Hilton Launches Micro-Hotel Brand

By Barbra Murray

Hilton makes a move to court today’s incarnation of the global traveler with the introduction of its Motto by Hilton brand. The new micro-hotel, a nod to the most desirable elements of the contemporary hostel concept, joins the company’s portfolio of affordable lifestyle properties.

“We’ve deconstructed the traditional hospitality experience to create something truly fresh and exciting,” Tripp McLaughlin, global head of Motto by Hilton, said in a prepared statement.

Hilton conducted research on the lodging industry and found a gap in options for travelers seeking, in a nutshell, flexible and modestly priced accommodations at authentic properties in coveted urban locations. Motto properties will turn the “one size fits all” model of the traditional hotel on its head with such offerings as multi-purpose guestrooms incorporating space-saving features; easily-coordinated connecting rooms to create a house-like environment; and adaptable spaces and split payments for multiple occupants. Other features designed to create a more familial or group setting include lofted beds, segmented shower and toilet stalls and multi-functional furniture.

“We think we can do it better than anything out there and we can do it exactly the way the customer wants it and create more organic growth without having to buy growth,” Christopher Nassetta, president & CEO of Hilton, said during the company’s third quarter 2018 earnings conference call on October 24.

Hilton is laying the groundwork to open its first Motto properties by approaching its pool of existing owners, many of whom were involved in the process of creating the new flag. Current deals in the works will yield new Motto hotels in New York City, London, Washington, D.C., and Tokyo. Hilton expects to ultimately grow the Motto portfolio to several hundred locations. 

Brand-launch bonanza

Motto increases Hilton’s brand portfolio to 15 and marks the company’s fifth brand launch in the last four years. In 2014, Hilton introduced Curio – A Collection by Hilton and Canopy by Hilton. Tru by Hilton and Tapestry Collection by Hilton followed in 2016 and 2017, respectively.

“We’re always talking to customers and doing focus groups as we design these brands and figure out how to make them tick the right way so that they’ll appeal to customers,” Nassetta said during the earnings call. “But we’re also working very closely with owners to make sure that we’re engineering the cost to build and the cost to operate in a way that they’ll deliver returns that work for owners. Otherwise, we’ll have a great thing for our customer, but we’ll have no hotels for the customer to stay in.”

Images courtesy of Hilton