Why is Hilton so conservative about expansion?
#1
Original Poster
Join Date: Feb 2005
Location: JFK
Programs: UA Gold (Million Miler), FI Gold, Bonvoy Titanium
Posts: 1,075
Why is Hilton so conservative about expansion?
It's always bothered me that Hilton is this global hotel brand, probably the world's most famous brand, but their global presence isn't actually very widespread. It really bothers me that there still isn't a Hilton in Moscow, or anywhere in Russia, nor is there a Hilton presence in places like Taipei, Manila, Jakarta,Tbilisi, Baku, etc. All these places have Marriotts or Starwoods of Intercontinentals, three hotel groups which seem to have proper international coverage. It seems that there must be a deliberate conservativeness to Hilton's expansion strategy if they purposely allow the other chains to surpass them in coverage.
#2
Join Date: Sep 2004
Location: Warfield, England
Programs: Hhonors (Diamond); HGVC (Elite); Ex/Comp'd - Priority Club (Platinum); UA (Gold); KLM (Gold);
Posts: 655
And not just Hilton, what about expansion of a cheaper range of hotels ... like Hampton Inns across the world ?
#3
Join Date: Mar 2005
Location: Sarasota, fl
Programs: hilton-Diamond, ba, Cunard-Platinum
Posts: 213
Originally Posted by Karter
It's always bothered me that Hilton is this global hotel brand, probably the world's most famous brand, but their global presence isn't actually very widespread. It really bothers me that there still isn't a Hilton in Moscow, or anywhere in Russia, nor is there a Hilton presence in places like Taipei, Manila, Jakarta,Tbilisi, Baku, etc. All these places have Marriotts or Starwoods of Intercontinentals, three hotel groups which seem to have proper international coverage. It seems that there must be a deliberate conservativeness to Hilton's expansion strategy if they purposely allow the other chains to surpass them in coverage.
#4
FlyerTalk Evangelist
Join Date: Nov 2002
Location: Freeload Univ. Where are you sitting?
Posts: 14,818
Originally Posted by Travel The World
And not just Hilton, what about expansion of a cheaper range of hotels ... like Hampton Inns across the world ?
The only chains I can think of with "cheaper" brands overseas would be Intercontinental with their Holiday Inn (Express), and Choice, which is a cheaper line anyhow.
Perhaps it's because the market over there is different -- traditionally, the lower end has been covered by local inns, B&Bs, and so on. Why compete with them on the low end where you have to work harder for the profit dollar?
Still, a Hilton presence would be nicer in more places.
And don't get me started on Spain ....
#5
Suspended
Join Date: Nov 2004
Location: 80 countries across the world
Programs: some, * alliance, OW, ISIC,
Posts: 1,336
starwood may actually have less properties than hilton worldwide.
Putting that aside, i have found hilton to be more flexible in their room decor, furnishings and hilton hhonors programme. They tend to price their rooms cheaper than starwood but tends to be more welcoming. Sometimes some of the other chains like Hyatt and starwood try to make their hotels too grand that it seems daunting.
Putting that aside, i have found hilton to be more flexible in their room decor, furnishings and hilton hhonors programme. They tend to price their rooms cheaper than starwood but tends to be more welcoming. Sometimes some of the other chains like Hyatt and starwood try to make their hotels too grand that it seems daunting.
#6
Join Date: May 2002
Location: Portland, OR
Programs: DL MM Plat, PC&HH Gold
Posts: 2,602
This is why Hilton USA just bought back Hilton International. Hilton has many new Conrad's in the pipeline, and now I fully expect to see many new hilton's and perhaps even other Hilton brands being developed overseas.
And I expect that very few if any of these will be Hilton owned properties -- they will be managed by Hilton owned by someone else.
And I expect that very few if any of these will be Hilton owned properties -- they will be managed by Hilton owned by someone else.
#7
Join Date: May 2004
Location: TTN-Mercer Co., NJ
Programs: UA Gold MM, HH Diam, Bonvoy LT Gold, Hyatt Discvrist, Pri Clb, WN, AA, DL, F9, Global Entry/TSA Pre
Posts: 108
I believe the problem with Int'l expansion stemmed from Hilton until recently being two separate companies...the US headquartered in Beverly Hills and the non US branding handled by Hilton International in the UK. I believe at the time of having the two companies, Conrad was jointly owned...hence the miniscule number of hotels there...
Now that the companies are one, I would love to see the expansion we all crave...from Conrads to Hiltons to HGI's...it is loooong overdue around the world especially in cities where your only choice is a 1960's vintage Hilton held together with spit and duct tape .
Now that the companies are one, I would love to see the expansion we all crave...from Conrads to Hiltons to HGI's...it is loooong overdue around the world especially in cities where your only choice is a 1960's vintage Hilton held together with spit and duct tape .
#8
Original Poster
Join Date: Feb 2005
Location: JFK
Programs: UA Gold (Million Miler), FI Gold, Bonvoy Titanium
Posts: 1,075
I am very hopeful about the fact that Hilton USA bought back Hilton International. So far the only change I've noticed has been in HR. For years Hilton Intl ran a graduate recruitment programme for top tier new UK university graduates that gave them a 6 month paid internship at a UK hotel, followed by 6 months at an non-UK Hilton and then a fast track to being GM of a Hilton Family property. This scheme seems to be over now.
You're right though, it's not just about international coverage but the expansion of the budget brands. Accor seems to be a prime example of a European hotel chain that can have success with a range of hotel models, from high-end to bottom-end... Sofitel, Novotel, Mercure, Ibis...
You're right though, it's not just about international coverage but the expansion of the budget brands. Accor seems to be a prime example of a European hotel chain that can have success with a range of hotel models, from high-end to bottom-end... Sofitel, Novotel, Mercure, Ibis...
#9
FlyerTalk Evangelist
Join Date: Apr 2001
Location: NYC
Posts: 27,230
Originally Posted by NJRob
Now that the companies are one, I would love to see the expansion we all crave...from Conrads to Hiltons to HGI's...it is loooong overdue around the world especially in cities where your only choice is a 1960's vintage Hilton held together with spit and duct tape .
#10
Join Date: Mar 2006
Location: ICN / 평택
Programs: AA, DL Gold, UA Gold, HHonors Gold
Posts: 8,714
Like a previous poster stated as well, Accor has a very large following in Europe. It is often hard to book a room in any one of the ubiquitous Formula1, Etap or Ibis hotels because the prices are so attractive. Many Europeans will fill these up on weekend trips at 25-75 euros instead of paying 150-200 euros at the US chains. They are also attractive because instead of being massed downtown as a whole, many of them are more convenient by automobile. The rooms aren't anywhere near as nice as the Hilton, but for someone needing a bed and shower, these are very good deals for the money. I'd like to see a Hampton Inn in Europe, but I think it will be a while.
#11
Join Date: Sep 2004
Location: Warfield, England
Programs: Hhonors (Diamond); HGVC (Elite); Ex/Comp'd - Priority Club (Platinum); UA (Gold); KLM (Gold);
Posts: 655
Originally Posted by ijgordon
This is Hilton's stated strategy. They will be rolling out primarily Doubletrees, HGIs and Hampton Inn's overseas.
Has anyone seen a press release confirming the above ?
#12
Join Date: May 2003
Location: Eurozone
Programs: LH SEN, HH Gold
Posts: 3,002
Originally Posted by BigLar
Still, a Hilton presence would be nicer in more places.
And don't get me started on Spain ....
And don't get me started on Spain ....