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
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees