Yotel enters exclusive franchise agreement with Hilton

Yotel has signed an exclusive agreement with Hilton to bring its properties into Hilton’s global portfolio later this year.

The franchise agreement with Yotel expands Hilton’s network, filling a distinct customer need in the growing lifestyle segment in a manner consistent with its proven asset-light model. Yotel will continue to independently manage and license its brand at 23 hotels across 10 countries, with a goal of more than tripling its portfolio in the coming years.

Yotel will be the first brand in the newly established Select by Hilton, which is designed to grow into a brand that creates new ways to stay for guests, with the trust, confidence and perks that are synonymous with Hilton. High-quality, established hotel brands that join Select by Hilton will retain their own identity and brand management while they connect to the award-winning Hilton Honours loyalty program and enjoy the benefits of Hilton’s superior distribution and technology platforms.

Launched in London in 2007, Yotel has extended its innovative brand to hotels in key markets like New York, Tokyo, Amsterdam, Glasgow and Singapore with smart, efficient room designs that feature the Yotel SmartBed, which can transform from a flatbed to a sofa with the touch of a button, and tech-forward features like automated luggage storage.

The Hilton brand increases visibility and demand for Yotel without altering the experience that defines Yotel’s brand, which will continue to operate with the same quality, intelligent design and service style.

Once integrated into Hilton’s network, Hilton Honours members staying at participating Yotel properties will enjoy the benefits of Hilton Honors, the award-winning guest loyalty program for Hilton’s world-class brands. The nearly 250 million Hilton Honours members who book directly through preferred Hilton channels have access to instant benefits and contactless technology exclusively through the industry-leading Hilton Honours app.

“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.”

“Hilton brings unmatched global distribution and loyalty scale to our brand and business,” said Phil Andreopoulos, Chief Executive Officer 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.”