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Hilton to Offer a Hostel Type Brand
Hilton Worldwide, the biggest hospitality company in the world in terms of the number of guestrooms, decided to mark its presence in an unusual segment. The hotelier, which name is a synonym of luxury, wants to expand to budget segment. These will be primarily small hotels with cheap rates located in big cities.
No hotels have been announced yet, but Hilton, owner of such famous brands as Waldorf Astoria and Hampton Inn, will primarily focus on micro hotels. The main target auditory will be young travelers seeking basic services and affordable price. Hilton describes the new brand as “hostel-like”. It was decided that Hilton will not acquire any existing brands and will focus on developing its own brand instead.
Young tourists travel actively around the world. This is a growing segment that draws attention of many hotel companies because the total spending of the segment is expected to grow to US$336 billion by 2020. The total spending of travelers in 2014 estimated US$230 billion. Around a half of millennial travelers spend at least 1,000 euro per trip.
Hilton Worldwide is the largest hotel company with 747,000 guestrooms globally. That is more than guestrooms in portfolios of Marriott International and InterContinental Hotels Group. In February 2016, Hilton announced its plans to divide itself into three entities that will focus on operating hotels, real estate and time-share business.
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