Hilton lays out groundwork for UK expansion strategy

Hilton's most recent UK hotel opening was the Hilton Bournemouth.

Hilton is planning to open more than 30 UK hotels in the next two years to increase the company's footprint in the region by around 25 percent with more in the pipeline, according to City A.M.

The new expansion strategy is part of the group's plan to make the UK the second-largest market for Hilton outside of the U.S., as tourism has boomed in the UK due to a weaker pound. 

London, York and Leeds also get new Hilton hotels while Woking, Surrey has already been confirmed to get a new high-rise Hilton property. “I think there will definitely be growth but certain segments will perform less strongly than others. But on average I think we will see positive growth year on year,” Simon Vincent, president of Hilton’s European, Middle East and Africa division, told City A.M. 

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

Hilton has also been increasing leisure offerings in existing hotels to meet consumer demand for more experiences. For example, the group just launched a new surf and turf restaurant at its Cambridge location. The UK currently has 130 Hilton-branded hotels, including brands like DoubleTree. 

According to HVS' latest data, demand for hotel stays has surged across the UK. RevPAR increased by eight percent in London. Meanwhile, Edinburgh, Belfast and Cardiff all saw double digit growth. In response to this boost in the industry, many hotel groups, including Hilton, have been preparing for even more growth in visitor numbers in the UK with over 7,500 new guestrooms opening during the H1 2017—a 40-percent increase from last year’s numbers. 

Suggested Articles

The company expects to open more than 30 new Comfort properties in the market by 2033 via its existing franchising agreement with Choice Hotels Japan.

While consolidated revenue for the quarter was up 10.9 percent as reported, it was up 4.1 percent on a like-for-like basis compared to Q3 2018.

Sam Schwartz has spent more than four years with First Hospitality, including most recently as a general manager.