A Cautious Hilton Unlikely to Buy Belmond
Skift Take
Hilton is the kind of hotel company that's adamant about sticking to its guns. It says the future outlook looks fairly solid — unless, of course, fears of a looming recession come true.
Hilton CEO Christopher Nassetta is the type of chief executive who doesn't waver from his views that easily.
In a third quarter earnings call with investor analysts on Wednesday, Nassetta was asked a number of times whether he's reconsidered his cautious position regarding mergers and acquisitions.
"The short answer is no," Nassetta said. "For the 11 years I've been here, the filters have literally remained the same. That something really works well strategically in terms of brands and our brand portfolio versus what we can do in our own, and does it — can we do it in a way that's really accretive to value?"
Nassetta added, "We'll look at almost everything" but he said that everything to date that Hilton has reviewed "has not made sense."
Hilton, unlike its peers, has pursued an organic growth strategy where others have been much more acquisitive in an industry undergoing increasing consolidation. Just this month, Hyatt Hotels announced its intent to buy Two Roads Hospitality for $480 million. In 2016, Hilton’s rival Marriott bought Starwood Hotels & Resorts for $13.3 billion, thereby creating the world’s largest hotel company.
Earlier this month, a news report listed Hilton among a list of suitors pursuing the troubled luxury hospitality company, Belmond. While analysts' questions hinted at the possibility of Hilton acquiring some or all of Belmond, the company was never mentioned by name.
However, Nassetta's comments seemed to suggest Hilton was not necessarily an eager acquirer for Belmond, or other luxury hospitality brands or assets.
Answering a question related to Hilton's luxury strategy and the potential for acquisition in that space, Nassetta said: "The things that you could make available don't
