The Hilton news just keeps on coming. Following a record-breaking IPO launch that brought in $2.35 billion, Hilton told the Wall Street Journal that expects to launch a new boutique and lifestyle brand in 2014.
During an interview at the stock exchange, CEO Chris Nassetta told the Wall Street Journal that the launch of a boutique brand was something the company was working on. It would focus on competing with Starwood’s W Hotels brand as well as Marriott’s Edition brand.
Hilton dabbled with the idea of a boutique concept five years ago when it was gearing up to launch a brand called Denizen. But the company was hit by a lawsuit from Starwood, which alleged that Hilton was using stolen confidential documents to develop the new chain. Hilton eventually settled with Starwood and agreed not to enter the lifestyle segment for two years. That two-year prohibition expired in January.
On its first day of trading, Hilton shares rose 7.5 percent to $21.50.