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Hilton is looking to expand in Asia with a goal of 1,000 properties by 2025. It sees the most opportunity in luxury hotels.
During Hilton’s last earnings call in February, it noted that revenue per available room rose eight percent compared to 2019 in the Asia-Pacific region (excluding China). With borders reopening, a lot of this is attributed to Japan. In the past year, Hilton has signed onto over 10 luxury projects including Waldorf Astoria hotels in Australia, Malaysia, Vietnam, and two more in China (Xi’An and Shanghai Qiantan). The Conrad brand will also grow with properties slated for China in Xi’an, Chengdu, and Nanjing, plus, Nagoya in Japan and the Conrad Singapore Orchard. LXR will also open in Bali.
Demand for luxury travel is expected to continue to grow as 42 percent of consumers will seek luxury experiences per YouGov. McKinsey forecasts that the rapidly growing middle class, with more disposable income, will fuel growth potential of up to $10 trillion in the next decade.
Hilton’s recovery is largely dependent on China’s reopening. It operates 487 hotels there. Demand is expected to recover throughout the year.
Anthony’s Take: Hilton has grown on me after several recent stays in Las Vegas. Additional choices and growth within its portfolio are always welcome, especially aspirational, luxury hotels.
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