Hilton Launches Large-Scale Franchise Model in Asia Pacific
Hilton, the fastest growing hotel company in Asia Pacific and a recognized global leader in franchising, announced the launch of its large-scale franchise model in China. The business model will allow independent hotel owners in China to benefit from Hilton's innovative commercial strategies and extensive support network, as the company welcomes investors and owners to explore franchising opportunities with its award-winning upscale focused-service brand, Hilton Garden Inn.
Alan Watts, president, Asia Pacific, Hilton, said, "As a leading global hospitality company with over 100 years of experience managing world-class brands and operating industry-leading hotels, Hilton has always been committed to delivering best-in-class returns for owners and safeguarding the interests of our partners. We remain optimistic about travel industry recovery in the long term as we continue to see strong domestic leisure demand in various parts of Asia Pacific, and investors remain bullish on the hotel sector. Providing opportunities for franchised partnerships with Hilton Garden Inn - one of the strongest focused service brands in the market - is a great step towards winning the hearts and minds of strong, savvy independent hotel owners in China. We are confident that the new model will serve as a great opportunity for our owners to access one of Hilton's iconic brands and bring an exciting new entrant to their respective destinations."
With the launch of the new franchise model, Hilton is offering a Hilton Garden Inn brand prototype developed specifically for the Chinese market, which was originally launched in 2019. This prototype fulfils Hilton's commitment to providing guests with exceptional stay experiences, while also driving long-term investment success for owners. Under the program, owners can take advantage of attractive upfront investment costs, while the leaner operating model drives profitability and provides ease for day-to-day operations.
To date, Hilton has inked more than 100 deals to develop Hilton Garden Inn hotels in China, bolstering the company's confidence in the long-term growth of the focused service brand and its ability to cater to a rising middle class. The anticipated growth momentum also corresponds with the increasing demand for internationally branded hotels to meet evolving consumer needs, especially within second and third tier cities in China.
Clarence Tan, senior vice president, Development, Asia Pacific, Hilton, said, "The launch of the pure play franchise model and corresponding prototype enables independent owners to leverage the award-winning international brand recognition and build quality of Hilton Garden Inn. We have also heavily invested in our systems, training and processes to support owners as they adapt their hotels to local demand drivers. Beyond China, we are confident that this development model will thrive in key destinations across Asia, as we anticipate rising demand for hotels in this segment in the long term. We are always on the lookout for the right partners in the right locations, and we will absolutely be assessing the right time to introduce the franchise model to regional investors in Asia Pacific - helping them to capture the strong demand for midscale lodging solutions."
Alexandra Jaritz, senior vice president, Brand Management, Asia Pacific, Hilton, said, "As the fastest growing hospitality sector in China, focused service brands are primed to capture further market share. Hilton Garden Inn, our award-winning upscale focused service brand, currently has a global footprint of over 900 hotels, with 35 in China and 44 across Asia Pacific. The guest experience at our Hilton Garden Inn hotels in China has been tailored to the evolving preferences of Chinese consumers - all while remaining true to the brand's global pillars of positive, upbeat service, luminous spaces, modern amenities, and stylishly approachable design delivered at an affordable price point."