Hilton has today announced the launch of Outset Collection by Hilton, which is the company’s 25th brand, and eighth brand in its growing lifestyle portfolio. As is the case with so many new hotel brands nowadays, this one seems heavily focused on the benefits it can offer hotel owners, rather than what it can offer guests.
In this post:
Basics of the new Outset Collection by Hilton brand
Outset Collection by Hilton is intended to tap into the demand that guests have for booking boutique hotels with an independent identity and experience. The brand will initially launch in the United States, and will “put Hilton’s signature hospitality in places guests might not expect, ranging from urban destinations, small towns, adventure outposts and offbeat hubs.”
Outset Collection by Hilton will build on the success of conversion hotels, with a range of hotels offering upscale finishes and story-driven designs. The format will be flexible, so that each location’s identity can run deep, whether it’s a revived landmark or urban boutique.
As it’s described, owners will balance strong product and service with a wider, more flexible range of experiences and amenities, along with the basics of what guests expect at Hiltons, including participation in the Hilton Honors program. For example, food and beverage offerings will vary across the brand, based on market demand, ranging from cafes with light bites, to full lunch and dinner concepts.
The collection’s first hotels are expected to open later this year, with bookings available as of November. At launch, Outset Collection will have more than 60 hotels in development, with long term growth potential for more than 500 hotels across the United States and Canada alone. Confirmed locations include a basecamp for exploration in Moab and a boutique hotel in Chicago.
Here’s how Hilton CEO Chris Nassetta describes this:
“At Hilton, we continue to reimagine what’s next in hospitality, and today, we’re delivering it. Outset Collection is an expression of our commitment to growth, innovation and meeting the evolving needs of travelers around the world. By expanding our Lifestyle portfolio, we are broadening the ways guests engage with Hilton and unlocking new possibilities for our owners, our teams and the communities we serve.”
My take on the Outset Collection by Hilton concept
With the number of hotel brands that the major groups have nowadays, it can be tough to decipher what makes each of these brands different.
I think the first heading in the press release is a pretty important one, about how Outset Collection by Hilton will offer “a focus on owner flexibility with the backing of Hilton.” As you’d expect, that means there won’t be too many consistent brand standards. In other words, as long as hotel owners are willing to give Hilton a cut, the company is happy to let those properties join the Hilton portfolio.
There’s simply no denying that over the years, we’ve seen fewer and fewer consistent brand standards introduced for properties. The major hotel groups want to grow at any cost, and often that puts the hotel owners in the driver’s seat, in terms of negotiating power.
For guests, I suppose growth is good, in the sense that it’s nice to be able to earn and redeem points for all kinds of experiences. At the same time, it’s a double edged sword. As the major brands have grown, there has been less consistency between properties, in terms of amenities, service, guest experience, etc. And that says nothing of the loyalty program devaluations we’ve seen, plus lack of compliance with program rules by individual properties.
At this point, the major hotel groups are almost like modified online travel agencies, and they’re just looking to take a cut on where you choose to lay your head at night.
Bottom line
Outset Collection by Hilton is a new hotel brand, intended to offer boutique and unique lodging options. In terms of luxury, it’ll be on the lower end of the spectrum (as it’s “upscale”), and owners will have a lot of flexibility. Based on my interpretation, I suspect this will be a slightly lower end and less consistent version of Tapestry Collection by Hilton. The first properties are expected to open in the coming months, so we should learn more soon.
What do you make of the Outset Collection by Hilton concept?
Comment about hotel groups just becoming online travel agencies rings so true especially with points devaluation and inconsistent standards across hotels
I’m trying to see how Owner Flexibility is likely beneficial for guests and I’m coming up empty. It sounds a lot more like a euphemism for offering loyal members less.
What's the point of all these "collection" brands? The only reason to stay at a chain hotel is the guarantee that it will deliver a reliable predictable experience. "Collection“ brands are by definition diverse and don't feature any standardisation at all. So why shouldn't I simply stay at an independent hotel?
If there are holes in a hotel's footprint (e.g. Hyatt has exactly one hotel - in Florence - along I-95 between Richmond, VA and Savannah, GA along with a lot of other gaps), I can sort-of "get it". If I want to drive my business to a given chain and I just /can't/, that can result in loyalty breakage if I'm suddenly spending a bunch of nights somewhere I can't use them (which can cascade).
...If there are holes in a hotel's footprint (e.g. Hyatt has exactly one hotel - in Florence - along I-95 between Richmond, VA and Savannah, GA along with a lot of other gaps), I can sort-of "get it". If I want to drive my business to a given chain and I just /can't/, that can result in loyalty breakage if I'm suddenly spending a bunch of nights somewhere I can't use them (which can cascade).
