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Hilton’s Confidence, Accor’ Vegas, Entry and Asia-Pacific’s Lifestyle Boom

Rashaad Jorden photo
Rashaad Jorden
Lit hotel sign for a Hilton Garden Inn

Photo Credit: Exterior of a Hilton Garden Inn in New York City.  Skift

Skift Take

On today’s podcast we look at Hilton’s earnings, Accor’s way into Las Vegas, and why lifestyle hotels are booming in Asia.

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Good morning from Skift. It’s Thursday, July 24. here’s what you need to know about the business of travel today.

Hilton executives acknowledged that travel demand in the second quarter was soft, but the company is still confident about the future, writes Senior Hospitality Editor Sean O’Neill.

Hilton’s revenue per available room decreased by 0.5%, mainly due to declines in occupancy. O’Neill notes policy uncertainty in Washington this spring — related to trade deals, taxes, and regulations — led to lower-than-expected hotel bookings in the second quarter. 

But CEO Chris Nassetta said he saw several “green shoots” that he believed would drive stronger demand over the next two or three years. Nassetta added Hilton would add at least two brands to its portfolio. 

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Next, Accor said on Wednesday it’s entering the Las Vegas market with what will be its largest property worldwide, reports Senior Hospitality Editor Sean O’Neill. 

Accor reached a franchise deal with casino owner Phil Ruffin to bring Treasure Island, an almost 2,900-room resort and casino, into its portfolio. Accor’s ALL loyalty program, which has more than 100 million members internationally, will be able to offer a redemption opportunity on The Strip. 

O’Neill writes Accor’s announcement suggests the company is eager to make further inroads in the U.S. market. Accor said earlier this year that the U.S. is responsible for only about 5% of its worldwide room revenue. 

Finally, Asia Editor Peden Doma Bhutia delves into Asia-Pacific’s huge jump in lifestyle hotel rooms over the past decade.

Close to 65,000 lifestyle hotel rooms have been added in the region since 2014, a fourfold increase, according to a report by real estate consultancy JLL. In addition, JLL projects the lifestyle room supply to grow 34% by 2027.

While Marriott is projected to keep its lead as the region’s top lifestyle hotel group in 2027 in terms of room supply, Bhutia notes Hyatt is expected to become Asia-Pacific’s second-largest player, leapfrogging IHG.