Ever since one of my first posts, I’ve been waiting for the day that Hilton Hotels (now known as The Hilton Group) will create a boutique hotel brand. It was even one of my predictions for 2008. They are the largest hotel brand in the world without a boutique brand, and its clearly noticable. Brands such as W from Starwood, and Edition from Marriott are stealing the spotlight (Even though Edition hasnt opened one location yet) and boutique companies like Kimpton, Thompson & Morgans are really starting to steal the show from the stalwarts.

As I reported earlier today on HotelChatter, Ross Klein left Starwood Hotels last Friday. I’ve heard rumblings that he was unhappy – but I personally had no idea. I was able to meet him last year in November and he looked like he was having the time of his life and was completely with the brand and Starwood. His right hand man (who I also met for a brief second) also left with him – to go to Hilton!

The Wall Street Journal filled us in on a little more details as to what was going on – and FINALLY, it seems as though Hilton will be creating a boutique brand and it looks as though Ross will be heading the team that creates the brand.

From the article in the WSJ it sounds as though the intial hotels will all be conversions from Blackstone’s LXR Resorts hotels, of which 44 are due to be converted from LXR Resorts to a Hilton Brand, 12 of those are to be existing Hilton brands, the other 32 could be the new Hilton boutique brand. I checked out LXR’s website, and I don’t see 44 hotels under the LXR brand, so we’ll see what ends up happening, but from the outset, it sounds as though the LXR Resorts brand will disappear (at least in its current iteration) and be mainly rebranded as Hilton’s boutique brand.

There really is no official word from Hilton (yet), but there is a large hotel investment conference going on in NYC this morning and tomorrow, so its a good possibility that it will be announced there.

If its true that the new boutique brand will be launching with 34 locations throughout the world – that’s one heck of a launch for a new brand! It will quickly launch Hilton into the largest operator of boutique hotels from the major hotel chains (although Starwood’s W will once again quickly eclipse, as they have 75 hotels opened or opening in the next 5 years).

Although I’m a big fan of Starwood, and especially W Hotels, I’m glad to see that Hilton has finally joined the bandwagon and is going to be opening a boutique hotel brand. I hate to admit it, but Starwood lost a great leader with the resignation of Ross Klein, and I hope that they can pick up the pieces and continue on. Ross brought alot to Starwood, and the way you see W Hotels today – can be traced back to Ross. Barry Sternlicht created it and set the foundation, Ross continued and built up.

We’ll now have to see what Starwood’s Chief Branding Officer is all about as he took over Ross’s position.

andrew@alconic-inc.com