “The michelin brand is much more powerful” and that the Parker brand would not be absorbed.
Originally facing difficulties in the early 2000s,the guide is now profitable and operates in 70 countries,having successfully transitioned to a digital presence alongside its traditional paper guide – though the paper guide is now a “negligible” part of the economic model. Today, Michelin’s revenue streams primarily come from partnerships (with 40 countries currently) seeking to promote their destinations and brands, and increasingly, from reservations.
Michelin’s foray into hotel reservations began with the 2018 acquisition of Tablet Hotels, a specialist in luxury and charming accommodations, and launched fully in 2024. This expansion lead to the creation of the Michelin Keys, the guide’s first hotel ranking system.A first French selection was presented in April 2024, and the guide will unveil its first global hotel rankings this Wednesday.
Like restaurants, hotels are evaluated by anonymous inspectors. Those distinguished by Michelin can opt to utilize the guide’s reservation system, which is also open to accommodations without a Michelin Key. The guide charges a commission of 10-15% on reservations, a rate Gwendal Poullennec states is “lower than what the major hotel reservation platforms practice,” and more lucrative than restaurant reservations through platforms like The Fork or opentable.
The rankings are also strategically designed to bolster the guide’s reservation system, though Michelin stresses maintaining “tightness” between its sales and selection teams. Julianna Twiggs explained that partnerships with countries – like the new one with saudi arabia, set to receive its first restaurant selection at the end of the year – are established “when the local culinary scene is considered mature enough,” and can include accommodations as well.