Hilton
Hotels Corporation (NYSE:HLT) today announced that the company will form three major development alliances with the intention to introduce more than 15 new
Hotels in the Caribbean and
Central America, 25
Hotels in Russia and at least 15
Hotels in the U.K. throughout the next five years.
HHC has agreed to work with Caribbean Property Group for development within
Central America & the Caribbean;
London & Regional Properties Limited in Russia; and Shiva
Hotels Limited in the U.K. and
Ireland The three development alliances follow the partnership deals recently announced in
India and
China which are expected to result in 100 new
Hotels in those markets throughout the next five to seven years.
"These important alliances will reinforce our position as the premier global
Hotel company and underscore our strategy to sign large deals with major investors to develop a significant number of
Hotels in key growth markets around the world," said Matthew J. Hart, president and chief operating officer, Hilton
Hotels Corporation. "We are well on our way to achieving our stated goal of at least 1,000
Hotels outside of North America over the next 10 years."
Caribbean &
Central America
Through a strategic
Alliance agreement with Caribbean Property Group (CPG), a New York-based, major property investment group, HHC will work actively with CPG to develop focused-service, franchised
Hotels within certain defined markets in
Central America and the Caribbean. Initially, targeted markets include major cities and destinations in
Puerto Rico Costa Rica Panama the
Republic hotels">Dominican Republic and
Trinidad CPG will receive certain preferred development rights in return for meeting certain goals and timetables.
"This agreement ideally supports our international development strategy to bolster the Hilton Family of
Hotels presence in growing markets where our brands are either underrepresented or absent," said Tom Keltner, Chief Executive Officer - Americas & Global Brands, Hilton
Hotels Corporation. "CPG is a well respected developer with invaluable insight in these markets, and we are confident that they will help us achieve these goals."
The company initially will focus on the Hilton Garden Inn brand, with plans to develop additional projects under the
Hampton by Hilton and
Homewood Suites by Hilton flags, eventually.
HHC began its business relationship with CPG with the recent signing of management agreements for two existing full-service
Hotels in
Costa Rica owned by a joint venture in which CPG holds an 85 percent ownership interest. Currently undergoing major renovations, the
Hotels will be re-branded and re-opened in the 2008 first quarter as the Hilton
Papagayo and the Doubletree by Hilton
Puntarenas in
Guanacaste and
Puntarenas Costa Rica respectively.
"The region is ripe for focused service
Hotel development," said Barry Breeman, vice chairman, Caribbean Properties Group. "The economies have strengthened in the region over the past five years. Today, there is a good base of first-class, full-service
Hotels and resorts, but a very limited number of mid-market, focused service
Hotels especially in the premium branded sector. In addition to these markets and this segment being significantly underserved, we believe developing under the established Hilton Family of
Hotels will give instant credibility to the projects. And as these projects succeed, we believe they will act as catalysts to help further strengthen local economies and development of other real estate classes."
Russia
In Russia, which is a priority international development market for the company, HHC will enter into a 'Preferred Development Alliance' with
London & Regional Properties Limited (L&R). This agreement is expected to result in the development of at least 25 new
Hotels in an initial period of five years, encompassing selected brands within the Hilton Family of
Hotels including
Conrad Hilton, Doubletree by Hilton, Hilton Garden Inn and
Hampton by Hilton
Hotels all of which HHC will manage.
"Russia is an outstanding market in which to pursue
Hotel development given the powerful combination of improving economics and favourable demographics," said Ian Carter, chief executive of Hilton's International Operations. "There is almost a total absence of internationally branded properties throughout the regional cities of Russia.
In
London & Regional, we have a blue-chip owner; Hilton has enjoyed a long-standing trading relationship with this company that is comprised of highly experienced developers with a strong appetite for growth. With their support, we aim to become the market leading international
Hotel company in Russia."
"The Hilton name is a powerfully strong brand and Russia offers tremendous potential as there are 11 major cities with a population of more than 1 million people," said Ian
Livingston of
London & Regional. "With the multi-brand approach that Hilton
Hotels Corporation now has, the company is able to offer solutions in all travel sectors."
The development focus in Russia will be in
Moscow and St.
Petersburg as well as key regional cities. The first
Hotel expected to be included in the deal will be in the centre of Novosibirsk (Russia's third largest city) where L&R currently is developing a mixed-use
Hotel and office project that features a 186-room Doubletree by Hilton. This
Hotel is expected to open in the second quarter of 2008.
