Skift Take
Hilton signaled that hotel sector circumstances have shifted in a way that makes it more likely it would pivot from its 16-year strategy of creating brands and instead consider buying them.
Hilton executives said Wednesday that acquisitions are possible – a shift from the past 16 years when it has focused on creating new brands rather than buying up existing ones.
The comments came as rumors have surfaced that Hilton is in talks to acquire NoMad Hotels, a tiny brand of luxury lifestyle hotels, and Graduate Hotels, a collection of about 30 college-themed properties near universities.
Hilton, owner of 22 brands, such as DoubleTree and Waldorf Astoria, has invented brands like Tru and Spark to compete in key categories.
"The environment we're in is a little bit different," said Christopher Nassetta, Hilton president and CEO. "There is, for a lot of reasons, interest rates and otherwise, more stress in the system than normal, that probably presents more opportunity to do things like this. Things that are quite modest in my view and that are what I view as sort of tuck-in acquisitions."
"The summary is we have no different attitude [toward mergers and acquisitions]," Nassetta said. "We continue to look at everything. But the stress in the environment maybe provides a little bit more opportunity than we've seen in quite a long time."
Hilton Wants to Add a Luxury Lifestyle Hotel BrandWhat kind of hotel group