Aerial view of the Hilton Hotel, San Diego Bayfront, located in downtown San Diego shot from an … [+] altitude of about 800 feet during a helicopter photo flight.
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On the heels of the big announcement that Hilton will acquire the boutique Graduate Hotels brand of properties in American college towns, Hilton shows no signs of slowing down. Record growth is fueling the largest pipeline of new hotels in its history, and the hospitality giant is adding new brands to its portfolio to fill gaps where it sees strong potential.
With over 1.1 million hotel rooms, Hilton will see 5.5-6% growth in worldwide rooms, notes Smedes Rose, director, REITs & lodging for Citi.
Canopy by Hilton Philadelphia Center City
Davidson Hotels
The hospitality landscape is competitive, and companies must evolve to meet the demands of general consumers as well as their primary customer, the hotel buyer or management company. This was never more evident than during the pandemic when many people not only changed how they travel, but also why and with whom.
During that time, all major brands placed an emphasis on cleanliness, but Hilton used data from its series of annual trend reports to lean into new trends.
Hilton Tulum Riviera Maya All-Inclusive Resort is the largest property for the Hilton family in the … [+] Caribbean and Latin America.
Hilton
“Hilton took over the innovator role,” said Bernadette Molnar, regional director, operations for Davidson Hotels, which operates numerous Hilton hotels under various brands. “In 2020, they were the first to introduce a comprehensive plan with full procedures for cleaning, and supplies were available almost immediately.”
Molnar believes this mentality also led Hilton to see how people were traveling differently and adapt to it. The Home2 Suites by Hilton brand, for example, became the first extended stay hotel group to go pet-friendly at all of its properties in the United States and Canada. Traveling with pets was always important for a subset of travelers, but the pandemic elevated its importance considerably.
Whether traveling for leisure or remote working, bringing pets along has become one of the biggest … [+] trends for hotels in recent years.
Hilton
Since then, numerous other Hilton brands joined it to become all pet-friendly. They include Canopy by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Spark by Hilton, LivSmart Studios by Hilton and Homewood Suites.
Select service brands also led the market with people looking for affordable options without extra frills. Hilton doubled down on this segment with its Hilton Garden Inn and Hampton by Hilton brands while also adding new names to the market.
Hilton Garden Inn San Jose Airport City Mall team members celebrate the 1,000th opening worldwide … [+] for the brand.
Hilton
“Hilton continues to broaden its distribution, especially across the select-service segment of the market, where over 30% of hotels in the U.S. development pipeline are Hilton brands,” said Rose.
Big decisions always rely on hefty research. Hilton’s third-annual global survey used data from “more than 10,000 travelers from nine countries, online video diaries with 60 U.S. travelers” to delve deeper into what drives consumer decisions.
Record growth catapults the company Hilton Okinawa Miyako Island Resort is one of the brand’s newest openings in Japan.
Hilton
After a record-breaking fourth quarter of 2023, Hilton announced it had opened more rooms than any other quarter in its history (around 24,000 in 132 hotels). Further positioning its growth strategy, it had reached its largest-ever development pipeline (nearly 3,300 hotels and representing more than 462,000 hotel rooms). In 2023 alone, it added 1,000 hotels, up 45% from the year prior, to its pipeline while also adding two new brands (Spark by Hilton and LivSmart Studios by Hilton) to its portfolio.
According to Hilton, approximately one out of every five hotel rooms under construction in the world is part of the Hilton family.
The rooftop bar and lounge at Hilton Okinawa Miyako Island Resort in Japan.
Hilton
For more than 100 years, the Hilton name has been a centerpiece for American hospitality. Now, with 7,500 properties encompassing almost 1.2 million rooms in 126 countries and territories, it must place new emphasis on meeting expectations.
Like other major brands, Hilton is aiming for growth in emerging markets and those with strong domestic travel markets, too (like India, Japan and China). When it comes to the Asia-Pacific region in general, 77% of travelers Hilton surveyed said they are looking to regional destinations where they can better understand cultural links or ancestral heritage.
