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NEW YORK—For all that the Waldorf-Astoria and Conrad Hotels brands represent, one thing the popular luxury brands are without is saturation. Intentional or not, that’s about to change. John Vanderslice, named global head of luxury and lifestyle brands for Hilton Worldwide in late 2009, believes Hilton may be the “fastest growing luxury hotel company in the world,” citing a healthy pipeline of 15 Conrad and 14 Waldorf-Astoria locations globally.
Luxury is critical to Hilton, Vanderslice said. Only 6% of Hilton’s total rooms are in the luxury brands, but they account for 15% of revenue. His job is to not only grow the brands, but to distinguish the two brands from each other–and from their long list of competitors.
While both brands will grow globally, Conrad, with its strong Asian base, will grow more internationally while Waldorf-Astoria will be more Americas-focused. Many hotels in both brands will be newly built, though both are open to conversions.
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Bathroom at the Conrad Tokyo. |
Conrad recently confirmed and provided details for several projects, including: Seoul (2012), Dalian, China (2012), Beijing (2012), Fiji (Q4 2012), Bangalore, India (2013), Guangzhou, China (2013), Bali (2013), Tianjin, China (2013) and Mumbai (2014). Recent Waldorf-Astoria openings include: Jerusalem (2011), Beijing (2012), Montreal (2013) and Beverly Hills, California (2013).
Branding
Vanderslice, who previously worked for Club Med and Miraval Spa, already made one move with little fanfare: he began the process of merging the Waldorf-Astoria brand and the Waldorf-Astoria Collection. Originally these were designed as separate entities, with Collection members using the Waldorf-Astoria name and tagline as part of a marketing alliance that included hotels like the Arizona Biltmore and La Quinta Resort & Club in California.
“We are in the midst of this transition and at the end they will have unified brand standards,” Vanderslice said.
Hilton will manage most of its luxury hotels, Vanderslice said, although in rare instances that are dependent on the owner, a franchise-only situation might be viable.
The distinction between the two brands, Vanderslice said, is that Conrad will be aiming at “smart luxury,” which involves an emphasis on style and connections, including superior meeting space. The tagline for the brand is “The Luxury of Being Yourself.”
Meanwhile, Waldorf-Astoria will be defined by “inspirational environments that let you know where you are, destination restaurants and true Waldorf-Astoria service,” he said.
“Waldorf will be a Rolex watch while Conrad will be a Tag Heuer,” Vanderslice said. “Waldorf will be a Bentley while Conrad will be an Audi 8L.”
While the original Waldorf-Astoria in New York City will not be replicated, other locations will be consistent in service and signature items, such as a lobby clock. But, Vanderslice said, “If the hotel is in Florida, it will be more resort-like.”
‘Luxury Manifesto’
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John Vanderslice, the global head of luxury and lifestyle brands, Hilton |
As for distinguishing his brands from competitors, Vanderslice said: “Luxury is in the details. When we talk about Waldorf-Astoria service we are talking about 1,000 details like a lobby ambassador whose only job is to ensure that everyone finds what they’re looking for. And a guarantee in restaurants that entrees will be served within 12 minutes after the appetizer.” Exemplary of where the Waldorf brand is going, is Shanghai on the Bund, which is partially open, Vanderslice said. There are 20 Waldorf Suites on the site of what had been the iconic Shanghai Club. A 249-room tower will open soon, connected to the suites by a garden.
A high-profile Conrad will open in Manhattan; there an Embassy Suites will close and re-emerge as a 463-room Conrad in late 2011. The property will house three restaurants from renowned New York restaurateur Danny Meyer, including a Shake Shack, a popular burger and milkshake chain; Blue Smoke, a barbecue restaurant; and another to be announced.
The New York location “might pave the way for more aggressive expansion in the Americas,” Vanderslice said.
As part of building the luxury brands, Vanderslice is positioning the brands to be “at the forefront of thought leadership” in luxury. To accomplish that, he is putting together a “Luxury Manifesto,” a series of 12 web-based interviews with luxury leaders like the CEO of Saks Fifth Avenue and the publisher of New Yorker magazine. Eventually, the series will be available on a proprietary micro-site.
Meanwhile, Hilton remains entrenched in a legal battle over a proposed lifestyle brand, Denizen, which it announced in early 2009 and then was forced to abandon after accusations by Starwood Hotels & Resorts of corporate espionage. Although Vanderslice has “lifestyle” in his job title and said a lifestyle product will eventually be part of Hilton’s portfolio, his current focus, he said, remains entirely on the luxury brands.