Hilton’s budget brand mastermind curiously set to depart the company
The developer of Hilton's two newest brands is leaving the company in 2024.
Hilton and its chief brand officer, Matthew Schuyler, "agreed that Mr. Schuyler would move to a short-term advisory role" with the company at the start of 2024 and should fully depart by the end of June, according to a company filing with the U.S. Securities and Exchange Commission.
The reasoning for the exit was not provided. It is notable since Schuyler played a pivotal role in creating the premium economy Spark brand, which company leaders frequently tout as on track to eventually be Hilton's largest brand by property count. But his CBO title also means he was overseeing the entirety of Hilton's brand portfolio, from Tru and Home2 Suites to Waldorf Astoria.
Schuyler first joined Hilton in 2009 as the company's chief human resources officer before being promoted to chief administrative officer in 2020. He has served as chief brand officer since March of 2021.
"We recently announced that Matt Schuyler, Chief Brand Officer, will be stepping down from his current role after 15 years with Hilton," a company spokesperson said in a statement to TPG. "During his tenure, Matt had an unmistakable impact on our success — laying the foundation for our best-in-class workplace culture as Chief Human Resources Officer and, in more recent years, leading our brand organization to new heights, including countless milestones and the launch of several new brands."
Why now?
The spokesperson did not give a reason for Schuyler's exit. It does come at a time when the industry puts increased focus on real estate background in the C-suite. Marriott CEO Anthony Capuano is widely seen as succeeding the late Arne Sorenson thanks to his prowess in development and dealmaking. The company's chief financial officer, Leeny Oberg, is now also executive vice president of development, as of February of this year.
Just last week, ex-JLL Hotels & Hospitality CEO Gilda Perez-Alvarado — a widely respected and influential voice in the hotel real estate orbit — was named CEO of Orient Express following an earlier career shift to being Accor's chief strategy officer (a position she'll maintain on top of the newer job atop the ultra-luxury brand).
Hilton CEO Chris Nassetta did not comment publicly on Schuyler's departure, but there was a memo to Hilton team members provided to TPG following the initial publication of this story showing Nassetta's company-wide well wishes to Schuyler that also signaled the departure as a corporate reorganization:
"As we look to 2024, we have an incredible opportunity ahead of us. Our award-winning brands continue to be the best in the business. Our commercial engine is delivering greater ROI than our competitors. And we continue to seize opportunities and grow share in the markets and brand categories where our guests want to travel, all while building on our recent standing as the #1 best place to work in the world. The result of these efforts is the strong growth and performance that is going to propel us into the next Golden Age of Travel.
To sustain this momentum, continue delivering on our industry-leading strategy, and meet the needs of an ever-changing world, we have to continue to be resilient and willing to evolve. That is why today, I am sharing the following organizational updates.
Effective January 1, we will reunite the Global Brand and Commercial Services team under the leadership of Chris Silcock who will take on the new role of President, Global Brand and Commercial Services. This combined team will strengthen connectivity across our Brand and Commercial organizations and ensure we achieve short-term performance while focusing on areas of long-term innovation.
As a result of these changes, Matt Schuyler will be stepping down from his current role and serve as an advisor over a transitional period. Over the past 15 years, Matt has had an unmistakable impact on our success – laying the foundation for our best-in-class workplace culture and unwavering commitment to talent development and, in more recent years, leading our brand organization to new heights, including countless milestones and the launch of several new brands.
On behalf of our Hilton family, I want to thank Matt for his partnership and many contributions over the years. He has been a friend and a counselor, and we look forward to his continued engagement throughout this transition.
Please join me in thanking Matt and congratulating Chris as he takes on these new responsibilities. I am confident that with this new structure, we will enable even stronger performance and greater alignment as we move into 2024 and beyond."
It's a warm, internal gesture. But also: This is still a stellar moment for Hilton brands under the tutelage of the soon-to-be-ex-CBO.
"It's not as sexy as lifestyle or luxury," Hilton CEO Christopher Nassetta said, describing Spark — the economy brand Schuyler brought to market — on an investor call earlier this year. "In terms of an opportunity to be a value contributor in the billions of dollars for this company and its shareholders, I'm as excited about this as anything else we've done."
Spark had more than 100 hotels in development as of early October and an additional 400 ongoing deal conversations. On the company's most-recent earnings call, Nassetta even noted Spark was the company's swiftest transition from announcing a brand to opening the first hotel in Hilton history.
"We think this is the start of a journey to reshape the premium economy segment while expanding our customer and our owner base," Nassetta said.
Further, the yet-to-be-named Project H3 — Hilton's new extended-stay brand — provides the company with an option in the lucrative business of longer hotel stays. Nassetta indicated on the October investor call that there were 350 H3 deals in negotiation.
None of these factors and comments indicate Schuyler was going down the wrong path by beefing up Hilton's presence in the economy and midscale sector. If anything, the only fault in anyone's mind appeared to be that Project H3 still doesn't have an official name.
What's next for travelers?
Per, Nassetta's memo Chris Silcock, Hilton's chief commercial officer, will take on the role of president of global brand and commercial services at the start of 2024 as part of the transition. The Hilton filing with the SEC also noted that "Schuyler's roles and responsibilities as Executive Vice President and Chief Brand Officer will be distributed throughout the Company's leadership structure."
The company also has a new luxury lifestyle brand in the works, according to comments made on Hilton's last two earnings calls. But it's highly unlikely Hilton is going to backpedal on more affordable brands just because the man behind them eventually leaves the company.
The budget hotel bonanza has only just begun.
Related reading:
- The award traveler's guide to Hilton Honors
- How to choose the best Hilton credit card for you
- What is Hilton Honors elite status worth?
- The best credit cards to reach elite status
- Which credit cards offer the most lucrative rewards for hotel stays?
- The best hotel rewards programs in the world
- Best hotel credit cards
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