Hilton Hotels to expand in Asia, focus on India

New York, Jun 25, 2008 (Asia Pulse Data Source via COMTEX) -- HLT | Quote | Chart | News | PowerRating -- Hilton Hotels Corp plans to add 300 hotels to the existing 47 in Asia over the next decade, as the firm seeks to catch up with its rivals and cash in on the boom in business and leisure travel in India and China, a media report today said.

Hilton, with nine brands ranging from the opulent Waldorf -Astoria Collection to the thriftier Hampton Inn, expects to manage the majority of these new hotels and leave the investment and ownership of them to others, The Wall Street Journal said in an article published in its online edition.

"The Asia region is one of our absolute top priorities for our business and development... The strategy is to put about 300 new hotels in the region. We'd like to do better than that, but that's our goal," the report said quoting Hilton's Chief Executive and President Chris Nassetta.

He also estimated the value of these planned hotels to be in "the tens of billions of dollars." Hilton Hotels is a leading global hospitality company with more than 3,000 hotels in 74 countries and territories.

The newspaper quoting Nassetta said Hilton is focusing initially on India, where it has a joint venture with local property firm DLF Ltd. That aims to open 75 hotels within the next five years.

"Starting in India's big cities, where population density limits the availability of land suitable for international -standard hotels, Hilton plans to introduce its Hilton Hotels, Homewood Suites by Hilton and Hilton Garden Inn brands," it noted.

Quoting Hilton Hotels' President in the Asia-Pacific region Koos Klein, the report said DLF's property holdings should give Hilton an edge over some of its competitors. "In India, a lot of people have plans, but not a lot of land. DLF does," he added. Currently, Hilton operates no hotels in India.

Both India and China are "in their absolute infancy" as hotel markets, so Hilton should be able to catch up quickly with other chains, the report said quoting Nassetta.

Nassetta has viewed international expansion as a priority since he joined US-based Hilton last year. Hilton reunited with its overseas arm, Hilton International, in 2006, a step that primed the enlarged company for a burst of international growth, the newspaper added.

"In the next four years, Hilton wants to add 18 hotels to the five it already operates in China. In addition to its Hilton brand, the company plans to manage Doubletree and Conrad Hotels & Resorts properties there," The Wall Street Journal said.

Nassetta told the newspaper that he also sees "massive potential" in the budget-hotel category -- possibly for Hilton's Hampton Inn brand -- thanks to the country's growing affluence and the eagerness many Chinese are showing to travel for work and pleasure.

Starwood Hotels & Resorts Worldwide Inc, Marriott International Inc and French hotel company Accor SA are among the firm's rivals.

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