NEW YORK -- The
Waldorf-Astoria is becoming a global brand.
Hilton Hotels
Corp., the operator of the Manhattan landmark, is launching a
two-pronged effort to extend the brand by creating a
Waldorf-Astoria collection of properties that will maintain their
own names, plus a chain of new-builds that will carry the
Waldorf-Astoria name.
The first four
members of the Waldorf-Astoria Collection are the original New York
hotel and three resorts: the Grand Wailea Resort Hotel & Spa on
Maui, the Arizona Biltmore Resort & Spa in Phoenix and La
Quinta Resort & Club in La Quinta, Calif.
Hilton will take
over management of the three resorts, but all employees will remain
in place.
Matthew Hart,
Hiltons president, said the collection would grow much faster than
the chain of new-builds because developing five-star properties in
major gateways is difficult and time-consuming.
Both initiatives
have the potential to be global in scope. Hart said Hiltons
agreement to acquire Hilton International, which operates and
manages Hilton hotels outside of the U.S., expanded its horizons
geographically.
When the deal is
completed in late February or early March, we will have
opportunities all over the world, Hart said.
While members of
the Waldorf-Astoria Collection may operate under license from
Hilton, all newly built Waldorf-Astorias would be managed by
Hilton. Hart said that the Conrad brand, which has been Hiltons
international luxury brand, would continue to grow and that there
is room for both luxury brands.
The Waldorf Towers,
the separate wing of the Waldorf-Astoria that is even more upscale
than the main hotel, will remain a Conrad.
Existing Conrad and
Hilton hotels may acquire the tag, A member of the Waldorf-Astoria
Collection.
Hilton criteria for
membership in the Waldorf-Astoria Collection will include
architectural significance, unique decor and original artwork,
historic or landmark status, and a reputation for product and
service excellence.
Owners, said Hart,
will get the best of both worlds. They will maintain the value of
their hotel names plus be able to supplement that with all that
Hilton brings to bear.
He said that he
would be bringing 500 business cards to the American Lodging
Investment Summit conference in Los Angeles (Jan. 23 to 25) to
distribute to interested investors in the Waldorf-Astoria
brand.
The advantage of
joining the collection, said Hart, is that members will have access
to Hiltons operational and technological expertise.
In addition, guests
would be able to earn points in Hiltons guest loyalty
program.
Thomas Hutchison
III, CEO of CNL Hotels & Resorts, which owns the Grand Wailea,
Arizona Biltmore and La Quinta Resort, said that the deal was the
culmination of six months of discussions with Hilton.
Hilton will acquire
the management contracts for the three CNL-owned hotels from KSL
Resorts, which intends to move its focus from hotel management to
hotel acquisition and development.
Asked how the brand
extension would help the original Waldorf-Astoria, Hart said,
Therell be a lot of publicity, but we need to be loyal to the brand
promise.
Hart was wary of
talking about time frames for adding to the Waldorf-Astoria
Collection or opening the first new Waldorf-Astoria. He did say
that the Cavalieri Hilton in Rome is an example of a hotel that
would be ideal as a member of the collection.
He was also
unwilling to compare Hiltons efforts with those of competitors like
Starwoods extension of its St. Regis brand or Starwoods Luxury
Collection.
Hart said that the
Waldorf-Astoria Collection and new builds would not be competing
with groups like Leading Hotels of the World. We should be talking
to those people because they have members who might be interested,
he said.
Hart said that
boutique hotels would be eligible for membership in the collection
if they were up to standards. He also said that new-build
Waldorf-Astorias could be multi-use projects or condo-hotels. And,
he said, they might even have elements of the Waldorf
Towers.
Ideally, said Hart,
we would want an owner to come to us and say he was building a
Waldorf-Astoria that looked like the original and had a Peacock
Alley and Bull and Bear [the hotels signature restaurants], but
thats not how the world works.
He said that new
Waldorf-Astorias would have to be fresh and modern while
maintaining the legacy of the style of the original
Waldorf-Astoria.
Hart said there are
about 900 luxury hotels in the world right now, with 200 of them
branded. The rest, he said, would be good candidates for membership
in the Waldorf-Astoria Collection.
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