The Hilton Hotels Corporation recently made an interesting deal with London-based Small Luxury Hotels of the World (SLH). Essentially, Hilton Honors members can now book stays at these unique, independent luxury hotels around the world through Hilton. Hilton Honors members will get points for each stay and can also use points to pay for their stays.
SLH has 560 luxury boutique hotels spanning 90 countries. Hilton is not acquiring the SLH collection. Instead, the deal is a strategic partnership that lets Hilton expand its existing portfolio of luxury hotel experiences with the addition of more than 400 of these boutique properties. These properties are now available on all Hilton direct booking channels, including Hilton.com and the Hilton Honors app.
When the deal was first launched in February, Shaun Leleu, chairman, Small Luxury Hotels of the World, described it as a “win-win” for both brands. “Hilton customers will gain access to our unrivalled collection of exceptional boutique hotels, while our properties enjoy amplified reach to a loyal and discerning audience. It's a game changer for independently owned hotels on a global scale.”
Hilton already has a luxury brand portfolio, including Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, LXR Hotels & Resorts and Signia by Hilton. According to a spokeswoman, the deal with SLH will give travelers new ways of staying with Hilton in intimate spaces and unique places. These range from rustic huts and woodland treehouses to rainforest retreats and coastal villas and palaces.
Through the partnership, the 195 million members of Hilton Honors can earn and redeem points for SLH stays and enjoy exclusive benefits, including free Wi-Fi and a guaranteed member discount. Hilton Honors Gold and Diamond members get space-available room upgrades and continental breakfast for up to two guests.
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We spoke with Brad Anderson, Vice President, Hilton Honors, about the SLH-Hilton partnership. Since the program was announced six months ago, he noted that Hilton had added more than 400 SLH hotels to its reservation and points platform. As for the rest, “We will bring most of them on our system.”
Anderson emphasized that while SLH hotels are not ‘Hiltons’, Honors members can earn points and get benefits just as they do at Hilton properties.
“Small Luxury Hotel is not one of our 24 brands,” Anderson noted. But the partnership allows us to complement our brands like LXR, Waldorf Astoria, Conrad, and Signia by Hilton.” Anderson describes Signia, which currently includes hotels in Atlanta, San Jose and Orlando, as “designed for larger group experiences and large events,” as opposed to the SLH hotels which typically have less than 100 keys.
In addition to offering a boutique experience, the SLH hotels are often located in destinations where Hilton may not have a product. According to Anderson, SLH hotels are 60% in Europe, Africa and the Middle East, 20% in Asia, and 20% in North America.
Unique SLH properties include places like the Nimb Hotel, located in the famous Tivoli Gardens of Copenhagen, Denmark. The Moorish-styled palace with a striking Venetian marble façade has just 38 rooms and suites, but a state-of-the-art wellness center and five dining options in the heart of the city. It was also the only hotel that came up on my Hilton site search of Copenhagen.
Other unique offerings include the Nobu Hotel Marbella in southern Spain, a laid-back beach retreat with high-end fine dining at the exclusive La Plaza. And in the cowboy U.S. state of Wyoming, the 40-room Rusty Parrot Lodge & Spa offers a tranquil getaway near Grand Teton and Yellowstone National Parks.
Anderson says, “It’s a collaboration and a distribution approach, brining 195 million Honors members to the SLH hotels. They are paying to be on the network. When Honors points are redeemed, we compensate them. It’s great for Hilton Honors, and we are driving demand to SLH owners.”
Asked if there was any pushback from Hilton brand franchisees to bringing on potential competitors, Anderson noted, “Our owners see the power in relationships.”
Anderson added, “Luxury is really important, and aspirational stays are also very important. We need partners with expertise in a blend of both. We are developing our luxury brands, but SLH offers a different experience, more of a villa experience, which offers a nice synergy.”
Do these small hotels have to adopt a Hilton "flag" or conform to any specific Hilton policies or standards? Anderson says that SLH has a strong vetting program for its member hotels. He adds, “There are some Hilton Honors member benefits these hotels need to provide—an exclusive discount, hydration [water], space available room upgrade, complimentary breakfast, etc.”
Travelers can redeem points to book a Small Hotel or mix points and miles to do so. As Anderson puts it, ‘You don’t have to redeem all of your Hilton Honors points to enjoy one of these aspirational stays. Younger customers want instant gratification.”
Points awarded will mostly be based on spending. Anderson says, “We’ve activated our members, we’re using social media, and SLH is sharing the news on their site.”
So, is partnering with SLH and its one-of-a-kind hotels a recognition that sometimes brand hotels can seem like a “cookie cutter” experience?
“Every hotel has its own story, like Hampton Inn and its waffle experience,” Anderson said. “But today there is just way more demand for unique experiences, like at these SLH small hotels. That’s why Hilton Honors members are redeeming points to stay there.”
