Hilton has revealed six signings in Asia-Pacific (APAC) across its portfolio of luxury brands—Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts and LXR Hotels & Resorts—in the year to date, a mark of growing optimism in luxury travel across the region.
With the signing of Waldorf Astoria Xi’an, Waldorf Astoria Shanghai Qiantan, Waldorf Astoria Kuala Lumpur, Waldorf Astoria Sydney, Conrad Nagoya and an LXR Hotels & Resorts property in Bali, Hilton’s pipeline of luxury hotels in the region increases to 20. When these hotels open in the coming years, the company will have a portfolio of more than 50 luxury hotels across Asia-Pacific.
With a growing middle class, increased consumer spending and an underserved lodging market, Asia-Pacific presents a $10 trillion consumption growth opportunity over the next decade.
Alan Watts, president, Asia-Pacific, Hilton said, “Hilton is Asia-Pacific’s fastest growing hospitality company, and that signals the confidence that owners and developers have in our ability to capture growing demand and deliver strong returns in APAC’s most sought-after destinations. We share the optimism that owners and developers have about the future of luxury travel and appreciate the importance they place on partners and brands that will optimize their yield. As we continue to pursue quality organic growth and enhance our network effect, we too stay focused on prioritizing the right partnerships to deploy the right brands in the right locations.”
Post-pandemic recovery has prompted increasing owner and developer interest in hospitality real estate, as the APAC hotel investment volume in 2021 grew 46% year-on-year to exceed $12 billion, and investors focused on acquiring luxury or resort assets. The luxury travel segment is also expected to burgeon as 42% of APAC consumers who intend to take an international trip seek out luxury experiences.
“These signings mark an incredible moment for our luxury brand portfolio as we expand Waldorf Astoria, Conrad and LXR throughout five countries in the region, offering even more opportunities for travelers to immerse in our authentic approach,” said Dino Michael, SVP/global category head, Luxury Brands, Hilton. “From Waldorf Astoria’s intuitive service, to Conrad’s bold design and LXR’s culturally immersive experiences, the hotels continue to showcase innovation and deliver on what guests are looking for in their stay. This expansion reinforces the appeal of the brands globally, and is a true testament to the team members who bring luxury to life.”
Hilton’s latest signings mark a further closing of key city gaps as its luxury brands debut or expand in key travel destinations such as Japan, Australia, Malaysia, Indonesia and China.
China in particular holds great potential in shaping the future of luxury travel as it is home to the world’s largest consumer economy and is set to become the largest luxury goods market by 2025. Travel demand is also shifting as the country’s new generation of young and discerning travelers seeks higher levels of personalization, well-being, sustainability and quality in their luxury travel experience.
The signings of Waldorf Astoria in Xi’an and Shanghai Qiantan put the brand on track to double its portfolio in China and offer luxury in eight hotels. When open, Waldorf Astoria Xi’an will be one of the tallest buildings in this ancient capital of the 13 Dynasties. Designed by the famed design firm, Yabu Pushelberg, the hotel will draw inspiration from the city’s rich millennia-old culture and integrate oriental elegance into modern design. Waldorf Astoria Shanghai Qiantan will mark the city’s second Waldorf Astoria hotel. Located in Shanghai’s brand-new CBD—the New Bund area—the hotel will boast panoramic views of the Huangpu River and immerse guests in the tranquility and glamour of China’s commercial capital.