Hilton Takes Control of Sydell Group, Aims to Add 100 NoMad Hotels

NoMad London

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After not acquiring a brand for 16 years, Hilton has now acquired its second in a month. The hotel giant is clearly hungry for growth.

Hilton said Wednesday it had acquired a majority controlling interest in Sydell Group, the owner of NoMad Hotels.

The companies didn’t disclose the terms of the deal. The transaction is subject to regulatory approval.

Hilton expects to build up to 100 NoMad hotels “over time” and has about 10 “already in advanced stages of discussion with Sydell,” the hotel giant said in a statement.

Under the deal announced Wednesday, Sydell will design, brand, and manage the NoMad brand while Hilton will lead development. Nomad will join Hilton’s rewards program.

Sydell Group’s NoMad currently has luxury properties in Las Vegas and London. The boutique hotel brand, invented by Ron Burkle and Andrew Zobler in 2012, will fit Hilton’s stated need for an international offering for luxury lifestyle hotels.

The luxury lifestyle category (think boutique style hotels) resonates with guests who want a distinctive set of designs, amenities, and services and owners who want a straightforward and cost-effective concept to replicate and run, Hilton said. 

Hilton said in July it had begun “development work” internally on creating a luxury lifestyle brand. However, it decided to speed up the development process by acquiring an existing brand.

“By pairing an already proven brand concept that’s ready for expansion with the power of Hilton’s commercial engine, we are accelerating our ability to drive growth in the luxury lifestyle segment,” said Chris Silcock, president, global brands and commercial services, Hilton.

NoMad faced financial troubles during the pandemic. Sydell Group had to close two of its NoMad hotels in New York and Los Angeles.

Sydell Group has other hotel concepts, including The Line, Freehand, and The Ned.

The absorption of Sydell Group’s NoMad brand is Hilton’s second hotel brand acquisition, after 16 years without brand acquisitions. Hilton said on March 14 that it planned to spend $210 million to acquire Graduate Hotels, a brand that builds and runs 33 hotels near U.S. and U.K. universities.

Accommodations Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.

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