US: Hilton is set to launch a lifestyle brand in 2014 to compete with the likes of Starwood’s W and Marriott’s Edition flags.
Chief executive Christopher Nassetta said Hilton, which began trading shares on the New York Stock Exchange on Thursday, is “working on” plans for a boutique or lifestyle brand.
Hilton began plans to launch a lifestyle brand, called Denizen, five years ago and was in discussions with developers in Abu Dhabi, London, Mumbai and New York. But in 2009 it was sued by Starwood which alleged that Hilton was using stolen confidential documents to develop Denizen.
Hilton settled with Starwood under the terms of an agreement that prevented it from entering the lifestyle segment for two years, a period expired in January 2013.
hilton.com
Editor’s Comment
The hotel industry has been eagerly awaiting Hilton’s entrance to the lifestyle hotel space, and there has been a measure of surprise that whispers haven’t started emanating from the company’s HQ sooner.
After getting its fingers well and truly burnt in the Denizen affair and subsequent Starwood lawsuit, Hilton will want to ensure its new offering is extremely strong. With the W brand going from strength to strength and a promising debut for Marriott’s Edition, Hilton has some stiff competition in the sector.
