Hilton Hotels Elaborates On South America Expansion Plans
-- Hotels, 9/14/2009 9:59:00 AM
Hilton Hotels Corp. joins industry peers and hotel investment community at SAHIC 2009 – 2nd South America Hotel & Tourism Investment Conference in Rio de Janeiro, hosted by HVS Argentina. As conference patrons, Hilton is committed to cementing its focus on South America as a target market for the company’s growth and reinforces its desire to introduce new Hilton Family brands to new markets, including its highly anticipated return to Santiago, Chile.
Late last year, Hilton announced plans to significantly increase its presence in South America over the next five years. Since last year’s announcement, Hilton has continued to make progress with new deals, construction debuts, recent openings, and unique design concepts.
Ted Middleton, senior vice president, managed development, for Hilton Hotels Corporation, explained, “Expanding our global platform is a strategic priority for Hilton and South America presents a great opportunity. We have identified a number of target markets with significant potential for growth and our dedicated South America development team is working diligently to introduce our exciting Hilton Family of brands throughout the region.”
Target Markets
Due to the size and strength of the Brazilian economy, Hilton anticipates that Brazil will be a key focus of its development activities in the region. Hilton’s growth plans include not only Brazil’s largest cities, São Paulo, Rio de Janeiro, and Brasilia, but also a number of secondary emerging cities and resort areas. Additionally, Hilton is prospecting opportunities in gateway and strategic markets such as Buenos Aires, Argentina; Santiago, Chile; Lima, Peru; Caracas, Venezuela; and Bogota, Colombia.
Brands
The senior executive also emphasized that while Hilton plans to develop all of its brands throughout South America, the company expects to initially focus on four of its brands, each delivering unique features to fit specific market needs:
§ Hilton brand for full-service hotel management agreements in key gateway cities
§ Doubletree by Hilton for full-service hotel conversions
§ Hilton Garden Inn to target the mid-market
§ Hampton by Hilton’s new Latin America proto-type for franchise multi-property opportunities
Recognizing that local influences can make a significant impact on the success of a brand, Hilton Hotels Corporation has developed a new design concept to help turbo charge the Hampton brand in the South American market. This prototype will be more cost effective to build, will build on the brand’s current differentiation, and will provide added value of limited food and beverage offering for a small cost. Hampton Hotels took the best elements and ideas from its successful US hotel model, combined them with European design, Latin American influences, and Latin America owner feedback to create functional zones that meet guest needs with flexibility - a variety of areas that provide the ultimate guest experience by giving travelers the choice to conduct business, exercise, enjoy a meal, relax or interact with fellow guests.
New Deals
Hilton Hotels Corporation has two management agreements currently in the works, bringing the South America development pipeline to seven hotels.
The company anticipates signing a multi-year management agreement for the first Hilton Family hotel in Chile and the first Hilton Garden Inn property in South America. The Hilton Garden Inn property will be located in Santiago and will mark Hilton’s return to the country’s capital. An official announcement is expected later this year.
The second is the official signing of a multi-year management agreement for the frequently discussed full-service Hilton hotel in the Patagonia resort destination of San Carlos de Bariloche, Argentina: Hilton Bariloche. Construction of the 190-guestroom Hilton Bariloche is expected to begin later this year with a scheduled completion in 2013.
Pipeline
The company’s pipeline in South America continues to advance as hotels break ground and opening dates approach. Currently, of the seven hotels in the pipeline, Hilton has five hotels under construction in exciting destinations:
- Embassy Suites by Hilton Valencia Downtown, Venezuela scheduled to open later this year
- Hilton Iguazu Resort, Argentina scheduled to open late 2010
- Hilton Ushuaia, Argentina scheduled to open in late 2010
- Hilton Salvador de Bahia, Brazil scheduled to open 2011
- Hilton Bogota, Colombia scheduled to open 2011
Recent Openings
In March 2009, the company opened the Doubletree Guest Suites by Hilton Paracas in Peru. The 124 suite hotel features all suite accommodation, residential style amenities, fully-equipped Doubletree by Precor fitness facility, kids club, recreational offerings, and an array of dining options. The hotel represents the brand’s second property in South America.
Hilton Hotels Corporation is perfectly positioned to grow the Hilton Family of brands in South America. The company has the ideal combination for success: a dedicated South American development team headquartered in Sao Paulo, targeted markets with great potential for growth, and exciting brands with unique features for specific market needs.
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