Thailand and Vietnam are crucial destinations for Hilton hotels in Southeast Asia, as the company plans to double its size in the region over five years based on robust tourism and growing economies.
Alexandra Murray, vice-president and regional head of Southeast Asia at Hilton, said the region is promising because of long-term growth prospects.
Hilton has 59 hotels featuring seven brands in Southeast Asia, and another 86 properties in the pipeline. Ms Murray said a key driver is the growing middle class in Asia, as the continent is expected to represent 50% of global consumption by 2040.
Both international and domestic travel have been propelling Thailand and the region, as there is healthy demand for hotels and increasing spending by travellers across Southeast Asia, she said.
For Hilton, Thailand ranks No.2 in the region with 13 hotels in operation and 21 in the pipeline, said Ms Murray.
This year, Hilton's Thai properties recorded strong occupancy and daily room rates, both for city hotels and resorts, thanks to the resumption of domestic travellers, foreign tourists, and meeting and incentive groups, she said.
Many investors are keen to develop hotels in key cities, such as Bangkok, Pattaya and Chiang Mai, said Ms Murray.
Discussions between investors and Hilton also include less-explored parts of Thailand, she said.
Of overall hospitality industry in the region, excluding China, Bangkok has the largest number of hotels in the pipeline, while Phuket ranked the fourth.
Hilton Garden Inn Rayong is scheduled to open this week, followed by Hilton Garden Inn Bangkok Riverside by year-end, while KROMO Bangkok, Curio Collection by Hilton is slated for 2025.
Ms Murray said Vietnam is also a rising destination where Hilton plans to grow its portfolio over the next five years, as the country has untapped potential to attract travellers seeking new experiences.
Vietnam's large young population could also become travellers, as Hilton has five hotels in Vietnam with 14 in the pipeline.
She said the company will use its various brands to cater to different demand in the region.
Ms Murray said new hotel investments will continue despite global economic challenges, as investors have witnessed how fast hospitality recovered from the pandemic. She said Hilton plans to prioritise regionally its Hilton Garden Inn brand, equivalent to a four-star hotel, which is suitable for both major and secondary locations.
