The year 2024 is proving to be an important year for the travel and hospitality sectors.
The numbers are promising, particularly when it comes to international travel. According to a recent Mintel report, global passenger traffic is expected to surpass pre-pandemic levels this year, with more than 9.4 billion passengers anticipated to travel in 2024.
Despite economic uncertainty in some regions, appetite for international travel has continued to grow. This is, of course, good news for hotel owners and guests, who continue to benefit from new opportunities as the sector’s recovery gathers momentum.
Hilton continues to meet guest and owner demand
Hilton has not been shy about its desire to meet this demand, making a series of moves in the first half of 2024, from partnerships to acquisitions.
“We’re maintaining a sharp focus on emerging trends, ensuring our offering reflects market demands and the evolving needs of today’s guest with a goal of serving every guest, for any stay occasion, wherever they want to travel,” said Chris Silcock, president, global brands and commercial services, Hilton. “We are continually adding opportunities for new owners and partners to join our powerful network. For example, we recently announced partnerships with Small Luxury Hotels of the World, which will dramatically expand the luxury experiences offered by Hilton, as well as AutoCamp, giving our guests direct access to outdoor hospitality stretching beyond glamping. In addition to these partnerships, we are incredibly excited for two new brands to join our portfolio, Graduate and NoMad, both powerful brands with high potential for growth in the lifestyle and luxury lifestyle market.”
Hilton expects Small Luxury Hotels of the World’s properties to begin entering the system this summer, joining Hilton’s growing luxury portfolio alongside Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts and LXR Hotels & Resorts. Hilton guests will be able to immerse themselves in a boutique hotel network that spans hundreds of new destinations. Hilton’s collaboration with outdoor hospitality company AutoCamp offers custom-designed Airstreams, spacious cabins, luxury tents and other unique accommodation types with a clubhouse located at the heart of each site. This partnership aligns with Gen Z and Millennial travel priorities as, according to the Hilton Trends Report, nearly half of these travelers will prioritize exploration and adventure this year.
In March, Hilton announced an agreement with Adventurous Journeys Capital Partners to acquire the popular Graduate Hotels brand, known for its lifestyle hotels inspired by their university town locales. With this addition, Hilton will meet guest demand in much loved university towns, believing the addressable market to be 400-500 hotels globally. Each Graduate hotel reflects the history and culture of its location and is carefully designed to connect with the unique character of the local university.
Hilton announced its entry into the luxury lifestyle category in April, after acquiring a majority controlling interest in Sydell Group to expand the NoMad brand from its existing London flagship location to high-end markets around the world.
Graduate, NoMad, AutoCamp and SLH come on the heels of a big 2023, where Hilton announced and opened the first Spark by Hilton, the fastest announcement to launch brand in Hilton’s history. This new, premium economy brand is expected to meet the needs of even more guests and owners seeking value, quality and consistency. For owners, this cost-effective conversion brand provides a unique opportunity by reimagining the economy segment, focusing on areas that drive guest experience, while also providing a consistent look and feel across each hotel. Just a year after launch, more than 50 Spark by Hilton properties are expected to be open across the United States by the end of this month.
In 2023, Hilton also announced LivSmart Studios by Hilton, a studio apartment-style, extended-stay hotel brand for guests seeking stays of 20 or more days. It provides a reliable and consistent accommodation for long trips and quickly received tremendous interest from owners and developers alike. Hilton broke ground on the first LivSmart Studios site less than five months after the brand was announced and there are more than 350 LivSmart Studios deals in various stages of negotiation.
Hilton continues to deliver for hotel owners
As the international travel market recovers back to pre-pandemic levels in 2024, Hilton is on the strongest growth trajectory in its history with more rooms under construction than any other hotel company. Nearly 1,000 hotels were added to Hilton’s pipeline in 2023, and first quarter signings outperformed Hilton’s expectations, driven by the strength of its brands in international markets.
“Our diverse family of brands continues to deliver premium performance, which generates owner preference and leads to our robust development pipeline, now at more than 470,000 rooms worldwide,” said Kevin Jacobs, chief financial officer and president, global development, Hilton. “The additions of Graduate and NoMad to our portfolio – coupled with our recent partnerships and new brands like Spark and LivSmart – will further strengthen our network effect and our ability to deliver strong returns for owners. We are incredibly excited about what lies ahead this year and beyond – for Hilton, our owners, guests, and team members.”