As further global expansion is projected in 2021, Hilton has highlighted two areas that contributed positively to its performance: the increased conversion of non-Hilton properties and the role of extended-stay brands in drive-to markets.
Conversion Growth
In 2020, conversion signings increased more than 30 percent compared to the previous year. Hilton’s Collection Brands—LXR Hotels & Resorts, Curio Collection and Tapestry Collection—and established brands such as DoubleTree by Hilton, have seen sustained interest and growth in the conversion category.
“Conversions are particularly relevant given the recent business environment, as they allow our hotels to benefit from the strength of Hilton’s network effect,” said Gary Steffen, category head, full-service brands, Hilton. “With the power of the Hilton name comes more than 112 million Hilton Honors members and a high-performing commercial engine, allowing us to serve as a trusted partner and help owners and operators navigate through uncertain times.”
Extended-Stay
Hilton’s extended-stay brands, Homewood Suites by Hilton and Home2 Suites by Hilton, have performed positively during healthy travel cycles and also during challenging times.
“We’re proud of our suites product, offering value-driven, spacious accommodations with all of the amenities needed to make these brands a true home away from home for guests,” said Bill Duncan, global category head, focused service & all-suites brands, Hilton. “Our extended stay category shone this past year, with distribution across the United States, we were able to meet the needs of our guests on the road.”
During Hilton's Q4 and full-year 2020 earnings call last month, President and CEO Chris Nassetta was upbeat about the company's prospects in the U.S. and for the group as a whole. There is “massive” pent-up demand in the leisure and business segments, he said. Travel spending is likely to rise as health scenarios allow, he added, and nationwide personal savings ratios had risen to make it affordable for many people.
Conversion brands and extended stay have both been highlighted as key growth trends for the hospitality industry.
Read the full article in our sister publication Hotel Management