Hilton’s lifestyle power play

M&A activity has dominated the last few newsletters, and this time Hilton strikes again. Shortly after revealing plans to acquire Graduate Hotels, Hilton has bought a controlling interest in Sydell Group to expand the NoMad Hotels brand to a potential 100 sites. It’s a hugely ambitious figure given that only two NoMad properties are currently in operation – one of which will reflag in the coming months. 
 
Around 10 hotels are already in “advanced stages of discussion” with Sydell, reported Hilton, with the company targeting “high-end markets” globally. NoMad suffered during the pandemic and closed its property in Los Angeles, and with the Las Vegas site not included in the deal, the commercial firepower of Hilton will certainly help the brand reach international markets outside of the UK – where NoMad’s flagship is located in London.
 
Luxury hotels have been the darlings of the industry, recording impressive ADRs and appealing to customers likely unaffected by the cost of living crisis. Judging by Hilton’s recent partnership with Small Luxury Hotels of the World, the company is clearly confident in the sector’s continued performance.