Hilton has acquired a majority controlling interest in Sydell Group to expand the NoMad Hotels brand

Hilton has announced it has acquired a majority controlling interest in Sydell Group (“Sydell”) to expand the NoMad Hotels brand from its existing London flagship location to high-end markets around the world. The addition of NoMad to Hilton’s brand portfolio marks the global hospitality leader’s entry into the fast-growing luxury lifestyle hotel market with a meticulously designed brand defined by exceptional food and beverage, interior design and service. 

Over the last decade, Sydell, led by founder Andrew Zobler, has created seven dynamic lifestyle brands, with award-winning hotel concepts including NoMad, The Line, Freehand and The Ned. Sydell will be responsible for design, branding and management of the NoMad brand while Hilton will lead all development. The NoMad brand will be fully integrated into Hilton’s commercial platforms, including Hilton Honors. All NoMad properties will remain independently owned.  

Hilton projects that as many as 100 NoMad properties will be developed globally over time, with approximately 10 already in advanced stages of discussion with Sydell.  

Chris Silcock, President, Global Brands and Commercial Services said: "Adding NoMad to our growing brand portfolio will create new offerings for guests seeking unique luxury experiences in some of the world’s most desirable locations."

“Adding NoMad to our growing brand portfolio will create new offerings for guests seeking unique luxury experiences in some of the world’s most desirable locations,” said Chris Silcock, president, global brands and commercial services, Hilton. “By pairing an already proven brand concept that’s ready for expansion with the power of Hilton’s commercial engine, we are accelerating our ability to drive growth in the luxury lifestyle segment.  

“Coupled with our recently announced exclusive partnership with Small Luxury Hotels of the World and our planned acquisition of the Graduate Hotels brand, Hilton is leading the hotel industry with the addition of innovative new luxury and lifestyle offerings that meet changing guest needs and add new opportunities for owners to join our system,” Silcock said.

Each NoMad hotel added to Hilton’s network will provide a uniquely local luxury experience that makes guests feel like residents of some of the world’s most sought-after neighborhoods. NoMad Hotels are both grand and intimate, fun and elegant, and classic and playful, creating a unique blend of luxury and lifestyle experiences throughout the stay with special touches like unique local art collections featured in each guest room. 

Hilton to Accelerate Expansion in Fast-Growing Lifestyle Category with Addition of Graduate Hotels to Global Brand Portfolio

Hilton announced an agreement with Adventurous Journeys Capital Partners (“AJ Capital”) to acquire the fan-favourite Graduate Hotels® brand, adding a significant growth opportunity for the global hospitality leader in the fast-growing lifestyle hotel market.  

Hilton will pay $210 million to acquire all rights to the Graduate brand worldwide, enter into franchise agreements for all existing and signed pipeline Graduate Hotels, and become responsible for the brand’s future development and growth. AJ Capital will remain the owner of the more than 35 operating and pipeline Graduate properties, each of which will be operated under long-term Hilton franchise agreements.  

The transaction, which is expected to close in the second quarter, subject to customary closing conditions including review and approval pursuant to Hart-Scott-Rodino, will be immediately accretive to Hilton. The company expects the fee contribution for the first full year of ownership to be approximately $16 million.

“Adding Graduate Hotels to our portfolio of award-winning brands accelerates our expansion in the lifestyle space by pairing an existing much-loved brand with the power of Hilton’s strong commercial engine to drive growth,” said Chris Nassetta, president and CEO, Hilton. “We have long had a high bar for adding brands to our portfolio, whether organically or through acquisition, and Graduate will be another driver of growth for us, presenting a unique opportunity to serve more guests in more sought-after destinations. With thousands of colleges and universities around the world, we believe the addressable market for the Graduate brand is 400-500 hotels globally.”

Hyatt set to open new Andaz hotel in Miami

Following a property-wide renovation, luxury lifestyle hotel Andaz Miami Beach is slated to open in late 2024, with reimagined spaces, programming and a new culinary collaboration with Jose Andrés Group.

Hyatt Hotels Corporation, announced an update on the anticipated renovation of The Confidante Miami Beach and its complete transformation into the new Andaz Miami Beach, which is slated to open in the fourth quarter of 2024. The new hotel, which is owned by Sunstone Hotel Investors, Inc., will go beyond the familiar to discover and define guests’ personal essence while immersing themselves in the spirit of the eclectic culture around them through a barrier-free redesigned lobby, two reconceptualized pools and outdoor recreation experience, an exhilarating spa, inspiring guestrooms, suites and meeting spaces, and immersive dining experiences with the hotel’s new culinary provider, José Andrés Group. As part of the hotel’s transformation the iconic oceanfront property will temporarily suspend operations starting Monday, March 25, 2024, through the conclusion of the renovation.

