Hilton has risen from the slumber of luxury and lifestyle brands.
The hotel giant will acquire a majority stake in Sydell Group, the parent company of the NoMad Hotels brand, the companies announced Wednesday. The deal puts Hilton in charge of expanding the NoMad brand, which is currently limited to hotels in London and Las Vegas. The plan is to eventually expand NoMad to up to 100 hotels, with 10 hotels in “advanced stages of discussion”.
Although the deal was only announced this week, Hilton executives have been teasing for months that some plans were in the works for the luxury lifestyle brand.
“The addition of NoMad to our growing portfolio of brands brings new opportunities to guests seeking unique luxury experiences in some of the world's most desirable locations,” said Chris Silcock, Hilton's president of global brand and commercial services, in a statement. We will be able to provide services.” “By combining a proven, scale-ready brand concept with the power of Hilton's commercial engine, we are accelerating our ability to drive growth in the luxury lifestyle sector.”
If you don't know much about NoMad, you're not alone. After all, NoMad is just two hotel brands. But this will change the overall atmosphere as Hilton counts brands such as Marriott's Edition and W and Hyatt's Thompson Hotels as key players and strengthens the brand for its offering in the highly competitive luxury lifestyle sector. It is also possible to have a greater influence on
Hilton's “Buy Small” is a similar growth strategy that IHG Hotels & Resorts used with Regent, a smaller brand in which the company acquired a majority stake in 2018. Regent was an established brand before IHG acquired it, but IHG now has the last brand. Please talk about what will happen as globalization progresses. Hilton will likely do the same with NoMad.
As NoMad grows into the Hilton ecosystem, its brand aesthetic is to provide guests with a home-like atmosphere in some of the world's most desirable regions, the company said in a statement. Expect a combination of “grand and approachable,” “classic and playful,” and “fun and elegant,” according to the adjectives Hilton uses to describe its soon-to-be-grown brand.
Details on the full lineup of amenities travelers should expect from Hilton's more robust NoMad portfolio with involvement are still scarce, but importantly, Hilton Honors members will now have access to Marriott, Hyatt and Accor's Anysmore offshoot. This means they will have access to the most popular luxury lifestyle space options available. dominate.
“We are excited to begin a new phase for Sydel by partnering with Hilton to expand the NoMad brand around the world,” Andrew Zobler, founder and CEO of Sydel Group, said in a statement. “I am doing so,” he said. “Based on the idea of a hotel as a great home, the NoMad brand is dedicated to providing guests with accessible luxury, exceptional design, and award-winning food and beverages. Both luxury and lifestyle. We are combining Hilton's expertise with a proven track record of scaling.'' This is an exciting opportunity for the brand. ”
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The flagship Nomad London hotel, a TPG favorite for its luxurious, atmospheric furnishings, spacious accommodations and atrium restaurant, will be coming to Hilton's booking platform later this year. NoMad Las Vegas, part of MGM Resorts and Marriott's Park MGM complex, is not part of the deal and is expected to be rebranded with a different brand identity in the coming months.
Jeremy Cooper, chief investment officer at Sydel Group, told TPG: “By combining Sydel's chic hospitality with Hilton's unparalleled sales and loyalty program, we are proud to share Andrew Zobler's pioneering creativity with Hilton. “We have created a perfect partnership, combining best-in-class leadership.” “This unprecedented collaboration sets a new standard in the luxury lifestyle hotel sector.”
A new day at the Hilton
The partnership with Nomad is a departure from Hilton's long-standing “build, don't buy” growth strategy of developing brands organically rather than acquiring existing hotel chains like Marriott, Hilton, IHG and Accor. It is.
But last month, Hilton made two acquisitions: the Graduate Hotel and now the Nomad.
In recent months, there has been a growing buzz in the hotel world over Hilton's ambitions to dethrone Marriott as the world's largest hotel company, especially as the gap between the companies' development pipelines and loyalty program members narrows. For some time, it appears that Hilton is focusing on the affordable end by developing new budget-friendly brands such as Spark and LiveSmart His Studio to foster further growth for the hotel. I did.
But the company can't ignore the luxury and lifestyle categories, where Hilton lags behind its competitors.
Hilton appears ready to put that idea in its rearview mirror, with Graduate Hotels providing the brand with a viable lifestyle hotel product in various towns and cities in partnership with the university. NoMad can be your sibling to a glittering, luxurious lifestyle in some of the world's most popular destinations.
Additionally, Hilton's upcoming partnership with Small Luxury Hotels of the World, whose acquisition from Hyatt is expected to close later this year, will offer Hilton Honors members a wide range of new opportunities in the boutique luxury space. Provide choices.
Think of this as a new day of luxury at Hilton. This day could play a key role in Hilton's rise to the top of the hotel conglomerate food chain.
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