Hilton has announced its new market focus with service brands at secondary destinations in Germany.
In 2019, Hilton’s 100th year, Hilton reported 123 new hotels in Q2 achieving net unit growth of 15,700 rooms after opening more than one property a day worldwide in 2018. In its Quarterly report of June 30, 2019, Hilton's development pipeline totaled nearly 2,490 hotels for approximately 373,000 rooms in 109 countries and territories, including 37 countries and territories where Hilton does not currently have any operational hotels. 201,000 rooms in the development pipeline were located outside the United States.
With 31 hotels under the Hilton, Hilton Garden, Waldorf Astoria, Curio, Hampton brands the group plans to accelerate strategic expansion in Germany with service brands. With hotels currently located in major German cities, Hilton now plans to expand its portfolio rapidly into secondary markets, including at airports, sporting arenas and exhibition spaces.
Ulrich Widmer, Managing Director Development Central Europe, Hilton remarked:
In recent years, we have seen Hilton's growth in Germany progress at an incredibly fast pace. Our portfolio spans five brands and we have a presence in every major German city. In addition to opening our luxury and full-service brands, we have identified that the market and investment environment is strong and supportive enough for Hilton to achieve further expansion through a focused approach to move into secondary markets.
Hilton anticipates that across Germany there are more than 100 potential markets for investors to partner with Hilton and that these markets are ideal for its focused service brands, Hampton by Hilton and Hilton Garden Inn. Since 2010 the group has already opened more than one Hampton by Hilton hotel each year in Germany and the momentum continues. In 2018, Hilton opened six Hampton by Hilton hotels and properties in Munich and Konstanz are set to open before the close of 2019.
While the group wants to grow all its bands and be everywhere its guests want them to be, Widmer further explains that:
...in response to the demand we have seen from both investors and guests for our mid-market hotels, the 2020 focus is to promote Hampton by Hilton and Hilton Garden Inn, and look to introduce to investors our latest product, Motto by Hilton. These properties are ideal for complementing airports, exhibition and events areas, sporting stadiums and other such enterprises. We've had great success in Europe partnering with developers to expand their offering through opening a Hilton hotel alongside infrastructure investments.
The German portfolio includes 12 Hampton by Hilton and five Hilton Garden Inn hotels. There are six Hampton by Hilton hotels slated to open in 2020; by the close of 2023, the group expects its portfolio will increase to 42 properties amounting to more than 10,000 rooms. Worldwide, Hilton claims properties across 17 brands offering nearly 6,000 properties and the Hilton Honors global loyalty program, which it says has more than 94 million members.