For example, recent openings in Japan include the DoubleTree by Hilton Kyoto Station and Hilton Okinawa Miyako Island Resort, considered the “Hawaii” of Japan. The latter caters to an almost entirely domestic market, a symbol of how the Hilton name is a trusted luxury and hospitality name.
The rooftop chapel at Hilton Okinawa Miyako Island Resort in Japan
Hilton
In fact, Hilton hotels are popular with Japanese and Korean travelers. There are six Hilton family hotels in Okinawa prefecture alone, each with their own chapels that host hundreds of weddings.
In India, the brand is in 15 markets currently with plans to expand to 75, according to a recent Skift interview. A focus for Hilton is broadening its base of brands from luxury to select service in the top ten markets while also growing in secondary and tertiary ones. Top of mind are big brands like Waldorf Astoria and Conrad on the luxury end and its tried-and-tested Hilton Garden Inn name. This follows the country’s upward economic trajectory and recent expansion of air service from far-flung markets.
Other areas of growth for Hilton include Saudi Arabia where it has more than 60 properties in the works with brands like LXR Hotels & Resorts, Canopy by Hilton, and Embassy Suites by Hilton in the coming years. Almost three dozen hotels are in the pipeline for Turkey, which will give it more than 100 properties in total.
A rendering of the new Hilton Shanghai Jing’an to open in 2025 in the Shibei Hi-Tech Park of Jing’an … [+] District.
Hilton
In China, Hilton Shanghai City Centre will open soon, and the Motto by Hilton Hong Kong Soho will be the first for the brand in Asia. Africa is another focus region with Kwetu Nairobi becoming the first Curio Collection by Hilton in Kenya and Canopy by Hilton coming to the Seychelles. Kinshasa will see the opening of a new Hilton in the coming year, too.
Premium economy and long-stay brands lead the pack, but all-inclusive on the rise A rendering of the new LivStudios by Hilton guest room
Hilton
Already of growing importance, but accelerated by the pandemic, the premium economy sectors and those focused on extended-stay travelers are seeing a boom. A recent Vacasa study found that 84% of U.S. travelers are changing their travel behaviors to become more budget-conscious with nearly half of travelers this season looking to travel somewhere entirely within their budget.
But, that doesn’t mean that people are not still looking to travel. Hilton’s data showed that 64% of the global travelers it surveyed would be willing to reduce expenses in other areas to allow them to still travel, especially in the Gen Z and Millennial categories who actually admit they would spend more than they have in the past in 2024.
A guest room mockup for the new Spark by Hilton brand.
Hilton
According to Hilton 43% of the U.S. hospitality industry is made up of economy properties, and 68 million people stay in them. This led Hilton to find ways to elevate the offering with its new Spark by Hilton brand while staying within the cost structure that owners value.
The new LivSmart Studios by Hilton caters to guests that typically stay at least 20 nights in one place. According to Kevin Jacobs, CFO and president, global development, the brand is designed around the expanding “$300 billion workforce travel market,” who he refers to as the people who never stop traveling, even during the pandemic.
A rendering of the exterior of a new LivSmart Studios by Hilton property
Hilton
Jacobs highlights how hotel owners will appreciate that the majority of the property footprint is devoted to apartment-style accommodations. This decision, the result of research and input from owners, reduces overhead costs for owners while putting the spotlight entirely on guests by giving them space. There is no food and beverage service, but guests will have ensuite kitchens. Jacobs envisions this brand will eventually reach more than 1,000 locations.
Designing a new brand is no simple task, but once again, Hilton relied on research of both its own customers and those of other brands to develop the concept. Its studies showed that 96% of Hilton Honors members said they would be more likely to stay with Hilton’s new brand for a long stay while 93% of non-Hilton Honors guests also agreed.
