Hilton has recently acquired a majority controlling interest in Sydell Group, the owner of NoMad Hotels. This is Hilton’s second acquisition in a month, indicating the company’s hunger for growth. The terms of the deal were not disclosed and regulatory approval is still pending. Hilton plans to build up to 100 NoMad hotels over time, with about 10 already in advanced stages of discussion. Sydell will design, brand, and manage the NoMad brand while Hilton will lead development, with NoMad joining Hilton’s rewards program. The luxury lifestyle category of hotels, such as NoMad, appeals to guests looking for unique designs, amenities, and services, as well as owners seeking a cost-effective concept to replicate and run.
Despite facing financial troubles during the pandemic, Sydell Group has other hotel concepts in addition to NoMad, including The Line, Freehand, and The Ned. NoMad is a boutique hotel brand that was created by Ron Burkle and Andrew Zobler in 2012 and currently has luxury properties in Las Vegas and London. This acquisition aligns with Hilton’s need for an international offering in the luxury lifestyle segment. Hilton had previously announced that it was working on developing a luxury lifestyle brand, but decided to speed up the process by acquiring an existing brand. This move will allow Hilton to leverage the power of its commercial engine to drive growth in this segment.
In addition to acquiring Sydell Group, Hilton has also been working on expanding its luxury lifestyle offerings. The company sees a great potential in the luxury lifestyle market and is strategically positioning itself to capitalize on this growth. By acquiring a brand that is ready for expansion, Hilton is able to accelerate its development process and quickly establish a presence in this segment. This move reflects Hilton’s commitment to innovation and strategic growth in the competitive hospitality industry. The company is leveraging its resources and expertise to create a strong portfolio of brands that appeal to a diverse range of travelers.
The performance of hotels and short-term rental sector stocks within the ST200 index, which includes publicly traded companies across global markets, has been closely monitored. The index covers international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. Analyzing the financial performance of the accommodations sector is crucial for understanding the trends and dynamics of the hospitality industry. Investors and industry professionals can use this data to inform their decision-making and strategic planning.
Overall, Hilton’s acquisition of Sydell Group’s NoMad Hotels represents a strategic move to expand its portfolio and establish a presence in the luxury lifestyle segment. By leveraging the existing brand concept and combining it with the commercial power of Hilton, the company aims to drive growth and innovation in this market. The luxury lifestyle category resonates with guests seeking unique and personalized experiences, as well as owners looking for a concept that is scalable and cost-effective. Hilton’s acquisition strategy reflects its commitment to staying competitive and relevant in the ever-evolving hospitality industry. This move is likely to position the company for long-term success and sustainable growth in the luxury lifestyle market.
