Hilton Taps Luxury Portfolio to Arrive at 1,000 Hotels in Asia-Pacific by 2025

25.08.2023 - 13:49 / skift.com / Peden Doma Bhutia / Kevin Jacobs / In Asia

Hilton hopes to have 1,000 hotels operating in Asia Pacific by 2025 and sees opportunity at all tiers, but particularly in luxury brands and entry-level hotels.

The brand currently operates 627 hotels under 12 brands in 22 countries and territories in Asia-Pacific.

“Hilton is the fastest-growing hospitality company in Asia Pacific, and we continue to eye further long-term growth,” said Ben George, senior vice president and commercial director, Asia Pacific.

In its latest earnings call in February, Hilton noted that Asia-Pacific region, excluding China, saw significant improvement with revenue per available room rising 8 percent compared to 2019.

This performance had been largely driven by strength in Japan, following borders reopening, Kevin Jacobs, Hilton’s chief financial officer and president, global development, said during the earnings call.

The revenue per available room in China was down 37 percent compared to 2019.

George also said that the recent launch of the economy brand Spark by Hilton, which began in the U.S., enables the group to explore further growth opportunities in Asia Pacific in due course.

Witnessing a steady growth of its luxury portfolio in Asia Pacific, Hilton last year had more than 10 landmark luxury signings, including the entry of Waldorf Astoria in Australia, Malaysia and Vietnam.

The expansion of the Conrad brand has been marked with the signing of three new properties in China’s major travel destinations of Xi’an, Chengdu and Nanjing as well as Conrad Nagoya in Japan and Conrad Singapore Orchard

Then there are the signings of Waldorf Astoria in China’s Xi’An and Shanghai Qiantan, and Hilton luxury brand LXR in Bali.  

The demand for luxury travel is set to rise significantly, especially in Asia Pacific, where 42 percent of consumers are expected to seek luxury travel experiences, according to one estimate.

This surge in demand is fueled by a rapidly expanding middle class, higher levels of disposable income, and underserved premium lodging options, which contribute to a consumption growth potential of $10 trillion in the region over the next decade.

“In line with the industry findings, the signings are also testament to the confidence from the owner and investment communities in the strength of our luxury brands,” George noted.

This confidence is also reflected in the continuous rise in occupancy levels and interest in Asia Pacific destinations, he added.

Personalization will continue to be a priority for guests, and that’s apparent in Asia Pacific, where 84 percent of respondents in Australia and 70 percent in Japan indicate the need for personalized experiences during their travels, according to Hilton.

Marriott International operates 156 luxury properties in the