Tech-forward hotel brand joins new “Select by Hilton” line.
Hilton reports that it has signed a franchise agreement with the rising urban market hotel brand, YOTEL.
Under terms of the agreement, YOTEL will continue to independently manage and license its brand of 23 hotels in 10 countries. YOTEL is also the first brand to join Hilton’s new line of “Select by Hilton” hotels.
According to Hilton, the Select by Hilton line will include established hotel brands who will retain their identity. But they will also connect to the Hilton Honors loyalty program while utilizing the hotel giant’s distribution and technology platforms.
Hilton said that YOTEL “has pioneered ways to meet changing guest needs through stays that feature smart room design, and clever tech-enabled features.” YOTEL plans to triple its portfolio size over the next several years, Hilton added.
“The addition of YOTEL to Hilton’s network is the latest example of our commitment to capital efficient growth through a relationship that is both complementary to our existing brand portfolio and offers guests thoughtfully designed, sleek new ways to stay with Hilton in key urban locations around the world,” said Christian Charnaux, executive vice president and chief development officer, Hilton. “This agreement further strengthens our network effect by connecting a beloved independent brand like YOTEL into the powerful Hilton Honors network and commercial distribution system, while preserving what makes the brand unique.”
First launched in London in 2007, YOTEL now operates hotels in Boston, New York, Tokyo, Amsterdam, Glasgow, and Singapore. Room designs feature the “YOTEL SmartBed,” which transforms from a flatbed to a sofa with the touch of a button, along with tech-forward features such as automated luggage storage.
“Hilton brings unmatched global distribution and loyalty scale to our brand and business,” said Phil Andreopoulos, CEO of YOTEL. “YOTEL’s relationship with Hilton allows us to expand our reach while staying true to who we are. What changes for YOTEL is access – not identity – in a capital-light, and scalable way.”
The financial terms of the agreement were not disclosed by Hilton or YOTEL.
Hilton has nearly 250 Hilton Honors members and more than 9,000 properties worldwide. This includes over 6,700 locations in the Americas.
