by Tim Wood
Last updated: 5:34 PM ET, Wed October 15, 2014
PHOTO: Rendering of the lobby at the Portland Canopy by Hilton location. (courtesy Hilton Worldwide)
Hilton Worldwide put a name and a more defined opening date to its new boutique brand Wednesday, announcing Canopy by Hilton as its 12th brand at a meeting of owners and development representatives in Orlando.
The company has signed letters of intent in 11 U.S. locations, with the first hotels scheduled to begin opening in 2015. Hilton announced plans for its lifestyle brand earlier this year, but this is the first concrete details on the branding.
"Built on extensive market research, our highly anticipated Canopy by Hilton brand delivers a fresh approach to hospitality and the guest experience," Hilton Worldwide president and CEO Christopher Nassetta said before 1,900 owners and development officials gathered for the company's Global Partnership Conference.
"We saw an opportunity to not only enter the lifestyle space by developing a new brand, but also to redefine this category by creating a more accessible lifestyle brand. We identified the need to take the emphasis off of capital-intensive design and deliver exactly what the target consumer desires: an energizing, comfortable stay with more included value."
The company released the video below via social media channels Wednesday to help introduce the brand to consumers.
Canopy is focusing on a high-end, local-feeling experience for the traveler at a midscale price.
"We've launched a brand that is all about the mindset of today's traveler and creating a positive stay," said John T.A. Vanderslice, global head, luxury & lifestyle brands, Hilton Worldwide. "Canopy is the energizing new hotel in the neighborhood offering simple, guest-directed service, thoughtful local choices, and comfortable spaces, so guests simply feel better going forward."
Technological convenience and local sourcing are key components to the strategy. Using your mobile phone for both advance check-in and as a room key -- a smart idea for the younger traveler looking to skip registration lines and ditch room cards that easily demagnitize.
The local component involves emphasizing elements of the neighborhoods surrounding the hotel, such as using local craft brews at the restaurant, locally-produced beers, wines and spirits at free evening tastings and spotlighting local artists on the lobby walls. Guests will receive gift bags with items such as popcorn or chocolate inside, free Wifi and a free artisan-style breakfast with their stay. Rooms will be smaller than the standard 350 square feet found in most hotels, but still have a wide range of amenities.
The Canopy announcement comes after a lawsuit settlement in 2010 with Starwood Hotels & Resorts, which alleged Hilton stole documents related to developing a boutique brand. Hilton admitted no wrongdoing, but paid a cash payment and agreed not to enter the lifestyle market for two years as part its deal with Starwood, which also owns the Aloft and W Hotels brands in the boutique space.
The initial wave of agreements include both larger cities such as Miami, Washington, D.C. and London as well as locations in upscale parts of midsize cities such as Savannah's Historic District, Portland's Pearl District and The Commons in Ithaca, N.Y.
The boutique concept is gaining steam, as major chains chase the all-important millennial traveler looking for more personality and less big-box hotel design at an affordable price point. Starwood's Aloft and Best Western's recently-announced Vib will compete for the midscale consumer while Marriott's Edition and Hyatt's Andaz brands will cater to the higher-end boutique visitor. That's on top of companies like Kimpton who already have an established stronghold in the boutique sector.
Hilton officials said Wednesday they think they will distinguish themselves in the field by appealing to a broader range, age and style of traveler by offering touches such as more natural light and a no-two-hotels-are-the-same feel within a worldwide brand.
"The demands and preferences of today's travelers continue to evolve, and Canopy by Hilton creates something new for consumers in the lifestyle space," said Jim Holthouser, executive vice president, global brands, Hilton Worldwide. "Canopy by Hilton will deliver more choice and control for guests than ever before, from a mobile straight-to-room arrival to surprising extras throughout each stay."
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