Hilton's Ambitious Asian Expansion
Hilton Hotels Corp. is embarking on a significant expansion plan in Asia, aiming to add 300 hotels to their existing 47 over the next ten years. This strategic move is designed to allow the company to compete more effectively with its rivals and capitalize on the flourishing business and leisure travel markets in India and China, as reported on June 25th.
Focus on Management, Not Ownership
The Wall Street Journal reported that Hilton, boasting nine brands ranging from the luxurious Waldorf-Astoria Collection to the more budget-friendly Hampton Inn, intends to primarily manage these new hotels. The investment and ownership aspects will be left to other parties.
Quoting Hilton's Chief Executive and President, Chris Nassetta, the report stated, “The Asia region is one of our absolute top main concerns for our business and development. The plan is to put about three hundred new hotels in the region. We’d like to do better than that, but that’s our goal.”
Nassetta also projected the value of this elaborate expansion to be in “the tens of billions of dollars.” Currently, Hilton Hotels operates a global network of over 3,000 hotels spanning 74 countries and territories.
India: A Key Market for Growth
Hilton's initial focus will be on India. There, the company has established a joint venture with local property firm DLF Ltd. This partnership seeks to launch 75 hotels within the next five years. The newspaper quoted Nassetta as stating that Hilton is focusing its initial efforts on India. This venture aims to open 75 hotels within the next five years.
Targeting Major Indian Cities
The report highlighted Hilton's strategy for the Indian market. Initially concentrating on major Indian cities where limited land availability poses a challenge for international-standard hotels due to high population density, Hilton intends to establish its core brands, including Hilton Hotels, Homewood Suites by Hilton, and Hilton Garden Inn. The corporation's plans encompass launching several of its prestigious hotel brands, including Hilton Hotels, Homewood Suites by Hilton, and also Hilton Garden Inn.