Spark by Hilton has grown quickly since the brand launched in January 2023. Designed as a premium economy lodging option, Spark is centered around providing guests and owners with value, quality, and consistency at an accessible price point. The brand’s first hotel opened in September 2023, and less than two years later, it has surpassed 100 open hotels. Moving forward, Spark’s pipeline includes 230 hotels around the world. Alissa Klees, brand leader of Spark by Hilton, recently spoke with LODGING about the brand’s momentum.
When asked about Spark’s rapid growth, Klees said, “Incredible is probably the best word to describe it. When we, going back about a year and a half, were just launching the brand, we thought that it would grow fast. But we did not expect the speed at which it’s happened, and so it’s been a really incredible, pleasant surprise for us.” Klees also explained why the brand’s conversion model appeals to owners. “I think that owners are really intrigued by the conversion model, they’re intrigued or excited to have the opportunity to franchise with Hilton in this new space, and then I think they’re really excited about the renovation and the packages that we kind of put in place here for this brand because it’s long overdue, and it’s bringing some great consistency to this space,” she said.
Factors Driving the Growth
The power of the Hilton commercial brand is a vital factor in Spark’s success. Klees highlighted how owners want the performance that the company is known for and its relationships with customers in various spaces. She then detailed how Spark and other Hilton brands “tend to punch above their weight class at some point in their lifecycle,” citing Hampton’s history as an example.
“Hampton just celebrated 40 years, it is close to just over 3,000 hotels, it’s all across the world. It was initially concepted and launched as an everyday traveler’s brand, an entry-level price point. It did well, and now it is the number-one upper midscale brand,” she explained. “So, then it made room for a brand like Tru to come into place. Tru is our entry-level new-build investment opportunity at Hilton, and again, we launched that six years ago to be an entry-level, introductory brand for travelers and for investors wanting to franchise with Hilton. Now, it has punched above its weight class and is the number-one midscale brand.”
Klees noted that Hilton previously had conversion brands, including Tapestry and Curio, but Spark has allowed the company to target an opening in the market at the entry-level price point. In launching the brand, Hilton aimed to ensure that investors saw returns on their investment, and Klees said that Spark was designed in collaboration with owners “to make sure that it was super economical for them to come into the Hilton system.” This approach, combined with the proven success of Hilton’s other brands, has been crucial to Spark’s growth.
International Pipeline
Spark, Hilton’s fastest launch-to-open brand, has already flourished in the United States, and it has been expanding with new locations in the United Kingdom, Canada, and Austria. In addition to plans for further growth in new markets, Spark is set to open 150 hotels across India through a strategic licensing agreement with Olive by Embassy. This agreement accelerated Spark’s progress, and the brand’s team has been equipped to deal with the speed and work with owners and investors around the world, Klees said.
“The speed has helped us kind of cement where we open,” she explained. “The brand, because it is in the conversion space, is taking the existing asset and giving it new life, and in this case, a new flag. The model is really ready-made for anywhere in the world. In 2023, we launched in the United States, so predominantly our scale today sits in the United States. And then what happened is, our Canadian friends up north said, ‘Hey, we’ve got a great opportunity here.’
“We introduced the brand in Canada. We then decided that in Europe, Middle East, and Africa, there was also this great opportunity to take existing assets and give them a new lease on life, give them an opportunity to have a flag within Hilton. So, we quickly mobilized to launch the brand last year in Europe. We are constantly looking at all of the markets across the globe to see what brands fit where and when we should introduce them.”
Promise for Future Investors
Global growth is at the forefront of the brand. With Spark continuing its expansion in India and planned entry into further new markets, Klees expressed her confidence in the performance of the brand as she looked to the future. She emphasized how it is poised to follow in the footsteps of Hilton’s other brands and hopefully reward the investors who helped get Spark to this point by giving them a favorable return.
“We’re growing so fast, and the performance of the brand has been really positive, and we’re seeing a lot of strengths there,” Klees said. “I’m hopeful that that continues because we did build this as an investment opportunity for our owners and interested parties, so I want them to see the benefits of making the decision that they made. We call them our pioneers because these first 120 [hotels], they jumped in with no history and really took the risk and trusted Hilton to give them a return that is favorable for them.
“I hope that we will see that in the long term because by seeing that in the long term, we would create what we call a flywheel of opportunity because that attracts new owners, more owners so that we can continue to grow this brand. I certainly believe, in the next 10-15 years, this brand is poised to be probably one of Hilton’s largest brands. It will sit right behind Hampton, certainly in size and scale, and as you can see from a performance perspective, I certainly believe that Spark will punch above its class, but that it’s a really good sister and brother to brands like Hampton and Tru.”
With its demonstrable momentum up to this point, Spark has continued Hilton’s tradition of quickly building successful brands. The strength of its conversion model, paired with Spark’s ability to appeal to guests and investors at an accessible price point, positions the brand to continue this trajectory in the years to come.
