Firm in­tro­duces its fifth ho­tel brand

The Star Early Edition - - COMPANIES -

HIL­TON World­wide Hold­ings in­tro­duced its fifth new ho­tel brand since 2009 in the lat­est bid to in­crease earn­ings by fran­chis­ing prop­er­ties. The Ta­pes­try Col­lec­tion by Hil­ton will be up­scale ho­tels, in the same gen­eral seg­ment as the com­pany’s Dou­bleTree lo­ca­tions. Ta­pes­try prop­er­ties may in­clude a bar with food ser­vice and a gym, but not nec­es­sar­ily restau­rants or meet­ing space. Seven ho­tels had signed let­ters of in­tent to con­vert to Ta­pes­try sites, and 35 other deals were in progress, Hil­ton said yes­ter­day. The first site will open by the third quar­ter, with a goal of 50 Ta­pes­try ho­tels by 2020. Hil­ton has sought to ex­pand through fran­chise and man­age­ment con­tracts, rather than ac­qui­si­tions. The com­pany last year in­tro­duced Tru, a line of low-cost, fran­chised ho­tels with hip decor. “It’s eas­ier to grow fran­chises than to grow man­aged ho­tels,” said Thomas Allen, an an­a­lyst at Mor­gan Stan­ley. Hav­ing more brands al­lowed Hil­ton to ex­pand in de­sir­able lo­ca­tions where it al­ready has a pres­ence, Allen said. The com­pany said it might man­age some of the Ta­pes­try ho­tels in ad­di­tion to earn­ing fran­chise fees. – Bloomberg

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