As strong leisure demand and upticks in business travel both domestically and abroad drive the recovery of the hospitality industry, Hilton has continued to expand its global footprint, achieving net unit growth of 7% in the second quarter. More than half of Hilton’s total global pipeline is in the Americas, with nearly 1,500 properties in development in addition to more than 5,600 open properties.
“Hilton’s growth has remained solid throughout the course of the pandemic,” said Kevin Jacobs, CFO/president, global development. “Globally, our owners continue to see the long-term value and returns Hilton offers, demonstrated by the exciting development activity we’ve recently seen.”
Brand milestones
The second quarter saw the milestone opening of the 200th Tru by Hilton, only five years since launch, followed by the July opening of the 500th Home2 Suites by Hilton, which currently has the largest pipeline in North America industry-wide, according to the company. Adding to its debut property in Washington, DC, Motto by Hilton opened its second location, Motto by Hilton Philadelphia Rittenhouse Square, and Canopy by Hilton Portland Waterfront marked Hilton’s first lifestyle brand hotel in New England.
In July, Hilton opened its first hotel under the Signia by Hilton brand, Signia by Hilton Orlando Bonnet Creek, rebranded from a Hilton Hotels & Resorts property. Hilton also broke ground in Atlanta on the first newly constructed hotel for the brand.
Beyond its recent opening at Resorts World Las Vegas, Conrad Hotels & Resorts continues to expand its West Coast presence. The brand recently announced its debut in California with the signing of Conrad Los Angeles slated to open in 2022. The hotel is part of Related Companies’ mixed-use development, The Grand LA, designed by Frank Gehry and located in downtown Los Angeles.
In addition to these highlights, Hilton has experienced significant growth in key leisure destinations, including Las Vegas and various markets across Florida and Mexico.
U.S. expansion
Hilton has accomplished unprecedented growth in Nevada with more than 60% year-over-year growth in the state, totaling 44 Hilton-branded hotels with more than 14,000 rooms as of June 30. At the forefront is Las Vegas, where Hilton has nearly doubled its presence in the market during the past three years and represents the only U.S. destination housing all three of Hilton’s luxury brands.
With more than 30 hotels and 11,000 rooms expected in the market by the end of 2021, the company’s expanding Las Vegas footprint features diverse hotel offerings and signature Hilton hospitality across 12 brands, building on its legacy in the iconic city and supporting the continued recovery of travel. At the helm is the recent opening of Resorts World Las Vegas, the largest multi-brand deal in Hilton’s history and its biggest property globally. It features 3,500 guestrooms and suites from three premium Hilton brands, including the largest Conrad Hotels & Resorts property in the world, one of the first U.S. locations of LXR Hotels & Resorts and a marquee Hilton Hotels & Resorts hotel.
Earlier this year, Hilton also added Virgin Hotels Las Vegas, Curio Collection by Hilton to its Las Vegas supply and boasts a resort featuring more than 1,500 chambers and suites, an exclusive spa, 15 distinct food and beverage outlets, multiple entertainment venues and a state-of-the-art casino.
With eyes on the southeast, Hilton has looked to Florida as a target market for advancement, which offers a variety of travel destinations to guests, including coastal resorts and urban city centers. Hilton’s diverse portfolio of brands has continued to drive momentum in the market, capturing both new development projects, as well as conversions. As of June 30, Hilton has 440 hotels with nearly 70,000 rooms in the state.
Recent openings in Florida include Hilton Aventura Miami, Hotel Melby Downtown Melbourne, Tapestry Collection by Hilton, Hilton Garden Inn St. Pete Beach and Home2 Suites by Hilton Fort Myers Airport.
Hilton expects to open more than 20 new hotels in Florida in the next 12 months. The Ray Hotel Delray Beach, Curio Collection by Hilton, which opened Sept. 1, features 141 rooms and an environmental-focused design with living walls, a rooftop floating forest and LEED Gold Certified building. Beyond 2021, Hilton will also expand its luxury footprint in the Sunshine State with the openings of the 430-room Conrad Orlando and the Waldorf Astoria Hotel and Residences Miami. Designed by architect Carlos Ott and standing at nearly 1,100 ft., Waldorf Astoria Miami will be the tallest building in Florida, according to the company.
Latin America expansion
Hilton is deeply committed to growing throughout the Caribbean and Latin America region, notably Mexico, where it has more than 70 open hotels and more than 30 properties in the development pipeline.
The upcoming opening of Conrad Tulum in late 2021 will be Conrad Hotels & Resorts’ first flag in the Quintana Roo region. Combining rich Mexican heritage with refined sophistication, the Waldorf Astoria Cancun will also open its doors to discerning guests in 2022. Additionally, Hilton has continued its expansion across the all-inclusive category in Mexico, opening The Yucatan Resort Playa Del Carmen, Tapestry Collection by Hilton, the first all-inclusive resort for Tapestry Collection, and most recently Hilton Vallarta Riviera All-Inclusive Resort. Later this year, Hilton Cancun, an All-Inclusive Resort, is slated to debut on 100 acres of Mayan coastline with 715 guestrooms and 12 unique culinary experiences.
Hilton’s properties in this prime travel destination also include Hampton by Hilton Aguascalientes Downtown, offering value-driven accommodations in central Mexico. Motto by Hilton and Tru by Hilton are expected to make their debut in Mexico with several openings in 2022 and 2023 including Motto by Hilton Tulum, Motto by Hilton Guadalajara Centro Historico and Tru by Hilton Monterrey Fundidora.
