In the latest bid, in order to maximize income through franchising a new hotel brand has been introduced by Hilton Worldwide Holdings. Since 2009, this is the fifth new hotel brand launched by Hilton Worldwide Holdings, which is the second-largest hotel operator in the world.

The new hotel brand, the Tapestry Collection, will be luxurious hotels, from Hilton. This brand is also placed in the Hilton’s Double- Tree locations. Tapestry properties will be incorporating food service, bar and a gym. However, it may not include convention hall or restaurants.

In order to convert into Tapestry sites, seven hotels have signed letters of intent and the deal with 35 more hotels are underway. According to the statement released by Hilton in January 23, the hotels that have signed letters of intent are located in Nashville, Indianapolis, Chicago, and Tennessee. The first hotel in the Tapestry Collection will be opened for public late by third quarter of 2017. By 2020, the Hilton has planned to convert 50 hotels into the Tapestry Collection.

In December, last year, Hilton converted its real estate and timeshare business into a publicly traded company model. Instead of acquisitions, Hilton is planning to expand its business through franchising and management. In 2016, Hilton launched a low-cost franchised hotels called Tru.

According to an analyst at Morgan Stanley, Thomas Allen, growing franchised hotels is easier than growing managed hotels. “You’re actually branding the building,” he says.

With the new brands, Hilton can expand its prowess in the locations where the hotel chain has its business exist says Allen. The Hilton has expressed that apart from earning through franchising, it may also manage couple of the Tapestry hotels.

Tapestry is in the line of soft brand hotel from that Hilton. It follows Curio that was launched in 2014 by Hilton.

The soft brand hotels are the individual hotels with their own name and image along with a franchiser or the corporate manager. Soft brands hotels are the hotels that have been converted from existing hotel in order to maintain their own identity. However, they are depended on management expertise, frequent-guest program, and a global reservations system. Some of the soft brand hotels are Cosmopolitan in Las Vegas, which is managed by Marriott International, and Boulders Resort and Spa, owned by the Curio brand.

In the next quarter in 2017, 25 percent of Hilton stakes will be owned by HNA Group, a China based group. In the interview with Bloomberg Television, Christopher Nassetta, the CEO of Hilton said the year 2016 was Hilton’s “best year ever.” In the interview, which was taken in January 18, in the World Economic Forum, Davos, Switzerland, Christopher Nassetta said that that business travel is improving. According to the CEO 75 percent of the guests in Hiltons are business travelers.

In a phone interview, the global head of Hilton’s Tapestry and Curio brands, Mark Nogal said that this is all about natural growth. There is a brand new luxurious commercial development found in East Coast Road of Singapore named as The Flow @East Coast.

Currently, Hilton has 14 brands under its wings. In September, when Marriott International took over Starwood Hotels & Resorts Worldwide, Hilton fell to second spot. Marriott International made a deal of US$14 billion ($20 billion) for Starwood Hotels & Resorts. Currently, Marriott International has 30 hotels.

According to an analyst at Morgan Stanley, Thomas Allen, growing franchised hotels is easier than growing managed hotels. “You’re actually branding the building,” he says.

Tapestry is in the line of soft brand hotel from that Hilton. It follows Curio that was launched in 2014 by Hilton.

In a phone interview, the global head of Hilton’s Tapestry and Curio brands, Mark Nogal said that this is all about natural growth.