During a roundtable, Nassetta spoke about hotels that
temporarily closed in St. Paul, defended their decision to cut ties with another hotel and talked 'organic growth.'
NEW YORK -- Hilton CEO Christopher Nassetta on Tuesday said
that hotels in Minnesota that temporarily paused operations on January 18 had
received bomb threats, as protests of U.S. Immigration and Customs Enforcement
actions continued in the state.
Those hotels, the DoubleTree St. Paul Downtown and
InterContinental St. Paul Riverfront, are owned by the Mille Lacs Band of
Ojibwe tribal government. DoubleTree is part of Hilton’s brand portfolio (the
InterContinental brand is owned by IHG Hotels & Resorts).
Speaking at a media roundtable in New York, Nassetta said, “They
were getting bomb threats, and they did not feel comfortable operating the
hotel in those circumstances.”
Nassetta also defended Hilton’s decision to cut ties with a
Minnesota Hampton hotel that declined to host ICE agents.
He said the move to terminate the Hampton Inn Lakeville’s
franchise agreement came after the hotel’s ownership acknowledged the incident
was “not in keeping with our policy” and agreed to fix it but ultimately failed
to follow through.
There’s 'no evidence in terms of the deals' that suggests any impact from U.S. politics on international business.
Christopher Nassetta
The situation drew attention after ICE questioned the hotel
about canceled reservations in a social media post.
“We’re a welcoming place for all,” Nassetta said. “The
minute we start trying to call balls and strikes, where would it end? We are
not going to get into... politics and the division that’s going on.”
But the situation at the DoubleTree was a “different issue.”
“A safety and security issue is a different issue,” he said.
“If they’re closed, they’re closed to everybody.”
When asked whether international hotel investors remain
comfortable working with an American-based brand given the current U.S.
political climate, Nassetta said he’s “not losing a lot of sleep on it.”
“Hilton has been global for so long,” he said. “We’ve been
around the world for 80 years. I think in most places, we [have been] such an
embedded part of their communities for so long, they don’t really think of us
quite the same way.”
He added that there’s “no evidence in terms of the deals”
that suggests any impact from U.S. politics on international business.
Hilton’s strategy: ‘Organic’ growth
Nassetta also outlined Hilton’s growth strategy and said the
company was open to further brand expansion in the lifestyle space and adjacent
segments, including a potential student housing concept that would complement
the company’s 2024 acquisition of Graduate Hotels.
I think what you’re going to see out of us is organic.
Christopher Nassetta
He also pointed to potential for a brand that sits “underneath
Graduate” for smaller college towns, as well as a possible gap in the lifestyle
space between Hilton’s Motto and Canopy flags.
All-inclusive expansion will also remain a focus. While the
company currently has about 6,000 rooms in the segment, Nassetta said Hilton
plans to double that count.
“Our core Honors customer loves [all-inclusive] because it’s
a great value proposition,” Nassetta said, adding that the company has deals “in
different stages of development and gestation” that he expects will bring the
portfolio to a size comparable to Marriott’s all-inclusive offerings.
Nassetta added, however, that he doesn’t anticipate more
merger activity “anytime soon,” describing the company’s most recent
acquisitions as “unique situations.”
“I think what you’re going to see out of us is organic,” he
said.
Note: This story first appeared in Travel Weekly