Hilton and AG Hotels Group Sign 10-Property Spark by Hilton Deal Across UK, Adding 672 Rooms

Hilton (NYSE: HLT) has entered a strategic agreement with UK hotel owner and operator AG Hotels Group to convert 10 existing hotels into Spark by Hilton properties across England and Wales, adding 672 rooms to the brand's UK pipeline. The hotels are expected to open between late 2026 and 2028, spanning Cardiff, Coventry, Derby, Doncaster, Hull, Peterborough, Runcorn, Sunderland, Wakefield and Washington.

The deal, announced Sept. 14, represents a conversion-led, multi-asset expansion for Hilton and a scale branding strategy for AG Hotels Group, which has been building a nationwide portfolio of acquired and repositioned hotel assets across the UK. The agreement also marks Spark by Hilton's first entry into Wales.

Strategic Agreement Brings Spark by Hilton to New UK Markets

The 10-property portfolio will take the Spark by Hilton brand into several markets where Hilton has not previously operated, including Derby, Runcorn, Wakefield and Washington. The hotels are positioned near major employment centres, transport hubs and visitor attractions, targeting demand from business travellers, logistics workers and leisure visitors.

Paul Blackmore, vice president of development for UK & Ireland at Hilton, said the signings reflect the strength of owner demand for the brand's conversion model. "These signings underline the strength of demand for Spark by Hilton we are seeing from owners across the UK," Blackmore said. "With nearly 700 rooms in the pipeline, including the brand's first hotel in Wales, Spark continues to gain momentum as owners recognise the strength of its value proposition and its ability to meet the needs of today's travellers."

Simon Vincent, president of Europe, Middle East & Africa at Hilton, attended the signing ceremony alongside Girish Grover, founder and CEO of AG Hotels Group.

Grover described the agreement as a milestone for AG Hotels Group's growth strategy. "This landmark agreement is closely aligned with AG Hotels Group's mission to create happy, thriving places nationwide and represents an important step in the next phase of our growth," he said. "Our strategy is to build a scaled, high-quality hospitality platform by acquiring, repositioning and investing in well-located hotels across the UK, combining strong operational capability with leading global brands."

Portfolio Breakdown: 10 Properties Across England and Wales

The 10 hotels being converted under the AG Hotels Group agreement span a range of room counts and market types. The largest property in the portfolio is the 100-room Spark by Hilton Derby Station, located between Derby railway station and the city centre, serving demand from aerospace, rail engineering and manufacturing sectors as well as visitors to the nearby Peak District National Park. The property is likely the Stuart Hotel at 119 London Road, Derby, an existing midscale hotel that fits the locational description precisely.

The 99-room Spark by Hilton Peterborough Norman Cross is positioned just off the A1(M), serving one of the UK's busiest logistics and distribution corridors. The 79-room Spark by Hilton Washington Newcastle South is located between Newcastle and Sunderland, targeting industrial and logistics demand, while the 77-room Spark by Hilton Wakefield South sits within Monckton Business Park near the M1 and M62 motorways.

Other properties in the portfolio include the 63-room Spark by Hilton Sunderland Northern Spire Bridge, located near the Stadium of Light and major manufacturing centres in the North East; the 53-room Spark by Hilton Runcorn, adjacent to Runcorn railway station within reach of Liverpool and Manchester; the 51-room Spark by Hilton Cardiff North, providing access to Cardiff's government, business and healthcare sectors as well as Cardiff Castle, Cardiff Bay and Principality Stadium via the A48 and M4 corridor; the 51-room Spark by Hilton Doncaster East, overlooking Doncaster Racecourse in a major distribution and freight corridor; the 51-room Spark by Hilton Hull Central, near the Port of Hull and MKM Stadium; and the 48-room Spark by Hilton Coventry Walsgrave, situated close to University Hospital Coventry & Warwickshire and key business parks in one of the UK's centres for advanced engineering and automotive innovation.

AG Hotels Group's existing portfolio suggests that several of these Spark by Hilton conversions correspond to hotels already operated by the group. The Sunderland property, described by Hilton as near Northern Spire Bridge, aligns with AG's acquisition of a Sunderland hotel in the Castletown district convenient for the A19 and Stadium of Light. The Doncaster property, described as overlooking Doncaster Racecourse, matches AG's marketing of a Doncaster hotel in a major logistics corridor. The Peterborough property aligns with AG's Milestone Hotel in Peterborough, positioned near the A1(M). The Coventry property corresponds to AG's Crossway Hotel in the Walsgrave submarket. The Cardiff property aligns with AG's Beacon Hotel in Cardiff.

Scotland Entry and Broader Spark by Hilton Expansion

Separately from the AG Hotels Group agreement, Hilton has also signed a deal with SMAR Hotels Ltd to bring Scotland's first Spark by Hilton to Dunfermline, located approximately 17 miles northwest of Edinburgh. The 53-room hotel will undergo a comprehensive refurbishment before opening in late 2026, offering dining spaces, meeting facilities and guest parking.

Spark by Hilton, launched in 2023, now has more than 275 open hotels worldwide, with more than 200 properties in the development pipeline. The brand has been expanding across Europe and the Middle East, with recent announcements covering growth in Italy and Spain and the brand's debut in Saudi Arabia.

The brand's conversion-friendly model — which allows existing hotels to reposition under the Hilton name while accessing the company's commercial platform and Hilton Honors loyalty programme, which has more than 260 million members — has driven owner interest in markets where new-build development costs and timelines present barriers. UK hotel owners have increasingly looked to reposition existing assets under globally recognised brands as room rates and revenue per available room have risen across regional markets, making brand affiliation more commercially attractive.

AG Hotels Group's Growth Platform

AG Hotels Group, led by founder and CEO Girish Grover, has been assembling a nationwide UK portfolio through acquisitions, conversions and brand partnerships. The Hilton agreement represents the group's most significant brand partnership to date in terms of scale, covering 10 properties across diverse regional markets.

Grover indicated the group intends to continue expanding beyond the current agreement. "We see significant opportunity to grow our portfolio through further acquisitions, conversions and strategic partnerships, and we look forward to working with Hilton as we continue to expand," he said.

The 10-property Spark by Hilton pipeline adds to Hilton's broader UK development activity. Hilton operates more than 9,400 properties totalling nearly 1.4 million rooms across 144 countries and territories.

Sources

Hilton Stories: Hilton Signs 10 Spark by Hilton Hotels as UK Growth Gathers Pace