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Hilton Worldwide to launch budget brand

04 November 2015 by
Hilton Worldwide to launch budget brand

Chris Nassetta, president and chief executive of Hilton Worldwide, has revealed that the company is to launch a 13th hotel brand within the economy sector.

Speaking in reply to a question about hotel brands from Nick van Marken, global head of hospitality, Deloitte, at the European Hotel Investment Conference, Nassetta said there was room for more Hilton brands.

In particular, he said that Hilton had a gap in its 12-strong brand portfolio created by the success of its focused service Hampton by Hilton brand.

"Hampton is one of the best brands in its market space and as a result we have been able to push up its price point to an average room rate of $116-118 (£75.39-76.69). This has provided us with the opportunity to create a new product offering bedrooms at around $75-90 (£48.74-58.49), which will create a lot of demand."

Nassetta said that the brand, which is expected to be officially launched in early 2016, will be "the most engineered product we've done" and will offer returns for owners comparable to Hampton. It is expected that it will largely be operated under a franchise model and will launch with a "large number" of signed properties in the US.

"There are really not many great products around at this price point; it tends to be the graveyard of old hotels, where the location and physical product has deteriorated," he added.

A spokesperson for Hilton Worldwide later told The Caterer: "As Hampton has moved into the upper midscale tier due to its outstanding success, there was a void in the market for a midscale brand offering a strong value proposition for owners and guests, while being a true category disruptor. This new brand will offer consumers a vibrant and consistent experience that is unprecedented within the midscale segment.

"The brand will offer owners a product that will be simple to build and operate, requires a lower investment for franchisees, and targets customers at a lower price point than the Hampton brand."


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