Hilton Hotels has grown its portfolio past the significant milestone of 8,000 hotels open and trading worldwide.
For Hilton, the target has been hit a little more than two years after achieving the previous milestone of 7,000 hotels, after the group shifted strategy to external additions, and key partnerships. Hilton has, to date, 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 have the promise of keeping the growth pace strong into the future, too.
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, global development, Hilton.
A partnership with Small Luxury Hotels of the World saw Hilton add a wide variety of new hotel inventory from around the world. A collection brand of independent luxury and boutique properties, SLH members have had the opportunity to be added into the Hilton distribution and loyalty programmes, an opportunity the vast majority have signed up to. For Hilton, these one of a kind properties also broaden its international accommodation offering.
SLH has in total 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 US provider of nature escapes offers nights out in off-grid locations, with accommodation in a range of options from lodges to luxury tents and Airstream trailers. Across eight locations, some in national parks, guests have the opportunity to 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, when combining those already open and a number of committed signings. To date largely a US-oriented business, Graduate had already been seeking international growth with additions in Oxford and Cambridge in the UK. Now, 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 being launched in the US, the brand has now also 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.
