Selina, a hotel and experiences brand focused on youth travelers, said on Wednesday that its financial metrics were trending in the right direction as it reported earnings results.
25.08.2023 - 14:19 / skift.com / Sean Oneill / Chris Nassetta / Matt Schuyler
Hilton Worldwide is rolling out its first-ever hotel brand in the economy slice of the market, Spark by Hilton, taking on rivals such as Marriott International, Choice, and InterContinental Hotels Group in this competitive market segment.
The new concept focuses on an easy-to-maintain design for developers providing basic amenities at a rate range of approximately $85 to $100 a night. That pricing range puts it in the “premium economy” segment. It offers less space and amenities than Hilton’s midscale lifestyle brand Motto or its urban limited-service brand Hilton Garden Inn.
The Spark by Hilton pitch is a conversion brand aimed at developers and other hotel investors with properties between 60 and 100 rooms that they’ve flagged with other chains.
“If you’re willing to go through conversion for just a bit of time, the long-term development play here is that you’ll elongate the life of the property and command a higher occupancy and a more premium rate thanks to the Hilton demand engine, coupled with a clean and safe and reliable hotel structure that we’ve streamlined,” said Matt Schuyler, Hilton’s chief brand officer.
“We looked at this space and saw there’s just not great product across the space in general,” Schuyler said. “There’s a lot of inconsistency. So we saw a great opportunity. We’ve got close to 200 deals in various stages of discussion now, with over 100 that are relatively solid in some form of development.”
From the consumer perspective, the pitch is to travelers driving down a major American freeway and seeing economy hotels at the crossroads of exits and not being sure if the properties are going to feel dirty and safe but not wanting to spend much for more than the basics just for an overnight stay for you, your family, and possibly your pets.
The Spark by Hilton design is minimal.The bathroom has a basic sink, mirror, and simple shower stall, while the bed has wall-mounted nightstands next to it. There’s a clothes bureau. a TV, and a table that can flex and extend for different purposes. That’s essentially it.
“We did a massive amount of studying of consumer sentiment and behavior to get inside the minds of the traveler today,” Schuyler said. “Roughly 80 percent of the travelers we talked to said they had occasions to use an economy brand.”
Hilton’s move comes at a time of a few other brand rollouts as Marriott, Wyndham, and Best Western recently debuted new extended-stay/apartment brands in the past few months.
Over 15 years, the McLean, Virginia-based hotel giant has doubled its number of hotel and resort brands to 19 and more than doubled its number of rooms to 1.1 million.
It seems likely more brands are yet to come, given that Chris Nassetta, president and CEO, said his
Selina, a hotel and experiences brand focused on youth travelers, said on Wednesday that its financial metrics were trending in the right direction as it reported earnings results.
Hotel guests of Hilton will soon be able to rest and recharge themselves — and their own electric vehicle at the same time. The popular hotel chain has teamed up with Tesla to add 20,000 Universal Wall Connectors at 2,000 Hilton hotel properties throughout North America, Hilton shared with Travel + Leisure this week. Each hotel will have at least six chargers on-site, creating the largest overnight electric vehicle charging network. The first locations distributed across the United States, Canada, and Mexico will come online in early 2024. “Through this expanded agreement with Tesla, we are significantly changing the landscape of universal EV chargers in North America in an incredibly short amount of time,” Hilton’s Chief Brand Officer Matt Schuyler said of the hotel company's announcement.
Hilton said Thursday that it plans to install at least six electric vehicle chargers per property at 2,000 hotels in North America, and will buy devices from Tesla. Once it fully installs them, Hilton will own more electric vehicle chargers than any other U.S.-based hotel group.
There's planned refueling taking place at more than the breakfast stations at Hilton hotels across the U.S., Canada and Mexico in the coming years.
Earnings seasons for the hotel sector is nearly over, and one striking aspect of executive comments on calls with investors was the resilience of development pipelines for hotels belonging to brands run by global groups. For new construction, conversions, and franchise signings, hotel companies painted an optimistic picture.
Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here, now.
Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here, now.
Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here, now.
Hilton Worldwide’s earnings report on Thursday was a good news-bad news story.
Appealing to people’s emotions is becoming a more effective way for hotel groups to woo travelers because guest needs are evolving in ways that undercut the traditional branding recipe. Many hotel executives are fine-tuning what their brands stand for and how they communicate that message to guests as they try to grab market share.
Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here, now.
It’s been a boom time for the hotel industry in the United Arab Emirates, as recent news items in Skift’s Daily Lodging Report have recently shown.