Skift Take

Lifestyle hotels are making up a bigger part of the development pipeline - one way to bring in higher daily rates.

Hilton Worldwide said Monday it’s set to double its current count of lifestyle hotels to 700 by 2028. It appointed Kevin Osterhaus as its new global lifestyle president to help oversee the effort.

The hotel group plans to open more than 100 lifestyle hotels this year, bringing its total to over 400.

Hilton’s growth strategy in the lifestyle category is underpinned by its March purchase of Graduate Hotels and April acquisition of NoMad Hotels. In the next couple of months, more than 30 existing Graduate locations and NoMad’s flagship London hotel will be hooked into Hilton’s booking channels.

Osterhaus, previously president of Graduate Hotels, will oversee the growth, design, and development of Hilton’s lifestyle brands. For instance, he’ll be in charge of the Curio Collection by Hilton. This soft brand is expected to add nearly 30 properties this year, including its first ones in Croatia and Lithuania.

Andrew Zobler, founder and CEO of Sydell Group, will lead the NoMad brand and be responsible for design, branding, and hotel management. Hilton, under the direction of Kevin Jacobs, Hilton’s chief financial officer and president of global development, will lead future development.

Broader Boom in Lifestyle Hotels

What’s a “lifestyle” hotel? It’s a property run by a major chain that evokes a boutique feel. It may have eye-catching decor, such as local artwork. It almost always includes a cocktail bar or cafe.

According to STR, lifestyle hotels are expected to make up 23% of the hotel development pipeline worldwide by 2025. 

STR reported that over the past decade, lifestyle hotel average daily rates have achieved a $33.60 premium over non-lifestyle hotel average daily rates.

UPDATE: “For us, lifestyle is a response to customer demand and not necessarily an incremental rate play,” said Chris Silcock, president, global brands and commercial services, in response to this article.

Accommodations Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.

Read the full methodology behind the Skift Travel 200.

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Tags: future of lodging, hilton, Hilton development, hotel development

Photo credit: The mountaineering-themed rooftop bar of the Graduate Hotel in Seattle, near the University of Washington campus. Graduate Hotels

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