Al Habtoor Palace Dubai will no longer be part of Hilton’s LXR brand

Al Habtoor Palace Dubai (Source)

Effective May 1, 2024, Al Habtoor Palace Dubai has separated from the Hilton LXR brand and become an independent hotel. This 235-room property joined Hilton LXR in 2018, a brand known for its independent luxury hotels within Hilton’s portfolio.

Notably, Al Habtoor Palace was the inaugural property for the LXR brand, setting the stage for other hotels to transition smoothly into the brand. It's surprising to see the hotel leave the brand just six years later.

Background on Al Habtoor Palace and Al Habtoor City

Al Habtoor Palace is part of the larger Al Habtoor City development. Here’s some context:

• The hotel originally opened in 2015 as the St. Regis Dubai Al Habtoor City before rebranding.

• The complex also includes two other hotels, initially branded as the W Hotel Al Habtoor City and the Westin Al Habtoor City. These were later rebranded as the V Hotel Al Habtoor City, Curio Collection by Hilton, and the Hilton Al Habtoor City.

• The V Hotel and Hilton Al Habtoor City remain within the Hilton portfolio, ensuring a diverse range of offerings to meet all guests' needs.

Al Habtoor Palace Goes Independent

Operating as an independent hotel in Dubai is challenging due to the highly competitive hotel market, where nearly every global brand is represented, and many have multiple properties.

Al Habtoor City is owned by Al Habtoor Group, which has a history of taking properties independent. For example, the Al Habtoor Polo Resort also initially opened as a St. Regis before going independent.

Royal Suite at Al Habtoor Palace Dubai (Source)

Implications and Speculations

It’s intriguing to consider the reasoning behind this move. Being part of a major hotel group and its loyalty program can be advantageous in such a competitive market. Perhaps the owners weren't seeing the expected business benefits from their association with Hilton. Although they avoid the fees associated with a major brand, they may face higher distribution costs from relying more on online travel agencies.

Curiously, the owners are keeping the two other hotels within the Hilton portfolio but not the premium property. This raises questions about whether Hilton’s participation is more effective for these hotels or if they are simply bound by contractual agreements.

Conclusion

Al Habtoor Palace Dubai has now become an independent hotel, after previously serving as the flagship for Hilton’s LXR brand and before that, as a St. Regis property. This decision follows a pattern for Al Habtoor Group, raising interesting questions about the economic considerations behind such moves.

This information was first published on onemileatatime.com