Thursday, July 18, 2024

Hilton set to double lifestyle portfolio to 700 hotels in four years

With nearly 350 existing lifestyle hotels and another 350 expected to join the portfolio by 2028, Hilton (NYSE: HLT) is set to double its presence in the fast-growing lifestyle category in the next four years. The recent addition of Graduate Hotels and NoMad to Hilton’s portfolio, coupled with increasing guest and owner demand, has positioned the company to further accelerate lifestyle category growth. 

After adding more than 50 new lifestyle hotels and approving another 100 in 2023, Hilton anticipates opening more than 100 new hotels this year across its lifestyle brands, each designed to meet the increased enthusiasm from guests for distinct and localized travel experiences. This year will also mark the debut of Hilton’s 400th property in the category.

The accelerated growth will be supported by the addition of the Graduate and NoMad brands. NoMad’s flagship London hotel and more than 30 existing Graduate locations will be available on Hilton’s booking channels later this summer, in addition to new Graduate hotels that will open this year in Princeton, N.J. and Auburn, Ala.

“As we celebrate the 10th anniversary of Hilton’s entry into the lifestyle segment, we look ahead to even more rapid growth with a powerhouse line-up of brands that will meet the needs of developers and guests alike in some of the world’s most desirable locations,” said Kevin Jacobs, chief financial officer and president, global development, Hilton. “The recent addition of the Graduate and NoMad brands to our lifestyle and luxury lifestyle portfolio will accelerate our growth as we look for more opportunities to deliver the exceptional experiences guests want in the world’s top hotel destinations.”

NoMad to Drive Luxury Lifestyle Category Growth

Earlier this year, Hilton announced plans to expand the NoMad luxury lifestyle brand from its existing London flagship location to high-end markets around the world. NoMad, a meticulously designed brand defined by exceptional food and beverage, captivating interior design and exemplary service, will bring Hilton travelers a new sophisticated option for luxury stays in some of the world’s greatest locations. 

Andrew Zobler, founder and CEO, Sydell Group, continues to lead the NoMad brand with responsibility for design, branding and hotel management while Hilton is leading future development. Over the last decade, Zobler and his team have created seven dynamic lifestyle brands, with award-winning hotel concepts including NoMad, The Line, Freehand and The Ned. Sydell will be responsible for design, branding and management of the NoMad brand while Hilton will lead all development.

Hilton Introduces New Global Lifestyle President

Hilton also has appointed Kevin Osterhaus as president, global lifestyle brands to steward the growth, design and development of the Canopy by Hilton, Curio Collection by Hilton, Graduate by Hilton, Motto by Hilton, Tapestry Collection by Hilton, and Tempo by Hilton brands. 

Osterhaus joins Hilton from Graduate Hotels, where, as president, he oversaw all aspects of global operations and marketing for the company’s portfolio, which includes more than 30 properties across the United States and the United Kingdom. Kevin developed his expertise in creating memorable guest experiences through his extensive background in the hospitality industry marked by leadership roles at Ennismore International, The Hoxton Hotels, SIXTY Hotels, and Standard International. Additionally, he played a pivotal role in the Bunkhouse Group’s growth.

“We are excited to welcome Kevin and benefit from his extensive experience in the increasingly important lifestyle category,” said Chris Silcock, president, global brands and commercial services, Hilton. “Kevin will oversee the seamless integration of the Graduate brand into our lifestyle portfolio to ensure we maintain and accelerate what has made Graduate a fan-favorite with guests, as well as lead the strategic vision for all of Hilton’s lifestyle brands.” 

“Hilton’s lifestyle brands are aspirational, design-led, and experiential with authentic points of view reflected in every aspect of the stay,” said Kevin Osterhaus, president, global lifestyle brands, Hilton. “I look forward to building on the category’s success and continuing Hilton’s commitment to pushing the boundaries of what it means to be a lifestyle brand.”

Hilton’s growing portfolio of lifestyle brands now includes:

Canopy by Hilton

Blending sophisticated design with crafted touchpoints that celebrate the best of the neighborhood, Canopy by Hilton offers an inviting and locally inspired boutique hotel experience. This year, the brand opened its first resort property with Canopy by Hilton Seychelles, positioning the brand’s expansion into high-value leisure destinations with additional resorts planned in Okinawa, Japan; Bozeman, Montana; and more. Canopy by Hilton – which celebrates its 10th anniversary in 2024 – signed six new hotels in the first quarter, including two new countries in Greece and Malta, and will debut in Japan this year.

Curio Collection by Hilton

Curio Collection by Hilton provides immersive, one-of-a-kind experiences in the world’s most sought-after destinations. Expanding from 34 countries in 2022 to 40 countries by mid-2024, the brand’s growth highlights its appeal in diverse markets, offering guests bespoke and elevated adventures in key urban and resort destinations. Celebrating its 10th anniversary, the brand plans to open nearly 30 new properties this year. Keight Hotel Opatija, Curio Collection by Hilton marks the brand’s debut in Croatia and its 40th country milestone. Additional first-in-country entries in 2024 include Grand Hotel Vilnius in Lithuania and Kwetu Nairobi in Kenya; the soon-to-open Zemi Miches All-Inclusive Resort in the Dominican Republic; and nine first quarter signings in new markets such as Romania, Thailand, and Mykonos poise the brand for continued growth. 

Graduate by Hilton

In a strategic move to enhance market reach and diversify its offerings, Hilton has welcomed Graduate Hotels into its lifestyle category. This addition brings a unique blend of collegiate charm and nostalgia, targeting key customer segments that seek localized travel experiences. The brand currently has a portfolio of more than 35 properties open or in the pipeline, with Graduate Princeton and Graduate Auburn scheduled to open in 2024. With thousands of colleges and universities around the world, the addressable market for the Graduate brand is 400-500 hotels globally. 

Motto by Hilton

Featuring flexible spaces and dynamic design inspired by the location, Motto by Hilton connects guests and locals to the center of it all. The brand continues expanding its footprint, most recently debuting in South America with Motto by Hilton Cusco. With robust expansion plans, Motto by Hilton is set to be in 10 countries by 2026, further cementing its position as a global player in the lifestyle hotel segment. As the first hotel of its kind in Asia, Motto by Hilton Hong Kong Soho will debut in late 2024 and the brand will also expand into Bentonville, Arkansas, later this year.

Tapestry Collection by Hilton

Each Tapestry Collection by Hilton property boasts a unique and vibrant personality crafted through elevated design and locally inspired food and beverage, offering guests authentic experiences in diverse destinations. After celebrating its 100th opening in 2023, the brand is now on track to reach its 150th opening this year. With a strong pipeline of more than 100 properties, showcasing significant expansion in the independent hotel segment and market penetration, especially through conversions, Tapestry is expanding in high barrier-to-entry markets in Europe where small boutique properties are looking for an engine to help them grow. A number of first-in-country milestones are slated for the brand, with openings planned in Thailand, Paraguay and Türkiye. Later this year, the first Hilton in Bermuda will open with Bermudiana Beach Resort, Tapestry Collection by Hilton.

Tempo by Hilton

With a stylish, contemporary experience tailored to the needs of active, ambitious travelers, Tempo by Hilton features purposefully designed guest rooms, wellness-focused amenities, and balanced food & beverage options to empower guests to maintain their routines and thrive. Tempo by Hilton is rapidly expanding its footprint with recent and upcoming openings in Times Square, Nashville, Louisville and Raleigh, and expects to have approximately 30 hotels open by 2026. 

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