Maria Wood Real Estate Forum
NEW YORK CITY-Hilton Hotels Corp. has apparently wasted no time in taking advantage of soon-to-be status as a worldwide lodging company. After agreeing to buy its overseas counterpart, Hilton Group PLC, also known as Hilton International, for $5.7 billion late last year, the Beverly Hills, CA-based hotel firm has launched a new luxury collection that will be co-branded with the iconic Waldorf-Astoria name.
"The acquisition of Hilton International opens our brands to the world," said Matthew J. Hart, president and chief operating office of Hilton Hotels Corp., during a press conference here announcing the new initiative. The merger, which is expected to create the world's largest hotel company with nearly 2,800 hotels in 80 countries, is on schedule to close by the end of February or early March, Hart said.
Since 1964, HHC and Hilton International have operated in different geographic spheres, with HHC in North American and Hilton International everywhere else. In addition to the 1,245-room Waldorf-Astoria hotel here, three other hotels are now part of the Waldorf-Astoria collection: the 780-key Grand Wailea Resort Hotel & Spa in Maui, HI; the Arizona Biltmore Resort & Spa, a 738-room property in Phoenix; and the 800-key La Quinta Resort & Club in La Quinta, CA. Hilton Hotels Corp. owns the Waldorf-Astoria here, while the other three properties are held by Orlando-based CNL Hotels & Resorts Inc. As of Feb. 1, Hilton will manage those properties.
Thomas J. Hutchison III, CNL's CEO, said that it was "fitting" for those properties to take the Waldorf designation. In acquiring luxury properties in the future, Hutchison said the company would consider using the Waldorf affiliation.Hart said the collection would expand by either co-branding with existing hotels or ground-up development in premier locations in gateway cities. No other hotels have been targeted yet for a Waldorf banner, but Hart stated that more growth would come from the re-branding of existing hotels rather new development. He said that there are probably more opportunities for new luxury hotel development outside the US.
What makes a hotel a "Waldorf" depends on the property and level of service. But Hart admitted the designation is subjective. "Once we see it, we'll know it," he said.
Hilton already controls another luxury chain, Conrad Hotels. Yet Hart said he believes Hilton will be large enough to manage two luxury brands. In fact, current Conrad Hotels are eligible to become part of the Waldorf-Astoria Collection since existing hotels can keep their established names and simply add the Waldorf-Astoria Collection designation. Any new builds will take the Waldorf-Astoria name and be managed by Hilton, Hart added. The newest Hilton brand will also consider being part of a hotel/residential project, according to Hart.
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