The hotelier is celebrating its centennial. But it is not resting on its laurels as it already prepares for the future by maintaining steady growth in the years to come.
In balance sheets for the second quarter 2019, Hilton forecast net profit up +20% and EBITDA up by +11% over the same period last year. Metrics are in the green, allowing it to maintain intensive growth.
28,100 new rooms were approved for development during the second quarter, bringing the development pipeline to approximately 373,000 rooms as of June 30. The group opened 123 new properties for 17,100 rooms in the second quarter for 15,700 net growth in rooms. This growth is driven by the new units in the Asia-Pacific region as well as by the Hampton by Hilton brand that is developing on a global scale.
Asia Pacific, new lands for expansion
In addition to the luxury segment where Hilton is accelerating growth in 2019 more than ever, Hilton developing each of these brands in the region, whether with Hilton Hotels & Resorts, DoubleTree by Hilton, Curio Collection by Hilton, Hampton by Hilton, Hilton Garden Inn or Canopy by Hilton.
Alan Watts, president of the Asia-Pacific region at Hilton, declares:
Looking at the volume of new hotels signed, we've had our best ever start to the year from a development standpoint. The continued rise in travel across the region from the growing middle class, coupled with ongoing investment in infrastructure, makes the hotel industry a very attractive investment.
For example, openings scheduled for 2019 include Canopy by Hilton Hangzhou Jinsha Lake, Hilton Goa Resort, DoubleTree by Hilton Napier Hotel and Suites, DoubleTree by Hilton Bangkok Ploenchit, DoubleTree by Hilton Phuket Banthai Resort and Hilton Garden Inn Jaipur.
Matt Fry, Senior vice president development in the APAC zone:
The appetite for our brands in Asia Pacific remains very strong and we're delighted to be strengthening our presence in several key locations, as well as pioneering first market entries in new destinations.
The focus is very much on China, which will see its 100th Hampton by Hilton open on its territory this year. This brand has no fewer than 260 hotels under construction in China, for 40,000 rooms that will soon open on this market. Although it has been established there only since 2015, Hampton by Hilton posted annual growth by 180% in the Middle Empire, with the most recent examples to date being Hampton by Hilton Changsha South Station and Hampton by Hilton Guangzhou Dongxiaonan.
Hampton by Hilton, the group's growth engine?
The mid-range brand has just opened its 2,500th hotel, marking its arrival in Peru with Hampton by Hilton Lima San Isidro. A testament to the brand's good health: it is expanding constantly worldwide.
The franchise has already blown out its 35th candle and relies on a model that is easy to deploy, justifying its rapid development. It claims 700 properties in 27 countries worldwide for a total of 260,000 rooms (source: Hilton).
Shruti Gandhi Buckley, Global Head Hampton by Hilton, explains:
The opening of Hampton’s 2,500th property demonstrates the brand’s winning growth strategy, based on three core pillars: commitment to delivering unparalleled customer service, category leading product and amenity innovation, and Hilton’s ongoing investment in the brand.
Whether it is in Latin America with Hampton by Hilton Antofagasta in Chile, Hampton by Hilton Guarulhos Airport in São Paulo in Brazil, the Hampton by Hilton Bariloche in Argentina and the Caribbean, Hampton by Hilton is developing throughout Central and South America. It targets a total of 15 properties with 1,750 rooms by 2022.
As far as North America is concerned, Hampton by Hilton is already well established with no fewer than 2,250 properties (source: Hilton) throughout the United States, Canada and Puerto Rico. The 300 hotels in the pipeline include the Hampton Inn & Suites by Hilton Beauport in Quebec, the Hampton Inn & Suites by Hilton Atlanta Decatur/Emory, the Hampton Inn & Suites by Hilton San Diego Airport Liberty Station and the Hampton Inn & Suites by Hilton Snoqualmie in Washington.
As for Europe, the brand recently opened two properties: Hampton by Hilton Paris Clichy, in France, and Hampton by Hilton Antwerp Central Station, in Belgium. In order to accelerate growth in the EMEA region, Hilton partnered with Alshaya Group to produce 70 new units in nine countries in the Middle East, North Africa and Russia, where the first should open in 2021.
Already signed up? Already signed up? Already signed up? Already registered? Login here!