Hilton to Hit 1,000-Hotel Milestone in Europe and the Middle East

Hilton is poised to cross the 1,000-hotel threshold in its Europe, Middle East, and Africa (EMEA) division this spring, and was opening about one hotel per week in the region last year.

The company has another 500 properties in development, and more than half of those are already under construction, said Simon Vincent, executive vice president and president of the region for Hilton.

Hilton's expansion strategy hinges on matching the right brands to the right markets. Recent launches in the region included Tempo by Hilton and Spark by Hilton.

Tempo by Hilton, a lifestyle brand, is a good example of the strategy. "It's our stylish lifestyle brand...designed for a younger generation of travelers," Vincent told Skift. 

The brand's emphasis on wellness and design, coupled with its placement in cities like Belfast, Lisbon, and Reykjavik, aims to keep Hilton ahead of market trends. 

“We're pretty confident that we've got the right formula. It's taken off pretty well in the [United] States. It's new to Europe, Middle East and Africa, but the initial level of interest has been very strong.”

Spark by Hilton, a premium economy brand, shows how Hilton is trying to broaden its customer base. 

"It's just taking advantage of a niche we haven't been in," he said. "We believe there's an entry point just below [Hampton] that we can appeal to and a customer just below that level that we can appeal to. ... Our first ones are trading pretty well."

More Conversions and Franchises

Conversions have played a crucial role in Hilton's expansion in mature markets like the UK.

“There's only limited space in the UK, and many hotels have already been built, so a lot of conversion activity is coming in,” said Vincent.

The franchise model has also gained traction, particularly in the UK and Western Europe. 

"Probably 60% of our pipeline is franchised hotels," Vincent said. "This comes with market maturity.”

Adapting to Regional Dynamics

Hilton's growth strategy involves adapting to the distinct dynamics of different sub-regions within EMEA. 

"In contrast, the Middle East is about building new hotels," Vincent said. "There's traditionally been a lot of growth in luxury and the upper end of the market. And now there are real opportunities in the mid-market, in that market."

The company's approach involves balancing global brand standards with regional relevance. 

"Brands have to be global in strategy and in vision but regional in execution," Vincent said. "You’ve got to be clear where we're willing to flex the brands to meet local needs without diluting the overall power of the overarching brand."

Loyalty Play

The Hilton Honors loyalty program also plays a crucial role in driving repeat business and customer engagement. 

"There's an insatiable appetite for loyalty," Vincent said.

“You can almost plug a hotel into the Hilton system, and you'll guarantee yourself 50% of occupancy will come from the loyalty program. And so that business is direct, it is the most cost-effective business into the hotel.”

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