Caribbean and Latin American growth, especially all-inclusive Mangrove Beach Corendon Curacao All-Inclusive Resort, Curio by Hilton
Hilton
With remote working a popular practice, hotels are also catering to the needs of those planning to work and play at the same time. This means having the space to spread out or cook in a guest room at an extended stay property can come in handy. Alternatively, an all-inclusive means all the cooking is done for you.
Last year, Hilton opened 19 new hotels representing around 4,000 rooms in the Caribbean and Latin America, which is the most in the company’s history. This includes Hilton making a big comeback to Cancun’s hotel zone with the opening of Hilton Cancun Mar Caribe All-Inclusive Resort. Not far is Hilton’s largest property in the entire region, the 735-room Hilton Tulum Riviera Maya All-Inclusive Resort. Curacao and Dominican Republic also welcomed new all-inclusives from Hilton.
Families love all-inclusive properties for the simplicity of finding food and beverage offerings.
Hilton
All-inclusives are not just a focus for bargain hunters or those that want to spend all their time on property. Group travel and the meetings and incentive industry are also taking notice. Hilton’s all-inclusive group bookings increased by double digits year-over-year in the most recent comparison, which is also the result of so many new openings.
Want to know who else agrees with all-inclusive resort popularity? Those with loyalty points to redeem. Of the top 100 Hilton Honors redemption hotels outside the U.S., six of them are all-inclusive properties. Hilton says that the number of members saving points for all-inclusive properties is also on the uptick.
The colorful lobby of the Tru by Hilton Criciuma in southern Brazil
Hilton
Another milestone: the 1,000th Hilton Garden Inn worldwide opened witn its 1,000th hotel worldwide with the opening of Costa Rica’s Hilton Garden Inn San Jose Airport City Mall. Tru by Hilton also had a breakout year with 10 new signings in the region. Hotels are coming to Argentina, Chile, Colombia, Costa Rica, Dominican Republic, Honduras and Puerto Rico among other places.
Health and wellness is here to stay All U.S. Hilton properties now boast at least one Peloton bike.
Hilton
Travelers want to continue their daily routines when they travel, according to the trend report. In 2022, Hilton doubled down and committed to add Peloton bikes to each of its 5,400 U.S. hotels (this includes all brands from Hampton by Hilton to Waldorf Astoria), and one year later, it added this guarantee to all hotels in Puerto Rico, Germany and the United Kingdom.
This comes as no surprise following research by Hilton that showed an overwhelming majority of guests prioritized wellness when they travel, and of those surveyed that are Peloton users, 90% would choose a hotel that had a Peloton bike. This partnership, according to many industry insiders, is what led to the development of the Tempo by Hilton brand, which leans heavily into the health and wellness mindset.
Tempo by Hilton Times Square New York is the brand’s flagship, and all hotels have guest rooms with … [+] in-room workout equipment.
Hilton
Hilton properties have the freedom to develop unique offerings in their market. It’s not just exercise. The alcohol-free trend has made its way to the new Tempo by Hilton brand where bars have a dedicated menu of “free-spirited” cocktails for non-tipplers. That’s quite ironic for Hilton since it is the birthplace of the Piña Colada, created in 1954 at the Caribe Hilton in San Juan, Puerto Rico.
Sleep is another key element, and like other hotels, many Hilton family hotels have pillow menus. But, some hotels have gone further like the vegan pillow menu available at the Hilton London Bankside to pay attention to different lifestyle preferences.
Hilton Garden Inn Faroe Islands is the only major international brand in the region.
Hilton
Wellness goes beyond ourselves, but also to others and the environment as a whole. Hilton committed to adding 20,000 universal wall chargers for electric vehicles at nearly 2,000 hotels by next year. And all newly built Embassy Suites by Hilton and Home2 Suites by Hilton properties must have electric charging stations when they open. This seems fitting since Hilton Hilton Vancouver, Washington was the first hotel in the world to earn both LEED and Green Seal environmental certifications.
