In the last 12 months, Hilton has emerged with an ambitious expansion strategy, the brand has managed to open doors to one new hotel daily worldwide, and boasting 127 new properties in the fourth quarter alone. This remarkable growth demonstrates a resurgence in the industry post-pandemic, leveraging Hilton’s brand recognition to seal deals and open new avenues for expansion. Interview with Nick Smart
Brand Recognition: The Cornerstone of Development
Hilton's leverage lies in its storied name, a beacon of global hospitality. Brands under its umbrella such as Double Tree, Hilton Garden Inn, and Hampton by Hilton, enjoy instant recognition even in regions sparsely populated with their hotels. This brand equity is not just a testament to Hilton's legacy but also a strategic tool for expansion, especially in markets ripe for hospitality investments.
Tailored Growth: Niche Markets and New Brands
Europe has witnessed a Hilton surge with a strategic focus on its brand Double Tree and Hilton Garden Inn. The introduction of Home2 Suites and the newly unveiled Spark by Hilton targets untapped market segments, offering extended stay options and venturing into the premium economy space. Furthermore, lifestyle brands such as Curio and Tapestry offer a unique proposition – marrying individual hotel charm with Hilton’s robust system.
Strategic Expansion: Conversions and New Builds
Hilton’s growth narrative extends beyond new properties to include strategic conversions. Converting office spaces, historical cinemas, and even power stations into hotels has become a part of Hilton’s innovative approach to expansion, especially as offices and department stores worldwide are reimagined in the face of changing commercial realities. Nearly 20% of the hotel real estate investment in the UK is in office conversions, highlighting a trend that Hilton is capitalising on.
Economic Resilience: Attracting Institutional Investment
The hospitality sector, once a niche in the property market, has now become a recognised asset class, resilient even in the face of unprecedented economic challenges. Institutional investors, including private equity firms and pension funds, are now eyeing hotel investments with increased interest, acknowledging the industry’s robust comeback post-COVID-19 and the ever-growing potential of hotel branding.
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