Hilton's Record Development Pipeline Keeps Growing

Hilton continues to outpace the rest of the hotel sector with its record development pipeline, which expanded by nearly 30,000 rooms in the first quarter to a total of 472,300 rooms under development.

About half of Hilton’s pipeline is under construction, CEO Chris Nassetta said during a call with investors last week. About 40% of the rooms under development by Hilton are in the U.S.

“We continue to have more rooms under construction than any other hotel company, accounting for more than 20% of industry share and nearly four times our share of existing supply,” Nassetta said.

Hilton expanded its pipeline in the first quarter with acquisitions of the NoMad and Graduate Hotels brands. Earlier this month, Hilton acquired a majority controlling interest in New York-based hotel developer Sydell Group to expand the NoMad brand.

NoMad is positioned as Hilton’s first brand that combines luxury and lifestyle. Under the deal with Sydell, Hilton will lead all future development for the NoMad brand, while Sydell will continue to handle design, branding and management.

NoMad hotels are designed to make guests feel like residents of “some of the world’s most sought-after neighborhoods,” Hilton said, with local art featured in each guest room. There currently are two NoMad outlets, in London and Las Vegas—the Las Vegas hotel was not part of the deal with Hilton and will be rebranded.

Hilton is planning to expand the NoMad brand by building outlets in more than 100 high-end markets, Nassetta said during the earnings call.

Last month, Hilton acquired Graduate Hotels, a lifestyle brand which specializes in hotels near college campuses, from Adventurous Journeys Capital Partners (AJ Capital).

The $210M deal that gives Hilton worldwide rights to the brand and franchise agreements for existing and signed Graduate hotels. AJ Capital will continue to own the properties, which will operate under long-term Hilton franchise agreements.

Graduate’s current portfolio of 37 hotels are located in some of the largest college towns in the U.S., including Ann Arbor; State College, PA; Knoxville, TN; and Palo Alto. The brand, which also has outlets at Oxford and Cambridge in the U.K., is scheduled to open hotels in Austin, TX and Princeton, NJ.

Each Graduate Hotel is designed to reflect the unique character and history of the local university, with brand marketing touting “the perfect setting for gamedays, reunions, graduations and campus visits.”

Hilton’s rapidly expanding lifestyle portfolio includes Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton and Motto by Hilton, all of which were launched in the past 10 years to serve a growing market for localized travel experiences.

For the rapidly increasing number of travelers looking to prioritize exploration and adventure, Hilton recently unveiled a partnership with the outdoor hospitality company, AutoCamp, which has several locations adjacent to national parks in the U.S.