Asia “an absolute top priority†for Hilton
HONG KONG – Hilton Hotels wants to add 300 hotels to the 47 it already operates in Asia over the next decade, as it seeks to catch up with rivals and cash in on the boom in business and leisure travel in India and China, senior company executives have told the Wall Street Journal.
Hilton expects to manage the majority of these new hotels and leave the investment and ownership of them to others.
“The Asia region is one of our absolute top priorities for our business and development,” said Hilton’s chief executive and president, Chris Nassetta.
“The strategy is to put about 300 new hotels in the region. We’d like to do better than that, but that’s our goal.”
He estimated the value of these planned hotels to be in “the tens of billions of dollars.”
Hilton is focusing initially on India, where it has a joint venture with local property firm DLF Ltd. that aims to open 75 hotels within the next five years.
Starting in India’s big cities, where population density limits the availability of land suitable for international-standard hotels, Hilton plans to introduce its Hilton Hotels, Homewood Suites by Hilton and Hilton Garden Inn brands.
DLF’s property holdings should give Hilton an edge over some of its competitors, said Koos Klein, president of Hilton Hotels in the Asia-Pacific region.
“In India, a lot of people have plans, but not a lot of land. DLF does,” Klein said.
Hilton currently operates no hotels in India.
In the next four years, Hilton wants to add 18 hotels to the five it already operates in China. In addition to its Hilton brand, the company plans to manage Doubletree and Conrad Hotels & Resorts properties there.
Nassetta said he also sees “massive potential” in the budget-hotel category — possibly for Hilton’s Hampton Inn brand — thanks to the country’s growing affluence and the eagerness many Chinese are showing to travel for work and pleasure.
Both India and China are “in their absolute infancy” as hotel markets, so Hilton should be able to catch up quickly with other chains, said Nassetta, speaking from Hilton’s regional headquarters in Singapore.
Ian Jarrett
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