Hilton Tests a New Hotel Model by Franchising Yotel Without Owning the Brand

Hilton signed a franchise agreement with Yotel that adds nearly 5,700 rooms to its portfolio without acquiring, designing, or operating the brand. It is the first time Hilton has offered hotels under a name it does not own.

The deal represents a shift toward what industry analysts are calling a "platform model," where major hotel companies serve as distribution and loyalty platforms for independent brands. Yotel properties will appear in Hilton's booking system and honor Hilton Honors points, but retain their own design identity and management structure.

The move targets modern business travelers who favor Yotel's space-efficient, tech-forward cabin rooms — a segment Hilton's existing brands do not fully address.

Hilton is also aggressively expanding LivSmart Studios, a long-stay brand aimed at traveling nurses, relocating families, and extended-business travelers. Properties are opening in smaller markets like Tullahoma, Tennessee, and Kokomo, Indiana.

The franchise play comes as Hilton narrows the gap with Marriott for the title of world's largest hotel company, growing its pipeline while keeping capital commitments light through its asset-light model.