Hotel brand group Hilton has breached the milestone of 8,000 hotels open worldwide as it accelerates growth, reports THP.com in a newsletter.
Hilton Hotels has grown its portfolio past the milestone of 8,000 hotels opening and trading worldwide. For Hilton, the target was hit more than two years after achieving the previous milestone of 7,000 hotels after the group shifted its strategy to external additions and key partnerships. To date, Hilton has generally preferred to grow by devising and building its own new brands. Recent deals have not only helped grow portfolio numbers to the new target but also promise to keep the growth pace strong into the future.
A year of significant growth
“This has been a significant year for Hilton’s development, marked by strategic partnerships and acquisitions, and continued organic growth from our existing brands,” said Kevin Jacobs, Chief Financial Officer and President of Global Development at Hilton.
A partnership with Small Luxury Hotels of the World saw Hilton add new hotel inventory worldwide. A collection brand of independent luxury and boutique properties, SLH members have had the opportunity to be added to the Hilton distribution and loyalty programmes, an opportunity the vast majority have signed up for. For Hilton, these one-of-a-kind properties also broaden its international accommodation offering.
SLH has around 560 hotels in 90 countries. By early July, nearly 400 had joined Hilton’s international listings. Hilton expects to migrate further hotels over the coming months.
The group has also broadened its accommodation choices via a partnership with AutoCamp. This United States provider of nature escapes offers nights out in off-grid locations, with accommodation in various options from lodges to luxury tents and Airstream trailers. Across eight locations, some in national parks, guests can spend nights under the stars, enjoying the great outdoors.
.There have been acquisitions, too. In March, the group acquired the Graduate Hotels business, adding 35 properties after combining those already open and several signed signings. It is a US-oriented business, and the Graduate has already been seeking international growth, with additions to Oxford and Cambridge in the UK. With Hilton’s backing, the university town brand is set to expand globally, with the potential for as many as 500 Graduate hotels globally – further adding to Hilton’s upcoming pipeline growth opportunities.
Another boutique addition was the acquisition of the NoMad hotel brand. Initially, this comes with just one opened hotel, the brand’s flagship in London, but with opportunities to add further properties in key city centres over the coming months and years.
Building new brands
Hilton has also been busy devising additional brands to fill gaps in its portfolio. Spark by Hilton was launched as a premium economy brand to appeal to a market segment where the group had little representation. Since launching in the US, the brand has opened its first hotels in Canada and the UK. Further European signings are being sought, with a confirmed opening coming up in Germany. Designed as a flexible brand ideally suited to conversions of existing hotels, a quick refurbishment means Spark can soon bring Hilton’s power to an underperforming budget hotel.
