Hilton’s Bold Expansion in the Caribbean and Latin America: A Strategy for Growth
Hilton is poised to significantly enhance its footprint in the Caribbean and Latin America (CALA) following a record-breaking 2023, characterized by unprecedented room growth and a dynamic development pipeline. This ambitious expansion underscores the hospitality leader’s commitment to broadening its influence in key markets across the region, reinforcing its position as a global powerhouse in the industry.
Record-Breaking Growth in 2023
In a remarkable display of growth, Hilton introduced 19 new hotels, adding over 4,000 rooms to its CALA portfolio in 2023, marking the company’s most substantial single-year room expansion to date. This surge reflects the strategic placement of Hilton-owned brands in new markets and the celebration of significant milestones, illustrating the brand’s adeptness in identifying and capitalizing on emerging opportunities.
Hilton’s CALA presence now encompasses more than 220 hotels and 40,000 rooms across 29 countries and territories, driven by a robust development pipeline of 110 properties. The momentum is further evidenced by the 35 new hotel agreements signed in 2023, showcasing the brand’s appeal and strategic vision.
Pablo Maturana, Hilton’s Vice President of Development for the Caribbean and Latin America, attributed this success to a focused strategy of aligning hotel offerings with market demands and partnering with exceptional owners. This approach has not only tripled Hilton’s regional presence over the last decade but also diversified its portfolio to cater to the nuanced needs of both leisure and business travelers.
Strategic Expansion and Key Markets
Hilton’s expansion strategy has been significantly influenced by growth in top-performing markets such as Mexico, Argentina, and the Dominican Republic. Plans are underway to nearly double Hilton’s presence in Argentina and triple it in the Dominican Republic, with Mexico leading the growth with approximately 120 hotels either open or in the development pipeline.
Drivers of Expansion
The expansion strategy in 2023 was notably propelled by conversions and new-build hotels in strategic locations. Properties like Hilton Mendoza and Hilton San Salvador played pivotal roles, alongside new developments such as Embassy Suites by Hilton Aruba Resort and Hilton Monterrey in Mexico. The all-inclusive segment has also emerged as a vital expansion catalyst, with significant openings and signings including Hilton Cancun Mar Caribe All-Inclusive Resort and the upcoming Zemi Miches All-Inclusive Resort in the Dominican Republic.
Brand Milestones and Future Openings
Hilton’s diverse brand portfolio continues to evolve, meeting the changing preferences of global travelers. The Hilton Garden Inn brand celebrated its 1,000th hotel opening, while the Tru by Hilton brand made significant inroads in Mexico and across CALA. Lifestyle brands like Curio Collection by Hilton and Tapestry Collection by Hilton have expanded their regional presence, with Hilton Hotels & Resorts solidifying its footprint with key openings.
Looking ahead to 2024, Hilton plans to inaugurate over 15 hotels across CALA, including significant entries like DoubleTree by Hilton Buenos Aires, Motto by Hilton Cusco, and Tropicana Los Cabos, Tapestry Collection by Hilton. These openings highlight Hilton’s strategic approach to diversification and its commitment to offering unparalleled hospitality experiences across the globe.
Hilton’s aggressive expansion in the Caribbean and Latin America not only underscores its resilience and strategic foresight but also positions the brand as a leader in responding to the evolving dynamics of the global hospitality industry. By continuing to introduce innovative hotel concepts and entering new markets, Hilton is set to redefine hospitality standards in the region, offering guests unmatched experiences while fostering sustainable growth and development across its portfolio.