Yahoo Finance Peloton Signs Deal to Put Fitness Bikes in Hilton’s 5,400 US Hotels
(Bloomberg) -- Fans of Peloton Interactive Inc. will have a new place to ride the company’s workout bikes: Hilton Worldwide Holdings Inc.’s 5,400 hotels in the US.
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The two companies announced Monday that Hilton will be the first chain to offer Peloton Bikes across all of its US branded hotels. The companies also said that members of the Hilton Honors rewards program will get a 90-day free trial to the digital Peloton app and $100 off a Bike, Bike+ or Tread purchase through Jan. 1. The standard Peloton app free trial is 30 days.
Peloton said about 300 Hilton hotels already have the fitness company’s equipment, but those were purchased by the individual property operators rather than the hotel company itself. Data show that 90% of Peloton’s members say they are more likely to stay at hotels with Peloton equipment and 1.6 million Peloton rides occurred at hotels over the past year, the New York-based fitness company said.
The companies didn’t disclose financial terms, but said the deal will include at least one standard Peloton Bike per hotel fitness center and that the rollout will start in the coming weeks. Peloton shares rose as much as 2.9% during trading Monday morning.
As part of an effort to turn around a company that has seen its stock price fall about 80% in 2022, Peloton executives have recently enacted a series of distribution deals. Last month, the company started selling its bikes through Amazon.com Inc.’s online store and last week it announced a partnership with retailer Dick’s Sporting Goods Inc.
Peloton has recently attempted to cut costs by outsourcing all manufacturing and distribution, while also reducing its in-house customer service teams. The company also plans to shutter most of its retail outlets. Chief Executive Officer Barry McCarthy has pushed the company to generate more revenue, saying that “we simply must become self-sustaining on a cash flow basis.”
(Updates with shares in the fourth paragraph.)
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