PHOTO: Hilton Worldwide CEO Christopher Nassetta introduces the Canopy by Hilton brand in Orlando Wednesday.
On Wednesday, Hilton Worldwide announced the launch of a new lifestyle hotel brand called Canopy by Hiltonaimed at today's leisure and business travelers. Hilton unveiled the new brand concept to nearly 1,900 owners and development representatives at Hilton Worldwide's Global Partnership Conference in Orlando.
We spoke with Jim Holthouser, executive vice president-global brands for Hilton Worldwide about the new lifestyle brand.
Why did Hilton wait until now to unveil a "lifestyle" hotel brand?
We have been studying this market for quite some time. It isn't something we discovered a year ago. This was a deliberate decision on our part. For the last five years our focus as a company has really been about extending our brands to other parts of the world. You have to build infrastructure to do that.
A couple of years ago we felt we were far enough ahead and we turned out attention first to Curio, our collection of four- and five-star independent hotels. Now we have introduced Canopy by Hilton, our latest brand positioned in the upscale segment with our Hilton and Embassy Suites brands.
What makes Canopy by Hilton different from other "lifestyle" hotel brands?
First of all lifestyle brands have usually been the domain of high-end and luxury-priced hotel brands. We saw an opportunity to bring lifestyle hotel products down to a price point where more developers and customers would be interested in them. Canopy is all about the location and the neighborhood. After that you need to have cool design, energetic public spaces and really good rooms. What we've been able to do is take those and engineer that into a hotel that will work for both customers and developers.
Where does Canopy by Hilton fit into your company's brand portfolio?
We have our luxury brands Waldorf-Astoria and Conrad, and then we have our upper upscale brands, including the new Canopy by Hilton, Hilton and Embassy Suites. Then you drop one segment and you'll find Doubletree. Canopy is positioned slightly above Hilton. Hiltons in urban areas tend to be bigger, convention and meetings-oriented hotels with about 700 to 800 rooms, but Canopy won't be a big meetings and groups property. Canopy will feature smaller hotels of about 200 rooms at a slightly higher rate than Hiltons, but breakfast, evening tastings, Wi-Fi and a welcome-to-the-neighborhood gift will be included in the rate. It's a bundled offering that will end up sitting slightly above Hilton in terms of rate.
How are you integrating Canopy by Hilton properties into the destination?
Before the hotel you have to think neighborhood. The customer is gravitating to destination neighborhoods, think Soho in New York City, the Gas Lamp district in San Diego, and the Savannah historic district. Customers are looking for hotels that are authentic, unique lodging experiences. We have to put these new hotels in the right kinds of neighborhoods, since so much what we put into the hotel itself is a reflection of the neighborhood.
What are some of the amenities included at Canopy by Hilton hotels?
When you arrive at the hotel we give you a "welcome to neighborhood" gift, which is different in every hotel. In Chicago, for example, it might be a small bag of Garrett's popcorn. In the morning there's a really nice breakfast included in the rate. In the evening, there's a tasting, a chance to introduce guest to something they haven't experienced, such as local micro brews, local wines, spirits-whatever the local market is known for.
Guests can sample the best that the local area has to offer. Every hotel also will have a full bar. We'll also let guests know about local events and attractions, such as if there's a really cool new art exhibit down the street or a free concert in the park-whatever is happening and of interest to people who want to experience neighborhood.
How do you define a "lifestyle" hotel in this case?
Lifestyle for us means it has to have cool design, an eclectic organic and natural design that also reflects the flavor of the local market. You'll so much of what we put into the box is reflection of the neighborhood. We will exercise discipline by not opening up in airports, because the location has to be absolutely perfect. These won't be suburban hotels or next to malls, but in urban markets in destination neighborhoods and even some resort locations-think South Beach. There will be some newbuild hotels, but a lot will be conversions and some will be adapted reuse buildings. They will all be different sizes and the design will all be different as inspired by the local market.
What are some of the unique design features of the rooms at Canopy by Hilton?
There will be five or six different elements in Canopy rooms. In the hotel business you have to keep it simple. Fundamentally you are selling a bed, so we'll have a great I Series bed with a jell popup mattress that's new in the market. It removes body heat and moisture from underneath the blankets. There also will be an organization system in the room to stow your personal things, a chaise lounge, great windows, a 48-inch flat-screen TV and an art wall that will all be standard. In the spirit of bringing in the neighborhood, there will be an eclectic design ethos. Bedside tables will be mismatched, art will be different, and the room will be designed to reinforce the character of the neighborhood. All rooms will look slightly different, but will have certain common elements. Bathrooms will have predominantly showers with nice tile work and single sinks. One Canopy will not look like any other.
What are some of the unique features of the design of the public spaces?
First of all you won't have a traditional front desk, this will be first brand we have that starts with a straight-to-room product. Your iPhone will function as your key, which is something we already have across 4,200 hotels right now. There will be a hospitality desk, but it will be more about guest service and less about transactions. As we think about design, every hotel will look different, but there will be brick walls, hard stained concrete floors or wood flooring, a common full bar, and a food and beverage area that will be open from 6 a.m. until 11 or 12 p.m.-that's where breakfast will be served in the morning. For the food offering think Dean & DeLuca wrapped in a way for Canopy. An abbreviated menu will feature fresh salads, sandwiches, healthy food, with a nice variety available all day long. We'll have fitness centers with PreCor or Techno gym equipment. Every Canopy also will have a number of bikes, colored in a vibrant orange color, so guests can explore the neighborhood.
What demographic market does Canopy by Hilton target?
One of the things that we try to do is segment by customer mindsets and trip occasions. Talking about demographics is no way to talk about the business. Typically for this brand we look at "originals," who are people who go out of their way to look for neighborhoods, though that demographic does skew to millennials, women and LBGT. But you still have 50- and 60-year-old people who crave this kind of hotel. Another group we target is called "cultured vacationers," people who love to travel and learn something and are looking for authentic, unique lodging options.
What markets are you targeting for development beyond the U.S.?
We had 11 hotels signed up here in the U.S. even before we launched. This has been one of our most intensely researched brands. Roughly 9,000 different individual customers in China, Europe and U.S. have seen the brand, as well as about 150 different hotel developers. In our business you have to nail it with the people who buy hotel and those who build it. This brand was thoroughly tested with both. Canopy is meant to be a global brand. The 11 we started with just happened to be in the U.S. where our biggest base of our owners is today. There's no reason this brand can't work in major cities in China, Dubai, Qatar. It's also perfect for neighborhoods in Paris, Munich and Berlin.
What has been the reception to Canopy by Hilton from your 1,900 owners and developers, as well as travel agents?
The response from owners and developers has been great. We ran out of brochures and development materials at our owner's conference earlier this week. It's really been very well received. When you deal with hotel owners, they aren't shy. They are very sophisticated people and have spent years building properties. As for travel agents, we haven't really marketed it to them yet, since we just launched this brand. But we do a lot of business with agents and we have a lot of ways to market to them, through the GDS and other b-to-b marketing. Travel agents represent at least 20 percent of our bookings.
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