Hilton is content with its real estate ownership and remains committed to introducing a lifestyle brand to its portfolio, said CEO Chris Nassetta during an interview at ALIS.

　　With Hilton Worldwide Holdings’ high-profile initial public offering in the rearview mirror, the company is focusing its efforts on growing its portfolio.

　　During an interview at last month’s Americas Lodging Investment Summit, President and CEO Chris Nassetta said the company’s growth strategy includes eventually adding a so-called “lifestyle” brand and maintaining its roster of real estate holdings.

　　"We are interested most certainly in doing something in the lifestyle space,” he said. "Exactly what we’re going to do and when we’re going to do it, not to be coy, but we’re not really ready to talk about.

　　"We’ve done a lot of work,” he added. “We’re going to continue to think that through, and when we’re ready to do something, we’ll most definitely let you know.”

　　While there is no official definition of lifestyle hotels, the general perception is they are trendy, innovative, boutique-style hotels providing customization and unique experiences for their guests. Five years ago Hilton launched a brand called Denizen but it never got off the ground because Starwood Hotels & Resorts Worldwide filed a lawsuit alleging corporate espionage surrounding the brand.

　　A settlement reached in December 2010 included provisions that prohibited Hilton from acquiring or developing any lifestyle or branded-boutique hotel product that would occupy the same market space as its former Denizen Hotels brand. More than a year after that provision expired, Hilton is taking its time entering the lifestyle space.

　　"It’s a space we think about differently maybe than some of the competition,” Nassetta said. “But it’s certainly a space that is interesting and that we will at some point pursue.”

　　Happy with real estate ownership

　　Meanwhile, Nassetta said Hilton also is in no hurry to shed corporate-owned assets. With the 100th anniversary of the company’s founding five years away, Nassetta said he is comfortable having a large stake invested in real estate assets.

　　"Right now we’ve got about 37% of (Hilton’s earnings before interest, taxes, depreciation and amortization) in our owned segment,” Nassetta said. “Based on where I think we are in the cycle, we think this is a really sweet spot for real estate ownership.”

　　Hilton has 4,080 hotels, resorts and timeshare properties comprising 671,926 rooms in 90 countries and territories. Its brands include Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, DoubleTree by Hilton, Embassy Suites Hotels, Hilton Garden Inn, Hampton Inn & Suites, Homewood Suites by Hilton, Home2 Suites by Hilton and Hilton Grand Vacations.

　　According to its S-1 SEC filing from September 2013 in preparation for its recent IPO, Hilton revealed it owns or leases interests in 157 hotels, including The Waldorf Astoria New York, the Hilton Hawaiian Village in Honolulu and the London Hilton on Park Lane.

　　Hilton’s objective is to maximize the real estate value it has on existing assets rather than adding more property to its portfolio.

　　"We’re not activating the real estate segment in terms of adding new units, but we’re … incredibly, actively engaged in maximizing what we have,” Nassetta said. “There (are) significant opportunities from an operational point of view (and) meaningful upside as group business continues to come back as a lot of these hotels are big group hotels that are going to benefit from the resurgence of group business.

　　"We’re very excited about the opportunities in the real estate portfolio over the next several years,” he added. “I’m very comfortable having it as part of the company.”

　　Nassetta said the real estate ownership builds upon the foundation laid by founder Conrad Hilton when he bought The Mobley, a hotel in Cisco, Texas, in 1919.