Hilton To Begin Luxury Hotel Operation
Published on Jun 3 2014 9:20 AM in Hotel
Hilton Worldwide is set to begin activity in high-end hospitality, and thus make up ground on rivals that have made significant progress in the market. It is under the Curio brand, which will affect earnings in a "material" manner, that four- and five-star hotels will open to cater for upper crust travellers. Chris Nassetta, Hilton Worldwide's CEO, spoke on the action: "These are rare, statement hotels that have their own following. There has been huge demand for these types of properties." The hotel group also harbours the intention of launching what it refers to as a new "lifestyle" brand for travellers who are au fait with technology, which will operate at a lower price than its rivals' equivalent services. The "material impact" the undertakings will generate, of which Nassetta spoke, will not affect this year's trading, but rather will come into effect 2015. The asset-light business model will be employed for the enlargement of the company, which means management contracts and franchises are prioritised over absolute ownership. Nassetta went on to say "Our customers and owners have expressed strong interest in a brand from us that includes hotels that can retain their unique identity but also deliver the many benefits of our system, including our Hilton HHonors guest loyalty programme. That desire, combined with the current size of the independent hotel market and demand for differentiated hotel stays around the world, made for the right timing for this launch. Curio is an exciting new brand for us — one of two unique concepts we'll introduce this year."