Hilton snatches Small Luxury Hotels of the World alliance away from Hyatt
Hyatt took another blow on the partnership front this week, as Hilton is now poised to be the new exclusive partner with Small Luxury Hotels of the World, a platform of 560 independent luxury hotels around the world.
The partnership is a major boost to Hilton’s luxury network, which currently relies on brands like Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts and LXR Hotels & Resorts, which is a soft brand of independent-style hotels that tap into the Hilton booking and loyalty systems.
SLH has been a Hyatt partner since 2018 and was a major boost for Hyatt in Europe, where it had a smaller footprint — especially prior to the Apple Leisure Group takeover. This is the second blow to Hyatt on the partnership front in less than a year, as MGM Hotels & Resorts ditched the hotel company last year in favor of a partnership with Marriott slated to begin early this year.
“We’re thrilled to begin this win-win relationship with Hilton as it brings exciting possibilities for both brands,” Shaun Leleu, chairman of Small Luxury Hotels of the World, said in a statement. “Hilton customers, including Hilton Honors members, gain access to our unrivalled collection of exceptional boutique hotels, while our properties enjoy amplified reach to a loyal and discerning audience. It's a game changer for independently owned hotels on a global scale.”
The SLH-Hilton partnership, which will fully roll out in the coming months, means all Hilton Honors members will be able to book a stay at a participating SLH property and earn and redeem Hilton Honors points. Participating SLH properties will appear on Hilton’s booking channels, meaning even non-Hilton Honors members who book direct can still opt for a stay at an SLH-partnered hotel.
Given the release’s use of “participating,” it appears not every SLH property will take part in the Hilton partnership (similar to how it worked with Hyatt). But Hilton CEO Christopher Nassetta emphasized on a company earnings call Wednesday that he felt a majority of SLH properties would opt into the Hilton partnership.
Going after SLH enables Hilton to tap into niche markets that would be hard to find a way to shoehorn one of Hilton's existing brands into. Nassetta noted SLH doesn't overlap with any of the larger types of hotels that would be affiliated with one of Hilton's existing luxury brands.
“This relationship with Small Luxury Hotels of the World will grant Hilton customers and Hilton Honors members access to a community of high-end boutique hotels in exciting new luxury travel destinations, giving them more ways to dream, book, and earn and redeem points with Hilton,” Chris Silcock, Hilton’s president of global brands and commercial services, said in a statement.
The geographic breakdown of SLH is roughly 60% in Europe, 20% in the U.S. and 20% in the Asia Pacific region, Nassetta said.
Following the initial publication of this story, a Hyatt spokesperson noted the company, in the coming months, plans to leverage the Mr & Mrs Smith booking platform of small luxury hotels, which it acquired last year, to provide World of Hyatt members options in this space. It's expected these properties will appear on Hyatt reservations and booking channels.
"As our business continues to evolve and we strive to offer our guests and members new ways to explore the world, we have mutually made the decision to end our relationship with SLH in the near future," the Hyatt spokesperson said of the SLH partnership ending. "At this time, World of Hyatt members can still book participating SLH Hotels on Hyatt’s booking channels, and nothing changes as of now for existing World of Hyatt member reservations. More information on the end of this relationship will be shared with guests and members in the coming months."
Hilton’s luxury push
The SLH partnership announcement arrived the same day Hilton reported a $1.15 billion profit for all of 2023, including $150 million for the last three months of the year. Eyes are still on what’s happening at the company and its push further into the luxury and lifestyle space.
Reports emerged this week Hilton is considering an acquisition of Graduate Hotels, a smaller chain of lifestyle hotels in college towns or cities with a significant higher education presence. But the company is also reportedly considering an acquisition of NoMad Hotels, a two-property brand that could unlock the door for Hilton's ambition to operate in the luxury lifestyle hotel sector.
While Nassetta noted, as company spokespeople have said in the past, that he wouldn't comment on rumors or speculation, he did indicate Hilton is open more to brand takeovers today compared to its longtime mantra of "build don't buy" when it comes to brands. While competitors like Marriott, Hyatt and IHG have all made acquisitions in recent years to fill in holes in their portfolios or geographic networks, Hilton typically grows its own brands.
Given the financing climate of today, Nassetta said there is more stress in the system than normal. Hilton still maintains a "tough filtration system" in terms of deciding whether to acquire something, but the current climate also "presents more opportunity to do things like [an acquisition]," he added.
While he wasn't announcing any takeover deals today, Nassetta appeared to agree with broader industry sentiment that the future mergers and acquisitions cycle in the hotel orbit and at Hilton would be "tuck-in acquisitions" compared to any kind of mega-takeover like Marriott's $13 billion takeover of Starwood in 2016.
Further, don't think of the SLH partnership as a signal Hilton is done with its growth in the luxury or luxury lifestyle space. Hilton is still working on an additional brand play in order to better compete in the luxury lifestyle sector currently dominated by players like Marriott’s Edition and Hyatt’s Alila.
"We are still hard at work," Nassetta said of Hilton's luxury lifestyle brand ambition. "You should expect sometime this year — hopefully, sooner than later — to see us enter that space."
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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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.