In addition, and separate from this deal, HHC's first Hilton
Hotel in Russia will be the 275-room Hilton
Moscow Leningradskaya, which opens later this year.
U.K. &
Ireland
In the U.K. and
Ireland also is a priority development market for HHC, the company will enter into a preferred development
Alliance with Shiva
Hotels Limited, representing its first U.K.
Hotel franchise deal with a major property partner. The agreement is expected to result in the addition of at least 15 new
Hotels and will focus on the following Hilton Family of Hotels: Hilton, Doubletree by Hilton, Hilton Garden Inn and
Hampton by Hilton.
Shiva, a privately owned company, is looking to expand its existing interests in the
Hotel sector and has four
Hotel sites under development that are expected to be included in this agreement. Two of the new sites will be
Hampton by Hilton
Hotels representing the brand's first introduction in the U.K.
Rishi Sachdev, managing director of Shiva
Hotels said "I am excited by the opportunity to develop and grow the business in partnership with Hilton, which has a strong, international presence and an excellent reputation. I believe that combining the Hilton family of brands with our development experience and operational expertise is a winning formula."
The four sites under development are a 350-room Hilton near
Heathrow Terminal 5, a 200-room Hilton and a 120-room
Hampton Inn by Hilton in
Leeds and a 120-room
Hampton by Hilton in
Derby
"The U.K. &
Ireland is a very important market for Hilton, given the strength of the economy and our already strong presence with 75 properties," said Carter. "The introduction of additional brands within the Hilton Family of
Hotels for the first time gives us the ability to attract new owners and operate across a number of market segments from luxury to mid-price, appealing to guests at different
Price points.
"These significant alliances are indicative of how we would like to grow internationally. We aim to make a big impact in each of our core development markets and achieve market leadership across major
Hotel segments through ventures with large ownership groups."
About
London & Regional(L&R)
L&R is one of the largest private property companies in Europe with investments, developments and business interests exceeding Eur 10 billion in over 12 countries including the UK, Scandinavia,
Germany Poland South Africa Russia and
Panama Within their property investment portfolio, L&R own over 50
Hotels including
London Hilton on Park Lane, The Trafalgar in
London and the Hilton
Frankfurt In Russia, L&R has invested over Eur 500 million in the commercial property market since 2005 including prime office buildings, retail centres,
Hotels logistics facilities and pipeline development schemes.
About Shiva
Shiva is owned by Rishi Sachdev, Managing Director and Ramesh Sachdev, Director. Rishi graduated from
Cambridge University and joined Lehman Brothers as a derivatives trader. He left in 2001 to pursue a more entrepreneurial career, initially focusing on mixed use commercial property developments. Having developed a number of successful schemes in the UK, he recognized the growth potential in the branded mid-market
Hotel sector and started Shiva
Hotels in 2003.
About Caribbean Property Group(CPG)
CPG is focused on making investments in primary real estate assets in the Caribbean and
Central America. The company owns approximately $2 billion in real estate assets in
Puerto Rico including 5.8 million square feet of retail space, 2.2 million square feet of warehouse space and 300,000 square feet of office space. CPG also owns two major hotel-casinos, both in
San Juan CPG, along with joint venture partners, focuses on acquiring income-producing, fixed real estate assets in the Caribbean and
Central America across four platforms-hotel, retail, office and industrial.
AboutHilton
Hotels Corporation(HHC)
HHC is the leading global hospitality company, with more than 2,800
Hotels and 480,000 rooms in 76 countries and territories, including 100,000 team members worldwide.
The company owns, manages or franchises a
Hotel portfolio of some of the best known and highly regarded brands, including Hilton®, Conrad®Hotels & Resorts, Doubletree®, Embassy Suites Hotels®,
Hampton Inn®,
Hampton Inn & Suites®, Hilton Garden Inn®, Hilton Grand Vacations(TM),
Homewood Suites by Hilton®and The Waldorf=Astoria Collection®.
The Hilton Family of
Hotels adheres to founder
Conrad Hilton's philosophy that, "It has been, and continues to be, our responsibility to fill the earth with the light and warmth of hospitality." The company put a name to its unique brand of service that has made it the best known and most highly regarded
Hotel company:be hospitable®. The philosophy is shared by all brands in the Hilton Family of
Hotels and is the inspiration for its overarching message of kindness and generosity.
