(BERLIN, GERMANY)--The Hilton Family of Hotels' announcement today of its planned unveiling of a new "lifestyle" brand at the 2009 International Hotel Investment Forum March 10 in Berlin is intriguing industry observers.
Ross Klein
The event, is scheduled for a still-to-be-announced "Berlin landmark," according to Ross Klein, global president of Hilton's Luxury & Lifestyle brands.
"Project Global 21 is a junction where business meets pleasure, forever redefining how guests stay and play," says Klein.
He explains, "The brand will primarily target local influencers, tech-savvy individuals with a global vision and a high disposable income or those just looking for a sensuous retreat.
"It will offer guests modern convenience, unparalleled personalization, a smart design and will be committed to innovation."
Jon Leibowitz
Jon Leibowitz, executive vice president of Questex Media Group, one of the Forum's organizers, says the planned announcement "will hold great global appeal for our attendees."
Jeff Weinstein, editor of Hotels magazine, says "the Internet has spawned a lot of gossip, innuendo and rumor about the hotel business (lately).
"Here is what I do know about the (new Hilton) brand:
"With a project name known as Global 21, it is considered a luxury lifestyle brand and should feel more accessible and homey than its competition such as W and Edition.
Jeff Weinstein
"It should work for soccer moms as well as businessmen and will probably be more in keeping with Hyatt's Hyatt Place brand--but perhaps a bit more fun and clever, not intimidating. Edgy is not the way Hilton is choosing to go.
"Global 21 will also be a conversion opportunity for owners and that is where Hilton thinks it will have an important point of difference over much of its competition."
Weinstein adds, "Expect Hilton to launch this brand in Berlin with a global pipeline in place, much like Marriott did when it announced Edition last January."
Andrew Calvo
Andrew Calvo, who calls himself a commercial real estate advisor based in Tinton Falls, NJ, calls Project Global 21 "without a doubt, the most exciting thing to come from Hilton."
Writing in his blog, Calvo says Project Global 21, "a boutique brand... has been in the works since 2007-- and I'm sure it has been much longer than that.
"Out of the major international brands, Hilton is the last entrant into the boutique hotel field and they realize they have a lot of catching up to do.
"After they were purchased by Blackstone, the whole Hilton empire was questioned, but I think now it is clear as to the direction where the Hilton brands are going and that Blackstone will not hold them back."
Calvo says, "It will be interesting to see what the Project Global 21 announcement in March (really) is... I'll be keeping my eyes open and ears close to the ground, because what I've been hearing about the brand sounds great.. A brand that specializes in conversions, yet manages to still keep its identity."
He says the new Hilton brand could be "a brand for 'the soccer mom' who wants to be in a modern and trendy hotel, but feels overpowered by the W, or Andaz concept which can be a little overwhelming for a family of 4 from suburban America.
"I've also heard that the brand will launch with "products"... which makes me wonder what they are going to be selling...
"The whole idea of calling it a "lifestyle" brand rather than a boutique brand--- it's either marketing speak or really is a different concept. We'll have to (wait and) find out."
On Hilton's other new strategies for its various brands, Calvo notes, "There has been a lot of talk about the repositioning of the Conrad brand and the breaking out of the Waldorf Astoria brand, and it looks like 2009 will be the year it happens.
"It looks like Conrad will come out to be the global luxury brand of Hilton--focusing on the luxury business traveler, vs families or vacationers.
"It is interesting that Hilton is putting its luxury brands into their own 'group,' very similar to how Starwood put their luxury brands into the "Luxury Brand Group."
"Starwood even went so far as to put the headquarters for that division in New York City, rather than Starwood's headquarters complex in White Plains, NY.
"I also found it interesting how much Hilton is differentiating the Waldorf Astoria in New York City with the rest of the Waldorf Astoria collection.
Barry Sternlicht
"It is obvious that Hilton took the idea that Starwood and Barry Sternlicht had when he took the St Regis in New York and built an entire hotel brand around it--St Regis Resorts."
However, Calvo notes, "Hilton differs from Starwood by continuing to set the original Waldorf Astoria apart from the other hotels in the Waldorf Astoria Collection, which continues to respect and elevate the original brands namesake from the rest.
St. Regis Hotel
"I think most would agree that the original St Regis in NYC has lost a bit of its luster when it was joined, yet not really differentiated from in a marketing standpoint from the other St Regis's around the world."
Jonathan Worsley
The International Hotel Investment Forum is considered Europe's largest gathering of hotel industry leaders, drawing a record crowd of nearly 1,800 in March 2008, according to Jonathan Worsley.
Worsley is chairman of Bench Events, one of the organizers and founders of the International Hotel Investment Forum held each year in Berlin.
He is also a shareholder and board director of STR Global, the new entity for global benchmarking outside North America following the merger of The Bench, Deloitte's Hotel Benchmark and Smith Travel Research, a regular Real Estate Channel contributor.
