Hilton’s Asia Pacific Growth: The Brands Driving it and the Focus on India
31.07.2024 - 09:29
/ skift.com
/ Peden Doma Bhutia
/ Waldorf Astoria
Hilton’s growth strategy in Asia Pacific is multifaceted. It is the fastest growing hotel company in the region, with almost 1 in 4 hotel rooms under construction bearing a Hilton flag.
As of the first quarter of 2024, Hilton had 801 operational hotels, 892 in the pipeline and is on track to surpass 1,000 hotels by 2025, according to Clarence Tan, senior vice president, development — Asia Pacific at Hilton.
Tan also noted that there’s significant growth potential for Hilton brands across Asia Pacific. “We currently have 12 brands in the region, and we need to introduce some of our new brands as well.”
He further noted that Hilton is committed to a capital-light growth model, strategically deploying the right brands in the right locations to maximize owner returns.
Significant demand in the focus service segment, driven by intra-regional travel, has been propelled by Asia Pacific’s burgeoning middle class. This demand has boosted Hilton’s focused service brands, such as Hilton Garden Inn and Hampton by Hilton.
“We’ve seen growth in China, particularly with our focus service brand, starting with Hilton Garden Inn, followed by Hampton, and most recently, Home2Suites,” Tan said.
Also, in June 2024, Hilton introduced Hilton Garden Inn-Gen A, a new regional prototype for Greater China. The company is also expanding its presence in the full-service segment, with its flagship brand entering new markets and key gateway cities. Hilton Dili Palm Springs, set to open in 2024, will be the first international hotel in Timor-Leste, while the newly opened Hilton Kathmandu marks the company’s first property in Nepal.
Hilton is expanding its luxury presence in Asia Pacific, which now comprises 40% of its luxury portfolio and is projected to account for half of its global luxury pipeline. The company plans to double its luxury brand presence in the region over the coming years.
Hilton operates three luxury brands in Asia Pacific: LXR, Conrad, and Waldorf Astoria and some of the key upcoming additions include properties in major cities such as Tokyo, Osaka, Sydney, and Hanoi. The hotel company also aims to significantly increase its footprint in India.
The acquisition of NoMad Hotels marks Hilton’s entry into the luxury lifestyle segment. NoMad, known for its playful and restaurant-centric approach, complements Hilton’s existing luxury brands. The plan is to expand NoMad across key regions, including the U.S., Europe, and Asia Pacific.
“We are ensuring that the NoMad properties maintain their unique identity and do not become too similar to our existing luxury brands,” said Tan.
Hilton’s recent partnership with Small Luxury Hotels is a strategic move to address market gaps for unique, personalized experiences that