"We are thrilled to unveil this new chapter for Hyatt as our hotel becomes the Andaz Miami Beach, blending the essence of Miami Beach with the allure of imaginative travel to stimulate guests’ curiosity and self-expression,” said Amy Johnson, general manager, of Andaz Miami Beach. “This exciting journey brings the luxury lifestyle Andaz brand to Florida along with exciting collaborations like Jose Andres Group. We look forward to welcoming back our guests and local community to a completely new and bold hotel, embodying the distinctly native experience and expressive nature of the Andaz brand, while still capturing the essence of Miami Beach.”

Marcus Hotels & Resorts, Hempel Real Estate and Robinson Park Close Acquisition of Loews Minneapolis Hotel

The 251-room property will be rebranded as The Lofton Hotel under the Tapestry Collection by Hilton flag; Marcus Hotels & Resorts to manage the property.

Marcus Hotels & Resorts, a nationally recognized owner and management company and division of The Marcus Corporation announced this week that it, Hempel Real Estate, and Robinson Park have closed on the acquisition of the Loews Minneapolis Hotel. The property will be managed by Marcus Hotels & Resorts, effective today, and will be rebranded immediately as The Lofton Hotel under the Tapestry Collection by Hilton flag, making it the first Tapestry Collection hotel in Minnesota. The terms of the transaction were not disclosed.

“Since 1993, Marcus Hotels & Resorts has been invested in elevating the travel and leisure experience in Minneapolis, a city we greatly admire and appreciate,” said Michael Evans, president of Marcus Hotels & Resorts. “The Lofton Hotel’s chic design, incredible location, and ample amenities create a welcoming destination for travellers visiting the Twin Cities and experiencing all they have to offer. With The Lofton Hotel now part of the Tapestry Collection by Hilton platform, we look forward to welcoming our new associates to the Marcus Hotels & Resorts family and providing our guests with the high-quality service and experience for which Hilton and we are known. We also look forward to playing an active part in the continued resurgence of the downtown business and social community.”

Hyatt Reports Fourth Quarter and Full Year 2023 Results

Record Total Fee Revenue Led to the Highest Cash Flow from Operations in Company History

Full Year System-Wide RevPAR Increased 17%

Hyatt Hotels Corporation last week reported fourth quarter and full year 2023 financial results. Highlights includes:

Net income was $26 million in the fourth quarter and $220 million for the full year of 2023, and exceeded the full year outlook for 2023. Adjusted net income was $68 million in the fourth quarter and $276 million for the full year of 2023.

Diluted EPS was $0.25 in the fourth quarter and $2.05 for the full year of 2023. Adjusted Diluted EPS was $0.64 in the fourth quarter and $2.56 for the full year of 2023.

Adjusted EBITDA was $241 million in the fourth quarter and $1,029 million for the full year of 2023, and exceeded the full year outlook range for 2023.

Adjusted EBITDA does not include Net Deferrals and Net Financed Contracts of $33 million1 in the fourth quarter or Net Deferrals and Net Financed Contracts of $158 million1 for the full year of 2023.

Comparable system-wide RevPAR increased 9.1% in the fourth quarter and 17.0% for the full year of 2023, compared to the same periods in 2022, and exceeded the full year outlook for 2023.

Comparable owned and leased hotels RevPAR increased 5.9% in the fourth quarter and 15.5% for the full year of 2023, compared to the same periods in 2022. Comparable owned and leased hotels operating margin was 26.2% in the fourth quarter and 25.4% for the full year of 2023.

Comparable Net Package RevPAR increased 11.3% in the fourth quarter and 15.3% for the full year of 2023 compared to the same periods in 2022.

Net Rooms Growth was 5.9% for the full year of 2023, in line with the full year outlook for 2023.

Pipeline of executed management or franchise contracts was approximately 127,000 rooms.

Share Repurchases were approximately 890 thousand Class A shares for $95 million in the fourth quarter and approximately 4.1 million Class A shares for $453 million for the full year of 2023.

Capital Returns to Shareholders were $500 million for the full year of 2023, inclusive of dividends and share repurchases, in line with the full year outlook for 2023.

1 Represents the sum of Net Deferrals and Net Financed Contracts. Refer to Apple Leisure Group Segment Statistics on schedule A-18 for additional details.

Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt, said, "The fourth quarter marks the completion of a transformative year and demonstrates the progress towards our strategic vision and earnings evolution. RevPAR growth exceeded the high end of our guidance range and we had industry leading net rooms growth for the seventh consecutive year. This led to a record level of fees and the highest free cash flow in Hyatt's history. We returned $500 million to our shareholders and achieved an asset-light earnings mix of approximately 76% for the full year, a testament to the successful execution of our strategy."