MEDELLÍN, Colombia—Over the last five years, Hilton has doubled its presence in the Caribbean and Latin American region, and shows no sign of slowing down.
“Our focus has never been stronger in the region,” said Ted Middleton, Hilton’s SVP of development for Latin America, at the recent South America Hotel Investment Conference.
Hilton currently has a portfolio of nearly 140 hotels open in the region, and a pipeline of 90. Mexico leads the Hilton footprint in its Caribbean and Latin America region, with 60 hotels open and 30 in the pipeline; followed by Colombia, which has nearly 20 hotels open and 10 in the pipeline, according to Middleton.
But in a region encompassing many countries, land masses and governments, challenges abound, said Hilton’s Juan Corvinos, VP of development for Latin America and the Caribbean.
“Our biggest challenge is maintaining momentum, and our biggest opportunity is maintaining momentum,” he said. “We need time for governments to settle down, for investor sentiment to return. It’s just such a variant region. Maintaining momentum and growth can come with pains, but we just need to keep our hands on the wheel.”
Corvinos said “consistent” is the word that best describes Hilton’s growth in the Caribbean and Latin America—a feat he said is admirable, considering the ups and downs related to elections and other factors in a region where investor sentiment and overall global perception can change on a dime.
That consistency means the company has grown with “the same levels of development and expansion,” Corvinos said, and with some refocus to countries that represent a lion’s share of the current opportunity.
“This year we’ve seen momentum for things we’ve planted in Brazil, the Caribbean and Mexico,” he said.
Some of the company’s highlights in the region from the last year include:
- the September signing of a strategic alliance with Playa Hotels & Resorts to open 10 all-inclusive resorts together by 2025 in the Caribbean and Latin America;
- announcing the first Curio Collection by Hilton property in Colombia, the Atolón Hotel Cartagena Tierra Bomba, scheduled to open in 2019; plus two additional Hilton Garden Inn-branded hotels in Colombia;
- the announcement of two forthcoming resorts in Cancún, Mexico—the Waldorf Astoria Cancún and the Hilton Cancún, both slated for 2021 openings;
- signing nine hotels in five Central America countries; and
- the December opening of the Conrad Cartagena.
Forward motion
With momentum in place, Corvinos said he’s always thinking about acceleration.
“I have a number in my head, which is 200 hotels (in the region) because that signifies something,” he said. “There may be a lot of noise, but we’re into organic growth and people are recognizing we’re not confused by anything and we know which brands are in which swim lanes. We have those brands and we follow those swim lanes. And if (a deal) doesn’t fit, we say no.”
He said Hilton is seeing success with both select-service brands and a return to upper upscale and luxury.
“Fifty percent of our pipeline is focused-service, and in the last year we’ve had really good success with luxury and upper upscale,” he said. “It’s indicating consolidation, and also strong recognition of our brands.”
He cited the Conrad Cartagena opening; the forthcoming Conrad Playa Mita, scheduled for a 2019 opening in Mexico; and the Waldorf Astoria Cancún, slated for a 2021 opening; as examples of how the company is taking advantage in growing demand for higher-end hotels in the region.
“People are willing to pay more for destinations and experiences, and we’re in the business of putting the right hotel in the right destination for the right market,” he said.
On the select-service side, Corvinos said the region is ripe for good select-service brands, and Hampton Inn represents a lot of opportunity.
“We have over 50 Hamptons in the region and 10 in Colombia alone,” he said. “We’re flexing this muscle; Hampton in South America is consistent and people love it.”
The company signed its first Hampton in Brazil, and is opening soon in Bariloche, Argentina—a country Corvinos said “has huge potential for growth for Hampton.”