Hilton’s Newest Brand Opens First Location

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In January 2023, Hilton Hotels announced its nineteenth brand, Spark by Hilton. Instead of further segmenting the current market with niche ideas like lifestyle brands, Hilton decided they would try to develop a new market. They call Spark a “Premium Economy” brand.

The introduction of Spark by Hilton fills an open space in the industry by creating a new premium economy lodging option to meet the needs of even more guests and owners seeking value, quality and consistency.

Hilton President and CEO Chris Nassetta explained where the brand fits into the Hilton company on an earnings call in February.

We will come in [with pricing] plus or minus 20% below Tru by Hilton. It will price above the traditional economy space, but will be a better, higher-quality and more consistent product.

Here is the launch video for Spark by Hilton.

 

When questioned by analysts if Spark by Hilton is going to be a place to put Hampton Inns that aren’t being kept up to brand standards, Nassetta replied that the company maintains discipline in the Hampton brand and isn’t afraid to kick properties out. Instead, Spark by Hilton is going to grow through conversions from other hotel brands. Hilton estimates the cost of converting a hotel to the new brand to be approximately $20,000 per room.

The first Spark by Hilton location recently opened in Mystic, CT. Previously a Days Inn by Wyndham Hotels & Resorts, the property underwent changes to the exterior, public spaces and rooms to turn it into a Spark.

While the decor is getting an update, this is definitely still a brand for budget-minded travelers. You’ll find wall-mounted A/C units and no large flatscreen TV. Here are some publicity shots of what the design will look like.

The public spaces also will get a refresh but the layout of the properties will remain the same.

Hilton says there are 400 properties in the pipeline to become Spark by Hilton hotels. 98 percent of them are from other chains or independent. There are a few Hampton Inns on the list, but no hotels from other Hilton brands. The company hopes that Spark will eventually become one of the largest growth drivers, bringing new customers into the Hilton ecosystem and eventually staying in more expensive brands.

For now, there are 11 hotels listed on the Hilton website. Opening dates vary from November 2023 to June 2024. As Hilton promised, all of them apparently are conversions from other chains. All it takes is a Google search on the address to see which brands are being converted.

• Spark by Hilton Fort Wayne – Comfort Inn
• Spark by Hilton Sarasota Siesta Key – Best Western Plus
• Spark by Hilton Savannah Airport – Comfort Inn and Suites
• Spark by Hilton Germantown Washington DC North – Holiday Inn Express & Suites
• Spark by Hilton St. Augustine Historic District – Ascend Hotel Collection (Choice)

In other countries, being a budget hotel doesn’t mean that the property is a dump. For example, we stayed at Motel One in Munich and while the room was very small, the hotel was spotless. In the US, the problem with budget chains is the inconsistency. While you might find a nice Comfort Inn or LaQuinta, there’s also a chance you’ll leave the hotel without staying the night.

Spark by Hilton is trying to fix both problems by providing a lower-cost option with the consistency you expect from a large-chain hotel. With only one hotel open so far, it might be a while to see how well they’re able to accomplish those goals.

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