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Hilton reveals expansion plans

By Tom Walker    06 Jun 2007

Hilton Hotels Corporation (HHC) has announced that it will open 25 new hotels in Russia, 15 hotels in the UK and more than 15 new hotels in the Caribbean and Central America throughout the next five years.

To manage the expansion plans, HHC has agreed three development alliances – with London & Regional Properties in Russia; Shiva Hotels in the U.K. and Ireland; and Caribbean Property Group for development within central America & the Caribbean.

The three deals 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.

Matthew Hart, HHC president, said: “These alliances will underscore our strategy to sign larger deals to develop a significant number of hotels in key growth markets around the world.

“We are committed to achieving our stated goal of adding 1,000 hotels outside of North America throughout the next 10 years."

In Russia, HHC’s deal with London & is expected to result in the development of 25 new hotels throughout an initial period of five years, encompassing selected brands within the Hilton Family of Hotels – including Conrad, Hilton and Hampton by Hilton – all of which HHC will manage.

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 the second quarter of 2008.

In the UK and Ireland, the company’s agreement with Shiva Hotels represents HHC’s first UK hotel franchise deal with a major property partner.

Shiva, a privately owned company, is looking to expand its existing interests in the hotel sector and has four hotel sites under development that will 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.

The four sites under development are a 350-room Hilton near Heathrow Terminal 5, a 200-room Hilton and a 120-room Hampton by Hilton in Leeds, and a 120-room Hampton by Hilton in Derby.

Through a strategic alliance agreement with Caribbean Property Group (CPG), a New York-based property investment group, HHC will work actively 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 Dominican Republic and Trinidad.

The company initially will focus on the Hilton Garden Inn brand, with plans to develop additional projects under the Hampton and Homewood Suites by Hilton flags, eventually.

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