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Hilton Worldwide Holdings is acquiring a controlling interest in hospitality firm Sydell Group in a deal to expand the NoMad Hotels brand and add to Hilton’s luxury offerings.
The transaction sets the stage for a wider expansion into key global cities, according to Chris Silcock, Hilton’s president for global brands and commercial services. All NoMad properties will be independently owned, while the brand, known for its flagship London location, will be integrated into Hilton’s platforms, according to a statement Wednesday that didn’t include financial details.
“NoMad London does a great job of blending luxury and lifestyle into a unique experience that appeals to affluent travelers,” Silcock said in an interview. “We think we can take this concept and can grow it to something in the region of 100 properties.”
Last year, Bloomberg News reported that Sydell Group was exploring a sale of the NoMad brand, naming Hilton as a potential buyer.
Sydell Chief Executive Andrew Zobler opened the first NoMad hotel in Manhattan just north of Madison Square Park in 2012. That original hotel in New York shuttered during the pandemic. Zobler’s firm has developed other boutique brands including Freehand and the Ned, that aren’t part of the Hilton deal.
Hilton CEO Christopher Nassetta has long telegraphed his desire to add a lifestyle brand to complement more traditional luxury offerings such as the Waldorf Astoria and Conrad. The NoMad transaction follows recent partnerships with outdoor hospitality brand AutoCamp and Small Luxury Hotels of the World, a network of more than 500 boutique properties.
Hilton has often opted to develop new brands internally, eschewing the acquisitions that have helped define rivals Marriott International and Hyatt Hotels. But it’s recently struck more deals as lodging firms come under pressure from higher borrowing costs. Last month, Hilton agreed to acquire campus-focused Graduate Hotels.
“There is, for a lot of reasons, interest rates and otherwise, more stress in the system than normal,” Nassetta said on a February call with investors. “The stress in the environment maybe provides a little bit more opportunity than we’ve seen in quite a long time.”
The NoMad Las Vegas is excluded from the deal and will rebrand in the coming months, Hilton said.
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Patrick Clark, Bloomberg , 2024-04-03 19:25:56
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