Not a takeover, but a franchise agreement. While Marriott and IHG strengthened their lifestyle portfolios by acquiring the CitizenM and Ruby Hotels brands respectively, Hilton is following a different strategy. By joining forces with a brand renowned for its contemporary hospitality, YOTEL, Hilton is creating a collection, Select by Hilton, which hotel brands will be able to integrate without losing their identity or control over the management of their establishments. The whole deal will be done on a 'light' basis, without spending nearly 350 million dollars like Marriott or more than 100 million for IHG.
While Hilton expanded its range of luxury boutique hotels in 2024 by signing a strategic partnership with Small Luxury Hotels of the World, the American group is now consolidating its position in the lifestyle segment. " CThis agreement strengthens our network effect by connecting a popular independent brand like YOTEL to the powerful Hilton Honors network and our commercial distribution system, while preserving the brand's uniqueness. "said Christian Charnaux, Hilton's Executive Vice President and Chief Development Officer. " Hilton brings unrivalled global distribution and loyalty reach to our brand and business. "commented Phil Andreopoulos, CEO of YOTEL.
In the coming months, the 250 million members of the Hilton Honors loyalty programme will be able to book one of the 23 YOTELs in major destinations such as New York, Tokyo and Singapore, as well as at Paris CDG airport. Inspired by Japanese-style capsule hotels, the brand made its debut at London Gatwick airport in 2007, offering a restful solution for travellers in transit, with cabins combining intelligent design, avant-garde technology and beds that can be transformed into sofas to optimise space. All features that are equally suited to urban markets where land is limited.
So, while the brand has continued its expansion within airports with its YOTELAIR variant present at London Gatwick and Paris CDG, as well as Amsterdam Schiphol, Singapore Changi, and Istanbul IGA Airport, Yotel has also established itself in the heart of major cities, near Times Square in New York, in the Ginza district of Tokyo, but also, more recently, near Geneva Airport. In parallel, a long-stay variant, YOTELPAD, has been created, present in Miami and in the Stratford district of London.
Now associated with Hilton, YOTEL will continue to manage and license its brand independently, with the ambition of more than tripling its portfolio in the coming years. Several properties have already been announced, with the YOTEL Bangkok Sukhumvit, offering 250 rooms in a complex focused on tech entrepreneurship, and the YOTEL Kuala Lumpur, close to the Petrona Towers and the lively Bukit Bintang district, with 300 rooms and coworking spaces, expected to open this year. A YOTELPAD is due to open next year. in the heart of Athens. In 2028, in addition to Belfast, Lisbon will also see the brand established within the walls of the World Trade Center Lisboa.
