Hilton is shifting its focus in Saudi Arabia from luxury to mid-market hotels as the region’s high-end market becomes more saturated. Simon Vincent, Hilton’s President for Europe, Middle East, and Africa, highlighted that the company’s future growth in the country will heavily rely on mid-market brands and franchises.
The Move Towards Mid-Market Growth
Vincent explained that while there is an abundance of luxury hotels such as Conrads, Waldorfs, Hiltons, Curios, and DoubleTrees in the region, the mid-market segment is where the company sees the next wave of opportunity. This strategy aligns with how markets typically evolve, starting with luxury establishments and expanding into more affordable categories.
Turkey as a Model for Success
Hilton plans to replicate its successful model from Turkey, where it transitioned from luxury to a broader mid-market presence. The company started with the Hilton Istanbul Bosphorus in 1955, and has since expanded to over 100 locations mainly through mid-market brands like Hilton Garden Inns and Hampton hotels. Vincent noted that these hotels often stand out as the best options in their respective towns and cities, demonstrating the potential success of this approach in Saudi Arabia.
Reporting based on coverage first published by skift.com.