Hilton fans, rejoiceafter opening more than a hotel a day on average in 2023, the company is expanding even more rapidly this year. And with 24 brands designed to appeal to a wide array of customers, the growing Hilton portfolio offers more variety and price points than ever.
At The Art of the Hilton Brand event for trade media in Nashville the second week of May, Hilton CEO Christopher Nassetta estimated that this year Hilton will open more than two hotels a day across the globe, significantly boosting its 7,600-plus property count.
Hiltons Record-Breaking Growth
One in five [hotel] rooms under construction in the world bear a Hilton brand, said Nassetta. We will sign more deals in the world this year than we ever have in our 105-year history. We will start more deals under construction than in any year in our 105-year history. And we will open more hotels than any year in our history.
The growth illustrates hotel developers allegiance to Hilton at a time when development costs and interest rates are higher than in years past. Our brands just perform better than our competitors, said Nassetta. So when times get tougher, what happens with us is we take more marketshare.
Christopher Nassetta, president and CEO of Hilton (Photo Credit: Hilton)
About half of the new properties will be in the U.S., with mid-market brandsincluding Hampton, Homewood Suites, Home2 Suites and the new Spark by Hiltondominating the growth. The big growth story in the world is the mid-market, said Nassetta. Thats where the action is.
Creating Brands to Meet Market Demands
Yet Hilton is expanding its reach in all segments, with brands ranging from focused-service to luxury, from all-suite to extended-stay.
In March, Hilton purchased the university-themed Graduate Hotels, adding its 35-plus open and in-the-pipeline properties to its roster; and in April, Hilton purchased a controlling interest in Sydell Group with plans to expand the NoMad luxury brand beyond its flagship London location. NoMad brings Hiltons luxury brand lineup to five, including Waldorf Astoria, Conrad, LXR and Signia.
Most of Hiltons growth, however, has been organic, with the company creating brands to meet market demands. Pre-pandemic, we were known for the growth of Hampton, Homewood Suites, Hilton Garden Inn, Embassy Suites and our flagship, Hilton, said Matt Wehling, Hiltons senior vice president of development for the U.S. and Canada. But we also became known for growing our brand portfolio organically.
From 2014 to 2020, for example, Hilton launched such lifestyle brands as Canopy, Tempo and Motto; the upper-upscale Curio Collection and the upscale Tapestry Collection; and the focused-service Tru, one of the industrys fastest-growing hotel brands, with 260 properties currently open.
During and post-COVID, the lower mid-priced segment showed tremendous strength, said Wehling. So we collaborated with our owners and came up with Spark, which has been a tremendous success.
Latest Brand Rollouts: Spark and LivSmart Studios
Launched in January 2023, Spark is a conversion-only premium economy brand; owners bring existing hotels into the system rather than build new ones. With more than 30 hotels open, Spark has 200-plus properties in the pipeline. The 120-room Spark by Hilton Nashville at Opryland, for example, is slated to open in late summer after an extensive renovation that includes all new bathrooms.
A model guest room at the Spark by Hilton Nashville at Opryland, slated to open in late summer. (Photo Credit: Sara Perez Webber)
Another new brand, LivSmart Studios, was created because the midpriced extended-stay segment was performing incredibly well, said Wehling. Designed for an average length of stay of 20 nights or longer, the apartment-style LivSmart guestrooms feature spacious kitchen areas with full-sized appliances, plenty of storage and multipurpose furniture to fit guests needs. The first LivSmart Studios is slated to open this summer in Kokomo, Indiana.
A model of the LivSmart guest room shows the full-size kitchen appliances that are a brand standard. (Photo Credit: Sara Perez Webber)
Hilton works closely with existing ownerswho account for 75 percent of the companys new hotel developmentto create its brands. We dont just create a brand in a silo, said Bill Duncan, Hiltons global category head for focused service and all suites. For LivSmart, for example, the company conducted four rounds of research. Its about true partnership with owners and helping them help us design.
