With Small Luxury Hotels of the World's new loyalty partnership now live on Hilton's distribution channels and booking platforms, SLH Chief Operating Officer Richard Hyde believes his company's guests and owners are poised to benefit.
Hilton officials announced Tuesday morning that the partnership, first announced in February, was now live with hundreds of SLH luxury and boutique properties now available to book on Hilton.com, the Hilton Honors app and Hilton reservation centers. Honors members are able to redeem points at SLH properties.
The companies have spent the last few months integrating their reservations systems, Hyde told HNN. Initially, 300 out of SLH’s 570 member properties will participate. Another 100 will be added by the middle of August with more to join later. The network has hotels in more than 90 countries.
Customers will see SLH as one of Hilton’s luxury brands alongside Conrad, Waldorf Astoria, LXR Hotels & Resorts and Signia by Hilton, Hyde said. A search for luxury hotels in Rome, for instance, would display multiple Hilton properties as well as SLH member properties.
SLH had a similar arrangement with Hyatt for a number of years, but when Hyatt bought the Mr and Mrs Smith brand — with a similar network to that of SLH — that arrangement was ended. Hyde said that the benefit for SLH members joining Hilton is tremendous exposure, saying “to be displayed on Hilton’s powerful channels is hugely beneficial. Our hotels can keep their independence while gaining that exposure.”
Hilton loyalty program members will have 400 additional luxury hotel choices available worldwide, Hyde said. Hilton hotels will not be displayed on SLH channels.
In a statement, Chris Silcock, Hilton's president of global brands and commercial services, said: “The hundreds of independently minded properties are highly complementary to our renowned luxury portfolio and support Hilton’s ongoing efforts to expand and create distinct, localized travel experiences for our guests.” Hilton Honors members can elevate their stay at participating SLH hotels with exclusive benefits, including earning and redeeming Points, free Wi-Fi and a guaranteed member discount. Gold and diamond members also enjoy space-available room upgrades and continental breakfast for up to two guests.
When a customer makes a booking for an SLH property on a Hilton channel, SLH will pay a commission to Hilton, Hyde said. For rewards stays, compensation will be made to the hotel. There is no participation fee.
“This is a straightforward partnership,” he said, adding Hilton does not have any other arrangements with a boutique hotel group.
As for SLH itself, Hyde said the company had its best year ever in 2023 with revenues up 38% and bookings up 30% — reflecting higher nightly room rates. He said 2024 is looking even better than 2023 although with a smaller percentage increase.
Hyde said SLH differentiates itself in the size of its hotels — which average 48 rooms with a cap of 200. The majority are family-owned, which is one reason members join. The smallest member is a one-villa property in Fiji, and there are several in the U.S. with eight rooms.
“We have regional meetings, and our owners love to meet with like-minded people to share best practices and to gossip,” he said.
While they are all small, SLH properties are otherwise very diverse, Hyde said. Some focus on wellness, while others focus on food and beverage. Recently, the company has ventured beyond traditional hotels and now includes a Galapagos vessel and a glamping company in the U.S. among its members. That trend toward “non-traditional” lodging will continue to grow, Hyde said.
Geographically, Small Luxury Hotels of the World is rapidly expanding in Asia with 20 locations now in China and 15 in Japan. Hyde said Europe remains the core destination with Italy having the most SLH members at 81. He added the company would love to “fill in the gaps,” with more properties in the U.S., Africa, eastern Europe and elsewhere.
While Hyde is the chief operating officer, he effectively is the top executive since there is no CEO. He said the chairman of the board, Shaun Leleu, is the liaison with owners Daniel and Jennica Shamoon Arazi — siblings who own 100% of the company.
“They understand hotels,” Hyde said, “because they own 10 or 11 of them, five or six of which are members of SLH. So there is no need for a CEO.”
Members pay an annual fee and a commission per booking. Every SLH hotel is inspected annually by a team of 120 volunteer inspectors who include CEOs, judges and military officers, Hyde said. They are given two nights free and need to fill out a 790-point form. If a hotel fails, it is given another inspection. A second failure means expulsion.
While he does not want to limit growth, because of high standards and other criteria, “we’re lucky if we add 20 members a year net” so excess growth is not a worry, Hyde said.
“We just want to be in great places like Hawaii and Boston, so we can fill in those gaps," he said.