Al Habtoor Palace Dubai Leaves Hilton LXR, Goes Independent

Good luck, Al Abtoor, you’re going to need it.

The same happened with the Biltmore Grosvenor Square in London. Early LXR property gone independent.

My assumption here is that the LXR brand is the failure - it’s just not attracting the rates they expected for the franchise payments to Hilton and therefore they’ve decided to go it alone instead. The LXR brand seems to be going nowhere to me.

Yeah Lucky, there seems to be a bigger story with some of the recent luxury hotel deals Hilton has done. Both this hotel and the Biltmore in London are leaving the LXR Brand. In addition, the Conrad Midtown is leaving Hilton in June. If I recall, all of these hotels joined these luxury brands around the same time as Hilton was pushing to add more luxury hotels. I count one 12 LXR properties on the Hilton website.

To your point, properties can and do change branding. This started out as a St. Regis. Three years later, it was LXR. Six years later, it's independent. But, could have been yet another brand. In the end, a property has its own reputation.

Younger people are not really interested in brand loyalty anymore, instead looking for unique boutique style stays. I think we will see a lot more de-flagging of properties in destinations that have large numbers of chain luxury hotels and destinations with high tourist traffic.

@ Creditcrunch -- I'm curious what you're basing that on, because loyalty program engagement is just about at an all-time high, for better or worse. You're right, a lot of young people do like more boutique experiences, but whether this is branded as an LXR or not, it's the same mega-luxury hotel regardless, so that doesn't seem to solve that issue. I'd say younger people do like more of the boutique and lifestyle concept, but we've also seen the major hotel groups integrate these types of brands into their portfolios.

I agree, it just doesn't have the same recognition as something like a Conrad, Waldorf, Ritz Carlton, Park Hyatt does.

To me LXR sounds like something trendy, cool, leaning high end, but not in the same level of elevated luxury like those brands above.

@Ben..Nothing other than talking with people at work our TMC and friends, of course travellers on business will seek out chain hotels in order to progress through the tiers and the perks that come along with it but with so many corporate cutbacks I don’t know many that book its employees into 5* these days unless it’s board level or all the 4* are booked up so the need for clusters of luxury hotels in business districts is just not economically viable. I agree brand engagement is certainly maintaining a healthy momentum as is premium air travel but people on holidays are looking for more personalised service with most of these small and independent luxury hotel groups offering better deals if you book direct, there will be a welcome amenity, free super fast Wi-Fi, they are able to deliver individualised service and shun the same same business hotel model.

The hotel had half its front "garden" taken out for a huge tower residential development. And it's being surrounded from most side by more towers now. Its just not in character with its neighbouring buildings now. Al Habtoor has obviously seen how much money there is to be made by building upwards given the rising Dubai property prices. I'd go so far as to speculate that this leaving of Hilton only for this specific property may preclude this relatively small low rise building being knocked down and replaced with another tower within 5 to 10 years. Whether that will have a hotel in it or not, who knows!

I can't imagine caring about the branding of a hotel in Dubai.

I stayed at this hotel while it was associated with St Regis and LXR both. With hilton association, I remember they even provided a complimentary beach access and (a bit worn-out Bently) car transporation to Waldorf Jumeiradh. At that time, I thought it'd be more appropriate to be branded as Waldorf The City. In any case, its interior design now feels outdated, out-of-trend and heavy compared to that of modern luxury, really a time to renovate and update rooms and furniture whether it goes independent or not.

The Habtoor Palace is a dark and sad building.

I often stay at the V Hotel and also like to Hilton al Habtoor for its large, high quality rooms. The lounge is also great (enormous, but not busy, and with a good happy hour offering). The (much more expensive) Habtoor Palace next door seems like the neglected sibling. Habtoor Group is known for “squeezing the lemon” and I can see some differences in ‘renovation budget’ for causing the exit.

Better this way…