MCLEAN, VA—When Matt Sparks, SVP, luxury development, Hilton Worldwide, joined the company in 2011, CEO Christopher Nasetta made a commitment to position Conrad Hotels & Resorts and Waldorf Astoria Hotels & Resorts as premium luxury brand offerings in North America and internationally.
Today, Conrad Hotels & Resorts has doubled its pipeline, while Waldorf Astoria Hotels & Resorts continues to grow its portfolio. “I’m pleased to be a part of this growth, and happy to say that we are well on our way to meeting the increased demand for luxury products,” said Sparks. “Hilton Worldwide is delivering best-in-class hotels in key gateway locations that meet the growing needs of global luxury travelers.”
With a current portfolio of 24 properties, Conrad Hotels & Resorts is positioned to double its portfolio with 22 executed agreements for new properties in the pipeline. Specifically in North America, the luxury brand plans to open new properties in Fort Lauderdale, FL, and Chicago in 2016 and Washington, DC, in 2018. Internationally, Conrad has a pipeline of more than 10 properties in Asia-Pacific alone, including the newly announced Conrad Ningbo in China, scheduled to open in December 2019.
Sparks attributes the success of Conrad Hotels & Resorts to its product positioning in the luxury segment. “We call Conrad ‘smart luxury’ for today’s travelers who are seeking to define their luxury hotel experience in their own way,” he said. As an example, Sparks pointed to the consumer appeal of the brand’s guest-driven experiences such as the Conrad Concierge app, which gives travelers the ability to customize the details of their hotel stay via a smartphone or tablet.
Launched in 2012, the mobile app gives guests mobile access to all concierge features and hotel services, including the option to pre-check-in, arrange car transport and select bespoke amenities—from the type of pillow they prefer and what newspaper they would like delivered to their room, to what brand of bath amenities they’d like waiting in their room—all before they arrive.
Since 2007, Waldorf Astoria Hotels & Resorts has increased its footprint more than five times to a portfolio of 26 gateway cities including Chicago, Amsterdam, Beijing, Dubai, Jerusalem and Shanghai. The brand’s pipeline of nine additional hotels includes key destinations such as Bali, Bangkok and Beverly Hills, CA.
“Waldorf Astoria is positioned as an upper-luxury, truly uncompromised guest experience,” said Sparks. “Waldorf Astoria creates unique authentic moments through the delivery of True Waldorf Service such as personal concierges to deliver unparalleled, bespoke service.”
While construction costs continue to pose challenges for developing luxury hotels and resorts in North America, Hilton Worldwide has positioned its luxury brands to take advantage of the benefits associated with developing large-scale, mixed-use projects. The inclusion of luxury residences has led to increased profitability. “It’s a compelling offering,” said Sparks. “The pricing premium supports the development of the hotel.” Sparks also explained that the high-end guestrooms serve as a marketing tool for the luxury residences. Additionally, residents benefit from the property’s guest services, such as housekeeping and valet services.
—Matthew Marin