Hilton snatches Small Luxurious Lodges of the World alliance away from Hyatt

Hyatt took one other blow on the partnership entrance this week, as Hilton is now poised to be the brand new unique accomplice with Small Luxurious Lodges of the World, a platform of 560 impartial luxurious motels world wide.

The partnership is a significant increase to Hilton’s luxurious community, which presently depends on manufacturers like Waldorf Astoria Lodges & Resorts, Conrad Lodges & Resorts and LXR Lodges & Resorts, which is a tender model of independent-style motels that faucet into the Hilton reserving and loyalty programs.

SLH has been a Hyatt accomplice since 2018 and was a significant increase for Hyatt in Europe, the place it had a smaller footprint — particularly previous to the Apple Leisure Group takeover. That is the second blow to Hyatt on the partnership entrance in lower than a yr, as MGM Lodges & Resorts ditched the lodge firm final yr in favor of a partnership with Marriott slated to start early this yr.

“We’re thrilled to start this win-win relationship with Hilton because it brings thrilling potentialities for each manufacturers,” Shaun Leleu, chairman of Small Luxurious Lodges of the World, stated in a press release. “Hilton clients, together with Hilton Honors members, achieve entry to our unrivalled assortment of remarkable boutique motels, whereas our properties take pleasure in amplified attain to a loyal and discerning viewers. It is a recreation changer for independently owned motels on a world scale.”

Hyatt didn’t reply to TPG’s request for remark in time for publication, however World of Hyatt members aren’t solely out of luck on the bespoke luxurious lodge entrance: The corporate acquired the Mr & Mrs Smith reserving platform of luxurious motels final yr.

The SLH-Hilton partnership, which is able to totally roll out within the coming months, means all Hilton Honors members will be capable to e-book a keep at a taking part SLH property and earn and redeem Hilton Honors factors. Collaborating SLH properties will seem on Hilton’s reserving channels, which means even non-Hilton Honors members who e-book direct can nonetheless go for a keep at an SLH-partnered lodge.

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Given the discharge’s use of “taking part,” it seems not each SLH property will participate within the Hilton partnership (just like the way it labored with Hyatt).

“This relationship with Small Luxurious Lodges of the World will grant Hilton clients and Hilton Honors members entry to a group of high-end boutique motels in thrilling new luxurious journey locations, giving them extra methods to dream, e-book, and earn and redeem factors with Hilton,” Chris Silcock, Hilton’s president of worldwide manufacturers and industrial providers, stated in a press release.

Hilton’s luxurious push

The SLH partnership announcement arrived the identical day Hilton reported a $1.15 billion revenue for all of 2023, together with $150 million for the final three months of the yr. Eyes are nonetheless on what’s occurring on the firm and its push additional into the posh and life-style house.

Stories emerged this week Hilton is contemplating an acquisition of Graduate Lodges, a smaller chain of life-style motels in faculty cities or cities with a major larger schooling presence. However the firm can be reportedly contemplating an acquisition of NoMad Lodges, a two-property model that might unlock the door for Hilton’s ambition to function within the luxurious life-style lodge sector.

Given SLH has a major mixture of conventional luxurious motels, it is possible Hilton would nonetheless be contemplating a further model play with a purpose to higher compete within the luxurious life-style sector presently dominated by gamers like Marriott’s Version and Hyatt’s Alila.

This story will probably be up to date following this morning’s Hilton earnings name.

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