Hilton Hotels Corporation (NYSE:HLT) announced that, according to data released earlier today by Lodging Econometrics (LE), the nation`s hotel real estate investment and supply side research authority, the Hilton Family of Hotels has taken the lead among the top 10 companies in hotel development. LE statistics as of September 30, 2003, show that Hilton ranks first in the Active Development Pipeline (hotels expected to open or begin construction in the next 12 months), with 279 hotels and 36,667 rooms.
Additionally, there are 39 hotels and 5,025 rooms represented by properties in early planning stages (more than one year from start of construction), according to LE. Separately, the Hilton Family has approximately 70 deals approved or approved and in design (including conversions), bringing its current total development pipeline to approximately 390 hotels and 52,000 rooms.
“As expected, overall hotel development has declined during the three-year downswing in the hotel economy. However, strong brands—like the Hilton Family of Hotels—have continued to attract substantial numbers of developers and investment capital,” said Tom Keltner, president—brand performance and franchise development group, Hilton Hotels Corporation. “Representing the first time that Hilton has taken the lead, we have been gaining share since our merger with Promus several years ago, today accounting for nearly 34 percent of the hotel rooms in the active pipeline among the top 10 companies in hotel development, as reported by LE.
“The high consumer acceptance of our brands, our powerful HHonors(R) guest reward program, the integrity of our brands, and our ability to cross-sell between our brands are seen as compelling advantages by developers and lenders alike, resulting in continued unit growth,” he noted.
Hampton(R) leads Hilton`s development activities, representing approximately 30 percent of the company`s total rooms pipeline, followed by Hilton Garden Inn(R), representing 26 percent, and Homewood Suites by Hilton(R), representing 10 percent of Hilton`s total rooms pipeline.
“Development interest currently is concentrated primarily in the mid-priced segments,” Keltner continued. “Nonetheless, our four full-service brands (Hilton(R), Conrad(R), Embassy Suites Hotels(R), and Doubletree(R)) continue to enjoy active development, representing a combined 34 percent of the company`s total rooms pipeline.”
Keltner said that developer interest in the Hilton family of brands has been strong throughout the downturn and is increasing as the hotel industry begins to show signs of recovering. “Hilton`s brands outperformed their counterparts during this downturn, all gaining market share, and are expected to continue to outperform their respective competitive sets as the economy rebounds.”
The company remains on target to add approximately 115 hotels and 15,000 rooms to its system in 2003.
Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company. The company develops, owns, manages, or franchises approximately 2,100 hotels, resorts, and vacation ownership properties. Its portfolio includes many of the world`s best known and most highly regarded hotel brands, including Hilton(R), Conrad(R), Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton Garden Inn(R), Hilton Grand Vacations Company(R), and Homewood Suites by Hilton(R). For more information on the Hilton Family of Hotels, visit www.hiltonworldwide.com.
HHonors(R) trademark is owned by Hilton HHonors Worldwide, L.L.C. Hilton HHonors membership, earning of Points & Miles(R), and redemption of points are subject to HHonors Terms and Conditions.
The following service marks are owned by Hilton Hospitality, Inc.: Hilton(R), Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton Grand Vacations Company(R), and Homewood Suites by Hilton(R). Conrad(R) is owned by Conrad Hospitality, LLC.