Hilton takes major stake in Sydell Group’s NoMad brand

McLEAN, Virgina - As rumored and continuing its acquisition approach to growth, Hilton has acquired a majority controlling interest in Sydell Group to expand the luxury lifestyle NoMad Hotels brand from its existing London flagship location to high-end markets around the world. Terms of the deal were not announced but it does give Hilton much-needed depth in the luxury segment.

Sydell will be responsible for design, branding and management of the NoMad brand while Hilton will lead all development. The NoMad brand will be fully integrated into Hilton’s commercial platforms, including Hilton Honors. All NoMad properties will remain independently owned.

Hilton projects that as many as 100 NoMad properties will be developed globally over time, with approximately 10 already in advanced stages of discussion with Sydell. NoMad’s flagship property – the NoMad London – will be available for booking to Hilton guests beginning later this year, and an expansion of NoMad is planned to follow in the world’s top markets.

NoMad Las Vegas is excluded from the transaction and will rebrand to a new flag in the coming months.

Analyst C. Patrick Scholes at Truist Securities wrote today that they don't know how quickly NoMad will grow in the next few years despite the Hilton affiliation. "Whether hotels are converted or are built new, the process for adding hotels to a nascent lifestyle luxury brand likely takes more time due to developing or adjusting brand standards than a select-service hotel (at least for NoMad that would be our assumption),” Scholes wrote. "Every location and hotel added from a current base of one hotel in London (excluding Las Vegas and the NYC NoMad hotel that did not reopen after the pandemic) will matter a great deal to the brand standard for many years to come.”

Scholes added that because Sydell will be managing the brand, perhaps existing brand management quickens the timeframe for new deals to go from signing to opening.

Over the last decade, Sydell, founded in 2011 and led by founder Andrew Zobler, has created seven lifestyle brands, including NoMad, The Line, Freehand and The Ned. Sydell has since sold multiple brands, including the Line and Freehand brands.

Now, Hilton retains the right to Sydell’s current brands, which include NoMad and The Penny. The Penny hotel in Brooklyn, however, will remain independently operated and will not be part of either the partnership or Hilton’s portfolio.

This deal adds to other recent Hilton partnerships and acquisitions, including the planned acquisition of Graduate Hotels and recently announced deals with Small Luxury Hotels of the World and AutoCamp.

“Adding NoMad to our growing brand portfolio will create new offerings for guests seeking unique luxury experiences in some of the world’s most desirable locations,” said Chris Silcock, president, global brands and commercial services, Hilton. “By pairing an already proven brand concept that’s ready for expansion with the power of Hilton’s commercial engine, we are accelerating our ability to drive growth in the luxury lifestyle segment.

“Coupled with our recently announced exclusive partnership with Small Luxury Hotels of the World and our planned acquisition of the Graduate Hotels brand, Hilton is leading the hotel industry with the addition of innovative new luxury and lifestyle offerings that meet changing guest needs and add new opportunities for owners to join our system,” Silcock said.

“We’re excited to begin this new phase for Sydell, as we enter into a partnership with Hilton to expand the NoMad brand around the world,” Zobler said. “Grounded in the idea of the hotel as a great home, the NoMad brand is dedicated to providing guests with accessible luxury, exceptional design and award-winning food and beverage. Hilton’s expertise in both luxury and lifestyle, paired with its track record in scaling brands, makes for an exciting opportunity. We look forward to seeing NoMad expand into sought-after neighborhoods all around the world.”

With this deal, its partnership with Small Luxury Hotels and via organic luxury growth through brands like Waldorf Astoria, Conrad, LXR and Signia, Hilton’s total luxury inventory is expected to 600-700 properties in the coming years.