The company will open 25 new luxury hotels in the Asia-Pacific region over the next few years, aiming for long-term growth in Asia's luxury travel market as COVID-19 restrictions recede in the rearview mirror.

Hilton in 2027 will open India's first Waldorf in Jaipur, the capital of the state of Rajasthan. The city is known as the "Pink City" because of the color of the buildings in the old city, a World Heritage Site. The company has signed a management agreement with the Dangayach Group, an Indian jewelry and real estate business that will own the hotel.

The hotel will feature villas with swimming pools and guest rooms on a roughly 9-hectare site. Events will be held in conference and banquet facilities, and outdoors on an extensive lawn as the property tries to tap demand for India's famously lavish weddings.

"India holds a strategic significance for Hilton, and we are eager to establish a new standard for luxury in the country," said Alan Watts, president of Hilton's Asia-Pacific operations.

Hilton has also decided to bring Waldorfs to Kuala Lumpur, Malaysia; Hanoi, Vietnam; and Sydney, Australia. In China, the company will add its top-of-the-range hotels in Xi'an and Shanghai. Japan's first Waldorf will open in Osaka in 2025, followed by Tokyo in 2026.

In addition to the Waldorf, Hilton's luxury brands include Conrad and LXR.

Hilton now operates 33 luxury hotels in the Asia-Pacific region. The 25 new properties are either under construction or being renovated.

With demand for vacations strongly rebounding, hotel owners and investors are gaining confidence about the future. Clarence Tan, senior vice president of development for Asia-Pacific at Hilton, said most of the luxury hotel management contracts awarded since 2022 have been new projects, rather than restarts of projects that were frozen during the pandemic.

According to STR, a subsidiary of leading real estate analysis company CoStar Group, hotel revenue per available room (in the local currency) in Indonesia, Thailand, Malaysia and Singapore in June were 13% to 24% higher than in June 2019, before the pandemic.


Clarence Tan, senior vice president of development for Asia-Pacific at Hilton, says tourists 
are increasingly interested in special experiences. (Photo by Mayuko Tani)

Hilton's revenue per available room in the Asia-Pacific region has rebounded strongly. In the January to March period, the figure was 91.2% higher than it was a year earlier. That was followed by a 79% increase in the April to June period.

Business travel demand is also recovering. Large-scale demand, such as company-incentivized trips, is expected to catch on in the future.

Chinese demand for international travel, which had lagged as COVID restrictions remained in place, is also expected to see a full-fledged recovery now that bans on group travel have been lifted.

Beyond the current "revenge travel" trend, Hilton and other hotel companies see a bright future in Asia. One reason for the industry's high expectations is that economic expansion will mean more wealthy people. Another is that millennials, who place greater priority on "experiences," will likely begin spending more on vacations.

"The customers are increasingly looking for unique travel experiences. They are looking for things that are dear to them, whether it's in the holistic wellness space, in the way they live, in how they eat, or in how to be sustainable. So [they expect hotel's services and products] in the luxury segment to be further upscale and more luxurious to meet their expectations," Tan said.

"The challenge to grab the market share in the luxury segment is very rewarding for hotels because of the premiums the customers are willing to pay, which is why we have been attracting hotel owners [to the Waldorf brand]," he added.

Hilton is not alone in betting on luxury. InterContinental Hotels Group (IHG) of the U.K. in 2021 launched a new brand of distinctive luxury hotels, the Vignette Collection, which has six properties scattered around the world, including one in Pattaya, Thailand's beach town. The intention is to grow the brand to more than 100 properties in 10 years.

In Asia, the company plans to open Vignette hotels in Phnom Penh, Cambodia, and Osaka.

According to real estate consultant JLL, the Asia-Pacific region has 560,000 luxury hotel rooms, a number that is expected to increase by 90,000 in 10 years.