Dive Brief:
- Hilton is rapidly expanding its premium economy conversion brand, Spark by Hilton, with the hotel’s first international location opening this week in London, according to a company announcement.
- Since launching the brand in January 2023, the company has opened 30 locations in the U.S., and more than 175 Spark by Hilton hotels are currently under development, Hilton said.
- Hilton is one of several major hotel players expanding rapidly in the conversion space, with the property type taking up a significant portion of its overall development pipeline.
Dive Insight:
Conversions accounted for 30% of Hilton’s openings in the first quarter of 2024, largely driven by Spark and DoubleTree hotels, CEO Chris Nassetta said on an April earnings call.
The first Spark by Hilton hotel opened in Mystic, Connecticut, in September, less than a year after the brand launched in January, which Hilton said is the fastest announcement-to-market brand opening in the company’s history.
Though Hilton is currently seeing pipeline growth in all of its chain scales, Spark marks the company’s entry into the premium economy segment. Brand hallmarks focus on practical amenities like adjustable workstations, simple breakfasts and multi-purpose seating.
The London location, the 125-room Spark by Hilton London Romford, is no exception, featuring “simple streamlined furniture” and a 24-hour retail market, according to Hilton.
Patrick Fitzgibbon, Hilton’s senior vice president of development for its Europe, Middle East and Africa region, called the opening “a significant milestone for the brand.”
Hilton designed Spark with guests and owners in mind, according to the announcement, which said its “cost-effective” conversion model offers “a compelling proposition” for owners.
Factors such as heightened construction costs and a tight lending environment have grown the hotel conversion pipeline to “historic levels,” Lodging Econometrics SVP Bruce Ford told Hotel Dive in September.
Other hotel companies are taking note, too. IHG Hotels & Resorts is similarly pushing its newly launched midscale conversion brand Garner, with the brand announcing its first international signings in February.