This was more of a "Hyatt problem" than most of the other chains over the last few years, but I think it's WLOG /somewhere/ significant for most chains - but if I suddenly have to move 30 nights from Marriott to Hilton or Choice (there's one area where this is plausibly the case for me), that could result in a "hard cut-over" in terms of loyalty if it means that now I can't make Platinum with Marriott and need to focus on Hilton Diamond or Choice Whatever.
There's also the question of "elite standards" vs "brand standards" - knowing I'll get a 4PM check-out is a BFD for me in the scheme of things, for example, so even if a lot of other stuff is loosey-goosey that might be enough.
HILTON HOTELS SUCKS
I was at the gym at my hotel and it looked across at the Drury across the street. It was early morning and there was a Drury truck making a delivery presumably from a Drury warehouse. As far as I know they are a vertically integrated brand right down to the trucking. And because of that they are offering a decent(?) breakfast and dinner option to guests. Meanwhile legacy properties struggle to offer the bare...
I was at the gym at my hotel and it looked across at the Drury across the street. It was early morning and there was a Drury truck making a delivery presumably from a Drury warehouse. As far as I know they are a vertically integrated brand right down to the trucking. And because of that they are offering a decent(?) breakfast and dinner option to guests. Meanwhile legacy properties struggle to offer the bare minimum.
It's certainly possible there is a risk to the "asset light" model. With owners getting their share and the management company getting there share and the brands getting in there share - maybe there is room in the market for vertical integration?
I actually wonder what it would look like if a chain decided to abandon the "asset light" model and start trying to either (1) own more hotels outright or (2) at least have a significant equity stake in more of their properties.
When I first read this, I was confused because I thought Hilton already had an upscale collection brand targeted at conversions. They do - it's Tapestry. But that apparently is for "upscale" only, this brand will target both upscale and "upper midscale," with lower brand requirements and potentially lower fees. Marriott talked about lowering fees for some of its new brands earlier this year.
Right now, people love this business model, especially for Hilton...
When I first read this, I was confused because I thought Hilton already had an upscale collection brand targeted at conversions. They do - it's Tapestry. But that apparently is for "upscale" only, this brand will target both upscale and "upper midscale," with lower brand requirements and potentially lower fees. Marriott talked about lowering fees for some of its new brands earlier this year.
Right now, people love this business model, especially for Hilton (look at its stock). But over the very long run I do wonder if this is just going to lead to hotel owners wanting lower fees from these hotel companies. If you own a Hilton Garden Inn in a market, having a bunch of new Tapestry/Output/etc just takes away your customers. Unless people are willing to pay more to stay in a Hilton hotel - and they may not - the model will start to get stressed
Hilton has Tapestry for upper midscale soft brands (HGI level), Curio for slightly higher scale soft brands (Hilton level), then LXR for luxury soft brands (Conrad/Waldorf level) - though you also get the branded Doubletrees and Hiltons, like El Conquistador, a Doubletree Resort. None of this is confusing, so I don't think adding another soft brand will hurt at all.
The hotel industry has gone down the SHITTER since the halcyon days of Starwood Preferred Guest.
As a '90s kid I remember taking family vacations to Sheratons and Westins all over the country, and unfailingly, we'd receive the epitome of polite and polished hospitality from all the staff. I was an authorized user of my father's Starwood card, enshrined in pop culture by Timbaland in "The Way I Are" ("red American Express").
Hilton has always been meh. I remember saying at the New York Hilton Midtown with Gold status back when...
As a '90s kid I remember taking family vacations to Sheratons and Westins all over the country, and unfailingly, we'd receive the epitome of polite and polished hospitality from all the staff. I was an authorized user of my father's Starwood card, enshrined in pop culture by Timbaland in "The Way I Are" ("red American Express").
Hilton has always been meh. I remember saying at the New York Hilton Midtown with Gold status back when it came with breakfast. The host showing me around the breakfast area made a repeated, enunciated effort to tell me the COLD continental buffet was free, but follow her and take a look at the hot items, do I want to upgrade? (no... it's freaking Manhattan, I could have Seamless'd the most amazing poached eggs and avocado over spiced quinoa and hummus, with a side of the most delicious cold brew, for half the price of the fatty bacon and whatever other slop was on offer).
remember Hilton intro'd a $15 f&b credit toward the beginning of the pandemic as a replacement for the breakfast benefit. Despite inflation, that credit has not increased in value. Thanks for nothing, Hilton Hotels!