Hilton plans to double its lifestyle hotel count in 4 years
Lifestyle hotels are a booming business at Hilton.
With a current lifestyle hotel count of 350, the hotel giant plans to open another 350 lifestyle hotels by 2028 — with 100 of those openings happening this year alone, Hilton announced Monday morning.
Hilton might have seemed to focus on more affordable segments of the market in recent years with the brand launches of the premium economy Spark and extended-stay LivSmart Studios. But the company more recently showed its interest in lifestyle hotels with the addition of the Graduate and NoMad brands to its lineup. Other Hilton lifestyle brands include Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Motto by Hilton and Tempo by Hilton.
"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," Kevin Jacobs, Hilton's chief financial officer and president of global development, said in a prepared statement. "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."
Lifestyle hotels have become the industry's evolution of the boutique hotel. Whereas boutique hotels in their heyday were often intimidating spaces with dim lights and impossible-to-get-into bars and restaurants, lifestyle hotels are more about embracing the surrounding neighborhood. Leaders at brands like Accor describe lifestyle hotels as ones that earn as much as half their revenue off bars and restaurants.
Hilton's push into lifestyle hotels comes with a new head of the division: Kevin Osterhaus, previously the president of Graduate Hotels, will now be the president of Hilton's global lifestyle brands. Osterhaus has significant experience in lifestyle hotels, having held leadership roles at Ennismore International, The Hoxton Hotels, Sixty Hotels and Standard International.
Based on property count, the Hilton lifestyle brands that travelers and Hilton Honors members are likely most familiar with are the Curio and Tapestry collections. But don't discount Graduate: The lifestyle hotel brand geared toward college and university towns and cities could grow to as many as 500 hotels.
Hilton is also on track to compete head-to-head with Marriott's Edition brand with NoMad, a luxury lifestyle hotel brand targeting "high-end markets" around the world. Hilton leaders have previously indicated NoMad could eventually grow to 100 hotels.
"Hilton's lifestyle brands are aspirational, design-led, and experiential with authentic points of view reflected in every aspect of the stay," Osterhaus said in a statement. "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."
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