Then, there is the Hotel Marcel New Haven, Tapestry Collection by Hilton, which is the first Passive House-certified hotel in the country. It is a zero-emission hotel using 100% renewable electricity produced on-site for property functions. Of the 5,600 buildings around the world to earn this accolade, only 140 are in the U.S. These buildings must use a mix of energy efficiency with passive solar and internal heat to lower space heating demands.
Following the outdoors trend Guests can earn and redeem points when staying with AutoCamp.
Hilton
Hilton is looking to meet customers where they want to spend their time and money, something that is evolving constantly from urban destinations to the great outdoors.
This takes place through numerous partnerships such as the recent connection with AutoCamp, an outdoor hospitality brand that goes beyond “glamping” luxury tents to include AirStream rentals and cabins in famous national parks like Zion in Utah and Joshua Tree in California. It gives the brand access to customers that want more than just a traditional hotel.
With the uptick in visits to national parks one of the big travel wins during and following the pandemic, Hilton demonstrates a creativity that gives it access to potential new customers that were only considering outdoor activities as well as providing something that their existing customers were seeking. It goes beyond the traditional residences and vacation homes that other brands. These stays, which cater to the needs of travelers “craving adventures,” will be bookable through Hilton’s reservation channels.
Hotel Excelsior Dubrovnik will be part of the new partnership between Hilton Honors and Small Luxury … [+] Hotels of the World.
Adriatic Luxury Hotels
“This is the first time a major hospitality brand and outdoor lodging company have come together in this way,” says Chris Silcock, president, global brands and commercial services, Hilton.
Similar to a hotel, each location will have a central clubhouse and food and beverage facility plus grab-and-go food items. Also available will be things like swimming pools, communal fire pits, hiking trails and other potential activities in addition to meeting space for groups. It’s a bridge between traditional resorts and glamping accommodations, and of course, Hilton Honors earning and redemption plus some yet-to-be-announced perks are also available.
A focus on family needs Guaranteed connecting rooms has quickly become a brand hallmark.
Hilton
Erasing the irritants and worries of travel is a key component for families when they travel. Hilton was the first brand to introduce guaranteed connecting rooms, once an option by hotels only confirmed closer to the arrival time. It allows families to know from the moment of making a reservation that there will be a connecting door.
This was actually a perk first introduced by the Motto by Hilton brand, but quickly expanded to the entire global portfolio following the implementation of technology that allows guests to confirm the actual connecting room pair in advance.
Hilton was also the first to introduce real-time floor maps of the hotel giving guests the ability to pre-assign their room on the floor (and particular area) of their choice. For example, families traveling with infants may prefer to be far from elevators or on a high floor in case there is excess noise. According to Hilton’s trend report data, 20% of guests prefer a room away from the elevator or high-traffic areas.
Loyalty programs grow in importance Hilton Moorea, Society Islands, French Polynesia, Pacific
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Hilton Honors has more than 180 million loyalty program members who can earn or redeem points at hotels as well as via its co-branded credit cards. Travelers are traditionally looking for out-sized value when redeeming points. This can include making a redemption at a luxury hotel for a unique experience.
Hilton’s recent announcement to partner with Small Luxury Hotels of the World opens the door to 560 locally owned and boutique hotels in 90 countries. It also exposes the Hilton Honors program to a new subset of customers that may not have belonged to it previously. Customers can reserve directly through Hilton’s reservation channels to enjoy benefits tied to the loyalty program, including elite status perks. This is one way members can achieve strong value from their points.
Members can redeem points to attend a Chelsea FC training session and meet the players.
Hilton
Another comes from the Hilton Honors Experiences platform that allows members to bid their points on things they cannot easily purchase elsewhere. This ties into post-pandemic interest in once-in-a-lifetime experiences that you don’t want to wait any longer to enjoy. Guests can use their points to enjoy activities in partnership with Live Nation, McLaren Racing and DP World Tour among many others.
From tickets to the Country Music Awards to race car experiences at the Miami Grand Prix, it proves that miles and points are a valuable currency worth collecting. Hilton seems to realize that its loyalty program base is the fuel to its success, especially when it comes to new brands and locations.
