Conrad Moves Into U.S.; Brands Waldorf Towers

NEW YORK— Showing its intent to expand into the U.S., Conrad Hotels has put its name on The Waldorf Towers, here. The luxury property, within the Hilton Hotels-owned Waldorf=Astoria, will now be known as The Waldorf Towers, a Conrad Hotel, making it the first Conrad property in North America. And, according to Dieter Huckestein, executive vp for Hilton Hotels Corp. and president – hotel operations owned and managed, this won’t be the last. This move comes after Hilton Hotels Corp. and Hilton International earlier this year announced plans to relaunch the Conrad brand as a joint venture, with the goal of expanding the five-star flag’s presence throughout the world. The branding of The Waldorf Towers will “finally move the five-star Conrad division back to the United States.,” said Huckestein. “The intention back in the ‘80s was to use Conrad as a five-star brand. [And now] this will strategically complete Hilton, with 11 brands and with Conrad positioned as a five-star hotel.” Conrad Hotels— headquartered in Brussels— represents the luxury portfolio of the Hilton set of hotels, and was originally founded in 1982 as Hilton Hotels’ international operating subsidiary. Then in November of 2000 Hilton Hotels partnered with Hilton Group plc in a joint venture to expand Conrad on a worldwide basis. Currently, Conrad operates 13 properties in locations that include London, Istanbul, Hong Kong, Singapore, Cairo and Dublin— the last of which was named the Business Hotel of the Year for 2001 in the Georgina Campbells Jameson Guide to Ireland 2001, noted Huckestein. The expansion of Conrad Hotels into the U.S., and North America will further enhance the brand’s presence in the luxury segment on both sides of the Atlantic. Indeed, the Conrad name is competing in a set that includes Four Seasons and Marriott International’s Ritz-Carlton, said Huckestein, as well as Marriott’s venture with Bulgari SpA, Bulgari Hotels & Resorts, and Starwood’s St. Regis brand, which is now receiving a big push. Huckestein outlined Conrad’s growth strategy, and explained that the brand will move into major U.S. gateway cities, starting with The Waldorf Towers, which is a hotel within a hotel, located inside of the Waldorf=Astoria here. He also sees Conrad expanding into some select resort areas. “[In fact], there are two [resort properties]coming up internationally,” he said, quickly noting that because they were “not finalized yet,” he couldn’t be specific. “It’s a win-win position to move forward in major gateway cities in the U.S., as well as internationally… We’ll be opening one in Bangkok very soon, and two are under construction internationally,” continued Huckestein. The 400-room Conrad Bangkok is slated to open in 2002, and another property, the 700-room Conrad Jakarta, is expected to open in 2004. And although Huckestein declined to name any U.S. cities, he did say that, “We have four or five serious discussions in the U.S. going on now.” He further pointed out that while he sees “potential for conversion” of some properties, Hilton will be “very selective” in choosing Conrad locations, and will also be looking in Mexico and Canada. “We can’t do this on every corner because Conrad has very specific brand standards to maintain… We will start working with The Waldorf Towers, a Conrad Hotel, and see how it goes, learn from it and [examine]other areas.” Both Huckestein and Waldorf=Astoria GM Eric Long, agreed that The Waldorf Towers would be a fitting home to the Conrad name. “We will have the infrastructure of an 180-key hotel for a small luxury hotel that you wouldn’t be able to afford otherwise,” noted Long, referring to how the new Conrad property will benefit from its location. Waldorf=Astoria and The Waldorf Towers, a Conrad Hotel, will be continue to operate separately, noted Huckestein, with different types of brand standards and marketing. However, items such as using Hilton HHonors points and employing the same food service wil