Q&A: Hilton on new lifestyle brand Canopy

Earlier this month, Hilton Worldwide finally entered the lifestyle hotel market with the unveiling of its latest brand: Canopy by Hilton.

Aimed at key urban neighbourhoods and vibrant secondary markets around the world, the first properties under the new brand are expected to open in 2015. So far, 11 hotels have been announced, with only one – in London – located outside the US.

In a Q&A with HotelierMiddleEast.com, Hilton Worldwide global head, luxury & lifestyle brands, John T.A. Vanderslice expanded on the company’s plans for the brand, where it fits into the operator’s portfolio, and how the Middle East could play a key role in its growth.

What rating do you expect these hotels to fall into and what is the target audience for the brand?

Canopy by Hilton is an accessible lifestyle brand which seeks to cater to a broader base of demand at the upper end of upper upscale, among guests seeking simple, guest-directed service, thoughtful local choices, and comfortable spaces.

Are there any plans to bring this brand to the Middle East? If so, are and discussions already underway?

The Middle East boasts a fast growing and dynamic hospitality market and presents unrivalled growth opportunities for all 12 Hilton Worldwide global brands. We see a number of strong prospects across the region to expand the Canopy by Hilton brand; particularly in Dubai, Abu Dhabi, Muscat, Beirut and Bahrain, where there is a wealth of local flavour and culture suited to the brand’s energised offering.

Canopy by Hilton is something our owners have told us they want from a Hilton brand. It’s designed in such a way that it will be easy to build or convert, and we believe it’s going to generate a huge return on investment for our owners.

Our new brand is certainly well placed to cater to the region’s predominantly young population, who are seeking an accessible lifestyle option and an energizing and comfortable experience, with more choice and control than ever before. Guests will be able to use their mobile devices to check-in and choose their room from a floor plan or a map. In 2015, guests will also be able to go straight-to-room, using their mobile device as a room key.

Continue to the next page tp find out more about Hilton Worldwide's plans for Canopy by Hilton...

How do you see the development of the lifestyle category in the Middle East at the moment?

As the region’s hospitality industry continues to develop with a growing number of diverse and exciting hospitality offerings so do customer expectations. We place great importance on ensuring our brand and service offerings match this changing landscape of consumer needs and the launch of Canopy by Hilton answers the needs of the increasingly influential lifestyle segment of the market, which is fast growing in the Middle East.

Hilton Worldwide already has a wide portfolio of brands, catering to many different audiences. Why did it feel the need to introduce this?

Canopy by Hilton represents a new hotel concept with high growth potential, a clearly defined guest offering, and a sustainable business model. As market dynamics change, we are constantly evolving our offering to the meet the changing expectations of travellers today. The lifestyle space has changed tremendously over the last few years and we’ve thoroughly researched and refined Canopy by Hilton every step of the way. We’ve taken the time to focus on building this brand and getting it right. Hilton Worldwide identified a viable target audience based on preferences and needs, not demographics alone. The brand is all about the mindset of today’s traveller and creating a positive stay

We’ve listened to our guests and owners and have created something we are confident meets their needs, and appeals to a wide variety of audiences, including women and millennial travellers. With Canopy, we are giving them more choice than ever before, and the market is definitely large enough for all of our brands.

What kind of room rates can we expect – where will it be pitched in comparison to other Hilton Worldwide brands?

Canopy by Hilton is an accessible lifestyle brand which seeks to cater to a broader base of demand at the upper end of upper upscale. The phrase “accessible lifestyle” also refers to a price point of view.

We believe that by being focused on the upper end of upper upscale price point we will be able to serve more customers and thus build a brand that is much bigger than what we've seen others do.