Hilton hotel category changes effective 13 July 2016


Earlier this week, we wrote about Hyatt's hotel category changes. However, here's something we didn't write about. Nearly two weeks, Hilton made revisions to some of their hotel categories. And the reason we didn't write about it (at the time, at least), was that there was no impact for India. However, it is nonetheless a change in the area of our hobby of points and miles, and so we thought it best to provide readers an update on these revisions, which are effective 13 July 2016.


First, the changes

There are a total of 20 hotels going up in category, 19 of which are based in the US and 1 in Turkey.


I'm surprised to see many Homewood Suites, Hampton Inn and Double Tree going up in categories – those are the ones that are primarily Hilton’s no-frills properties. Making them more expensive could make users move to other hotel chains that are more competitive.

And there are 13 hotels going down in category, spread across Malaysia, the UK and the USA.


As is clear from the above, no India hotels are affected. However, there are also new hotels that have entered the Hilton portfolio recently, which includes the Conrad Pune in India as a Category 4 hotel. These hotels have now been formally categorised, and can be viewed here.

Conrad Centennial Singapore

Hilton HHonors has changed the way they make these changes

Back in 2014, Hilton moved to a more dynamic way of making updates to its redemption rates, making adjustments to their hotel categories on a quarterly basis. These aren't mailed to users, but are instead posted on their website, available for viewing at all times. 

The other thing they did, was to set a range for hotels in category 4 and upwards. Here's a look at the Hilton redemption rates.


What this means, is that the points required for award nights at category 4 and above can change dynamically, without requiring a category change announcement. This explains why there are so few Hilton hotels changing categories these days. Put differently, these are relatively minor adjustments to better reflect their demand and supply situation. 

Keep in mind, this is not the same as devaluation – that would be Hilton changing the points requirement for one or more categories...something they did in 2013 which massively devalued the HHonors program. 

Conclusion

One should be too worried about these changes – the 33 properties undergoing changes is less than 1% of Hilton's overall portfolio of more than 4,500 hotels. However, it is important to note the points range for category 4 and upwards, which can be quite significant.

- Sam

Comments

Popular posts from this blog

Review: Le Meridien Etoile, Paris

Hotel review: Holiday Inn Singapore Atrium

The week that was - 23 October 2016