Hilton aims to double its portfolio of lifestyle hotels within the next four years.
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Lifestyle hotels are experiencing significant growth at Hilton.
Currently boasting 350 lifestyle hotels, Hilton intends to launch an additional 350 by 2028, with 100 of these openings scheduled for this year alone, as announced on Monday.
While Hilton has recently concentrated on more budget-friendly market segments through its premium economy brand Spark and the extended-stay LivSmart Studios, it has shifted its focus back to lifestyle hotels with the introduction of the Graduate and NoMad brands. Other lifestyle offerings from Hilton include Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Motto by Hilton, and Tempo by Hilton.
"As we mark the 10th anniversary of Hilton's entry into the lifestyle sector, we anticipate even faster growth with a strong array of brands designed to cater to the needs of developers and guests in some of the world’s most sought-after locations," stated Kevin Jacobs, Hilton's CFO and president of global development. "The recent addition of Graduate and NoMad to our lifestyle and luxury portfolio will enhance our growth strategy as we seek new ways to provide exceptional experiences in the world's premier hotel destinations."
Lifestyle hotels represent the next phase in the evolution of boutique hotels. Unlike their boutique predecessors, which often featured dim lighting and exclusive bars and restaurants, lifestyle hotels focus on integrating with their local communities. According to leaders at brands like Accor, these hotels can generate up to half their revenue from dining and nightlife.
Hilton's venture into lifestyle hotels is led by a new division head: Kevin Osterhaus, who previously served as president of Graduate Hotels, now takes the role of president for Hilton's global lifestyle brands. With extensive experience in lifestyle hotel management, he has held prominent positions at Ennismore International, The Hoxton Hotels, Sixty Hotels, and Standard International.
Among the Hilton lifestyle brands that travelers and Hilton Honors members are likely familiar with are the Curio and Tapestry collections. However, the Graduate brand, focused on college towns and cities, has the potential to expand to as many as 500 hotels.
Hilton is poised to rival Marriott's Edition brand with NoMad, its luxury lifestyle hotel brand aimed at high-end markets worldwide. Hilton executives have suggested that NoMad could eventually reach a total of 100 hotels.
"Hilton's lifestyle brands are aspirational, design-focused, and experiential, showcasing authentic perspectives in every element of the stay," Osterhaus stated. "I am eager to enhance the category's success and uphold Hilton's commitment to redefining what it means to be a lifestyle brand."
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