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After not acquiring a brand for 16 years, Hilton has now acquired its second in a month. The hotel giant is clearly hungry for growth.
Hilton said Wednesday it had acquired a majority controlling interest in Sydell Group, the owner of NoMad Hotels.
The companies didn’t disclose the financial terms of the deal. Hilton said the transaction has closed and no further regulatory approvals are needed.
Hilton expects to build up to 100 NoMad hotels and has about 10 “already in advanced stages of discussion with Sydell,” the hotel giant said in a statement.
Under the deal announced Wednesday, Sydell will design, brand, and manage the NoMad brand while Hilton will lead development. NoMad will join Hilton’s rewards program.
Sydell Group’s NoMad currently has luxury properties in Las Vegas and London. The boutique hotel brand, invented by Ron Burkle and Andrew Zobler in 2012, will fit Hilton’s stated need for an international offering for luxury lifestyle hotels.
Hilton has said the luxury lifestyle category (think: boutique hotels) resonates with guests who want a distinctive set of designs, amenities, and services and owners who want a straightforward and cost-effective concept to replicate and run.
Hilton said in July it had begun “development work” internally on creating a luxury lifestyle brand. However, it decided to speed up the development process by acquiring an existing brand.
“By pairing an already proven brand concept that’s ready for expansion with the power of Hilton’s commercial engine, we are accelerating our ability to drive growth in the luxury lifestyle segment,” said Chris Silcock, president, global brands and commercial services.
NoMad faced financial troubles during the pandemic. Sydell Group had to close two of its NoMad hotels in New York and Los Angeles. The NoMad Las Vegas, in an MGM Resort property, is excluded from the deal and will rebrand.
The absorption of Sydell Group’s NoMad brand is Hilton’s second hotel brand acquisition, after 16 years without brand acquisitions. Hilton said on March 14 that it planned to spend $210 million to acquire Graduate Hotels, a brand that builds and runs 33 hotels near U.S. and U.K. universities.
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Tags: hilton, hotel brands, lifestyle brands, lifestyle hotels, luxury hotels, mergers and acquisitions, NoMad Hotels, sydell group
Photo credit: A suite at the London edition of Nomad Hotels, a brand now part of Hilton's network. Photo by Benoit Linero. Source: Sydell Group.