Deal to result in 25 new properties and launch Hilton into the UK's economy hotel sector, with its Hampton by Hilton Brand -

The company has signed a letter of understanding for a major development alliance with the experienced hotel franchise owner and operator, Somerston Hotels UK Limited -- with the intention to introduce an additional 25 new hotels comprising 3000 rooms across the UK in the next five years.

This represents the second major U.K. hotel franchise announcement with a leading property partner in the last month for Hilton, as the company's international development strategy gains significant momentum.

The agreement is expected to result in the addition of at least 25 Hampton by Hilton properties -- Hilton's "new kind of economy hotel" brand that focuses on consistency and comfort for business and leisure travellers alike.

Phil Cordell, Senior Vice President of Brand Management for Hampton by Hilton said: "We look forward to debuting Hampton by Hilton in the UK and establishing a "new kind of economy hotel" with our key brand attributes such as complimentary high-speed Internet access, complimentary hot breakfast and our 100% Satisfaction Guarantee, which have made Hampton by Hilton the preferred economy hotel choice for business and leisure travellers throughout the United States."

Somerston, a privately owned company, is looking to expand its existing interests in the economy hotel sector. It currently owns and operates 34 UK hotels across three international brands and totals in excess of 4,000 rooms.^(a)

Chairman of Somerston Hotels, Christopher Budden, said: "There are still tremendous growth opportunities within the economy hotel sector and we are excited by the prospect of further developing our portfolio with Hilton. With our UK franchise expertise and the new Hampton by Hilton brand, we are confident that we can make a huge success of this alliance."

Ian Carter, Chief Executive of Hilton's International Operations said: "The deal with Somerston and the introduction of the Hampton by Hilton brand into the UK represents a significant first move into the economy sector.

In the last two weeks we have announced significant alliances with Shiva and now with Somerston, and these alliances are indicative of our ambition for growth and market leadership across a number of market segments.

Specifically, we have a target of doubling our UK estate from 75 to 150 hotels in ten years and with the interest and support of leading property developers and franchise operators we are well on the way to achieving this."