Travel advisors are another key constituency for Hilton. Theyre extremely important to us, said Duncan. Were always trying to figure out the best way to make us the easiest brand to book with.
Major Growth in Nashville
The Nashville market, which Nassetta considers one of the most dynamic in the U.S., epitomizes Hiltons growth and brand strategy. In the past 24 to 36 months, Hilton has opened over 1,800 rooms in Tennessees capital, with many more on the horizon.
Weve been able to populate a lot more brands into what I believe is now a major city that is being recognized around the world, said John Koshivos, Hilton vice president and managing director of development for the Southeast region. We see this as a great testing ground for all of our brands.
One of the most significant openings is the 298-room Hilton BNA Nashville Airport Terminal, which debuted in February and recalls Hiltons legacy as the pioneer of airport hotels. A covered pedestrian bridge connects the hotel directly to the terminal, while an expansive open-air rooftop terracecomplete with swimming pooland glass-enclosed Sky Bar offer panoramic views of the airports runways and downtown skyline.
The rooftop terrace at the new Hilton BNA Nashville Airport Terminal (Photo Credit: Hilton)
The second opening for the Tempo lifestyle brand, the 306-room Tempo by Hilton Nashville Downtown also debuted in February. The stylish property features wellness-oriented amenities, including five Wellness Rooms with Peletons; a Topgolf Swing Suite, where guests can practice golf and other games on simulators; and Tennessees first Bluestone Lane cafa brand standard for Tempo.
A standard king guest room at the Tempo by Hilton Nashville Downtown, which opened in February. (Photo Credit: Hilton)
Drawing on Nashvilles history as a printing hub, the 187-room Printing House Nashville Downtownslated to open this summerillustrates how Tapestry Collection properties exhibit a sense of place. The exterior of the property resembles a printing stamp, and property highlights include the rooftop Songbird Terrace & Lounge, featuring live music and craft cocktails.
A rendering of the rooftop lounge at the Printing House Nashville Downtown, slated to open this summer. (Photo Credit: Hilton)
Dual-Brand Hotel Trend
Nashville also demonstrates the increasing number of Hilton dual-brand properties. If dual-build were a brand, it would be Hiltons eighth-largest brand, said Duncan. It has just gone gangbusters.
A block from Music City Center is an example of Hiltons most popular dual-brand combination: the Home2 Suites by Hilton Nashville Downtown Convention Center and the Tru by Hilton Nashville Downtown Convention Center. The properties share such amenities as a lobby designed for socializing, with pool, foosball and shuffleboard tables; a breakfast room offering the specialties both brands are known for; and a pool and deck area with grills and firepits.
Youre actually catering to two different guests, said Andrew Harp, brand leader for Tru by Hilton. With Tru, youre appealing to that transient one-, two-night stay that the brand is perfect for, and Home2 can cater to the five-plus-night extended-stay business. For the sales team, its the perfect world.
Another eagerly awaited dual-brand property is slated to open in Nashvilles downtown Gulch neighborhood in January 2025, with a 181-room Canopy hotel and a 152-suite Homewood Suites. The hotels are connected by the back of the house only and will share a fitness center. Highlights include an expansive rooftop bar and restaurant specializing in mezcal that Koshivos predicts will be far and away the best rooftop experience in the city of Nashville.
A rendering of the rooftop bar at the Canopy by Hilton Downtown The Gulch, expected to open in January 2025. (Photo Credit: Hilton)
More to Come in Nashville and Beyond
Expect to see more significant announcements from Hilton in the year ahead. As the Waldorf Astoria brand expands its presence in such destinations as Dubai, Costa Rica and Miami, for examplewith the flagship Waldorf Astoria in New York expected to reopen late this yearwere still working on potentially a Waldorf Astoria in Nashville, noted Koshivos.
And building on recently announced partnerships with Small Luxury Hotels of the World and Autocampa luxury glamping experience with AirstreamsHilton is continually working on affording customers more ways to stay with us and more ways to keep them engaged and loyal, said Nassetta. Were excited, and were growing.
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