A holiday is always a good day to market travel deals. But what about a holiday that comes not ‘but once a year’ like Christmas, but just once every four years?
09.02.2024 - 12:46 / skift.com / Christopher Nassetta / Sean Oneill
Hilton executives said Wednesday that acquisitions are possible – a shift from the past 16 years when it has focused on creating new brands rather than buying up existing ones.
The comments came as rumors have surfaced that Hilton is in talks to acquire NoMad Hotels, a tiny brand of luxury lifestyle hotels, and Graduate Hotels, a collection of about 30 college-themed properties near universities.
Hilton, owner of 22 brands, such as DoubleTree and Waldorf Astoria, has invented brands like Tru and Spark to compete in key categories.
“The environment we’re in is a little bit different,” said Christopher Nassetta, Hilton president and CEO. “There is, for a lot of reasons, interest rates and otherwise, more stress in the system than normal, that probably presents more opportunity to do things like this. Things that are quite modest in my view and that are what I view as sort of tuck-in acquisitions.”
“The summary is we have no different attitude [toward mergers and acquisitions],” Nassetta said. “We continue to look at everything. But the stress in the environment maybe provides a little bit more opportunity than we’ve seen in quite a long time.”
What kind of hotel group might most appeal to Hilton executives right now?
“We intend this year to enter [the luxury lifestyle] space one way or another, and we’re hard at work,” Nassetta said. “You should expect sometime this year — hopefully, sooner than later — to see us enter that space.”
“Luxury lifestyle” hotels ideally have a restaurant and bar that is acclaimed by locals, not just guests, without turning the property into a party hotel. The decor leans toward impractical but Instagrammable furniture and artworks that encourage guests to advocate for the properties on social media. Marriott has Edition and W brands in this space. Hyatt has Andaz.
Nassetta’s comments will fuel interest in a rumor, first reported by Bloomberg in November, that Hilton was considering acquiring NoMad Hotels from Sydell Group. (Sydell Group hasn’t since responded to Skift’s requests for comment. Hilton said it doesn’t comment on rumors.)
NoMad runs lifestyle luxury hotels in Las Vegas and London. However, the brand has been financially troubled, especially because of the pandemic. Sydell Group had to close two of its NoMad hotels in New York and Los Angeles.
Hilton executives need to weigh the trade-offs of an acquisition. Acquiring a brand like NoMad would speed up the pace at which it could enter a market. It is harder to develop a brand in the luxury lifestyle category that resonates with guests who want a distinctive, compelling set of services, and owners who want a concept that’s straightforward and cost-effective to replicate and run.
Questions at hand include:
Graduat
A holiday is always a good day to market travel deals. But what about a holiday that comes not ‘but once a year’ like Christmas, but just once every four years?
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