Hilton Signs Franchise Agreement With Arte Hoteles for Outset Collection's EMEA Debut in Madrid

Hilton has signed a franchise agreement with Arte Hoteles for Casa Verbena Madrid, Outset Collection by Hilton, marking the first property under the Outset Collection banner in Europe, the Middle East and Africa. The 45-room hotel, located on Calle de Preciados in the heart of Madrid's historic centre, is expected to open in late 2026.

A Strategic EMEA Debut for Outset Collection by Hilton

Outset Collection by Hilton launched in October 2025 as Hilton's 25th brand and eighth lifestyle brand, designed specifically for independent hotels with strong local narratives and conversion potential. The brand targets upscale independent properties that seek to preserve their individual character while accessing Hilton's global distribution network and loyalty platform. By early 2026, more than 60 Outset Collection hotels were under development, with long-term potential identified at more than 500 hotels in the U.S. and Canada alone. Casa Verbena Madrid now extends that pipeline into EMEA for the first time.

Simon Vincent, president of EMEA at Hilton, said the signing reflects growing demand for experience-led travel. "This signing reflects the strong momentum behind our portfolio of Collection brands, which continues to expand in response to growing demand for distinctive, experience-led stays," Vincent said. "As one of Europe's most dynamic travel destinations, Madrid offers the ideal setting for Outset Collection, a brand that celebrates the individual story of each property and its connection to the local area. The collection gives owners the flexibility to showcase the unique character of their hotels, while benefiting from Hilton's scale, reach and commercial platform."

Property Details: Casa Verbena Madrid

Casa Verbena Madrid, Outset Collection by Hilton will offer 45 modern guest rooms with upscale finishes and design cues drawn from the surrounding city. The property will include a reception space and a breakfast area. Its location on Calle de Preciados — Madrid's core pedestrian retail corridor in the Sol and Gran Vía submarket — places it within walking distance of Puerta del Sol, Plaza Mayor and Gran Vía, as well as a range of cultural landmarks, shops and dining destinations.

The property reflects Outset Collection's positioning around boutique-scale hotels with what the brand describes as "story, character and individuality." The franchise structure allows Arte Hoteles to retain operational identity while connecting to Hilton's commercial platform and its Hilton Honors loyalty program, which counts more than 260 million members.

Álvaro Mazaheri, managing director of Arte Hoteles, said the partnership pairs local expertise with global reach. "We are proud to partner with Hilton to introduce Outset Collection by Hilton to Madrid," Mazaheri said. "This project represents an exciting opportunity to pair our local expertise with Hilton's global platform, creating a hotel with story, character and individuality that reflects the energy of the city, while retaining its own distinctive identity."

Hilton's Expanding Spanish Portfolio

Casa Verbena Madrid joins a growing roster of Hilton-affiliated properties in Spain. Recent and upcoming additions to Hilton's Spanish portfolio include Hotel Palacio Bellas Artes San Sebastián, Curio Collection by Hilton, as well as the forthcoming DoubleTree by Hilton Madrid Príncipe de Vergara and Cuber House Valencia, Curio Collection by Hilton.

Hilton currently operates more than 9,400 properties totaling nearly 1.4 million rooms across 144 countries and territories. The company reported 6.7% net unit growth in 2025 and a record approximately 520,000 rooms under development globally, with conversion-friendly brands such as Outset Collection serving as a key driver of that pipeline.

Market Context: Conversion Brands and Independent Hospitality

The Casa Verbena Madrid signing illustrates a broader industry trend in which major hotel companies pursue growth through conversion agreements with independent owners rather than ground-up development. Conversion deals typically require lower capital expenditure and faster time-to-opening than new builds, making them attractive in established urban markets where land and construction costs are elevated. For independent hotel owners, affiliation with a global brand provides access to centralized reservations, loyalty traffic and marketing infrastructure without requiring a full brand overhaul.

For Outset Collection specifically, the EMEA debut in Madrid provides a proof of concept for European independent owners considering affiliation with a global chain. Spain, Italy, France and other EMEA markets contain significant concentrations of heritage and character-driven hotel assets that fit the conversion profile Outset Collection is designed to address. The Casa Verbena Madrid signing positions Hilton and Arte Hoteles to demonstrate that model in one of Europe's most visited capital cities.

Sources

Hilton Stories — Outset Collection by Hilton Set for EMEA Debut (September 16, 2026)