Peloton will put its bikes in 5,400 Hilton-owned hotel in the US: Troubled pandemic darling expands accessibility to its exercise machines after listing them for sale on Amazon and Dicks Sporting Goods stores
- Hilton and Peloton Interactive announced a partnership where the hotel brand will feature at least one Peloton bike in 5,400 hotels
- A survey of Peloton members indicated 90 percent are more likely to stay at hotels with Peloton bikes
- The Hilton partnership follows deals with Amazon and Dick's Sporting Goods to retail the bikes - which average a price of $1,660
- Peloton shares have fallen 95 percent since reaching an all-time high in 2020
- Founder John Foley, 51, resigned after the company reported a $1.2 billion quarterly loss and a 30 percent drop in revenue
Peloton Interactive will now be featuring its bikes in Hilton hotels, as the exercise equipment brand continues to expand its accessibility to consumers.
The new partnership will provide at least one bike in all of Hilton's 5,400 hotels and a 90-day free trial of the Peloton app to Hilton Honors members. Hotels that already have bikes have the option to add another.
Expansion into Hilton hotels follows two recent Peloton partnerships with Amazon and Dick's Sporting Goods to retail the bikes both in store and online. Bikes average a price of $1,660, with a lowest price of $1,445.
These moves indicate Pelton's desire to grow its customer base, as it recently reported a $1.2 billion quarterly loss and a 30 percent drop in revenue.
A move into Hilton-brand hotels follows two recent surveys by the two companies, which indicate 98 percent of vacationers prioritize wellness on the road and 90 percent of Peloton users said they were more likely to stay at hotels with bikes.
'This unique and exciting partnership with Peloton – a brand so many of our guests know and love – accelerates an important part of that equation, allowing us to enhance the stay with an innovative approach to fitness,' said Matt Schuyler, Hilton's chief brand officer, in a release.
All 5,400 Hilton-brand hotels will now feature at least one Peloton bike, according to a new partnership announced between the two companies
The deal follows a survey indicating travelers don't focus on wellness on the road while Peloton users were more likely to stay at hotels with bikes
Since reaching an all-time high in December 2020, Peloton shares have fallen 95.7 percent as the company failed to continue growth post-pandemic
Betsy Webb, global vice president of Peloton's commercial branch, said she first used a Peloton while staying at a hotel and that she was 'immediately hooked.'
'We love brands that prioritize their customers' wellness and could not be more excited to bring Peloton to Hilton guests nationwide wherever they are on their fitness journey,' Webb said.
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Beginning as a direct-to-consumer brand, Pelton began a shift toward more public retail options after announcing its partnerships with Amazon and Dick's Sporting Goods.
The moves are a result of new CEO Barry McCarthy taking over the brand after co-founder John Foley, 51, resigned from the position after Peloton shares fell 95.7 percent since December 2020.
Foley was succeeded as board chair by Karen Boone, a former executive at Restoration Hardware and a Peloton board member since 2019.
Hisao Kushi and Kevin Cornils, chief legal officer and chief commercial officer, respectively, also left following Foley's resignation.
A decision to partner with Dick's Sporting Goods comes days after Peloton's global marketing lead, Dara Treseder, announced she was leaving the company.
A source told Yahoo Finance that Foley - who along with his wife and other insiders controls close to 60 percent of Peloton's voting shares - may sell his stake in the company after a cooling-off period.
Peloton's recent moves allows CEO and president Barry McCarthy's plan to attract more customers, cut losses and improve cash flow
After the company went public in September 2019, shortly before the COVID-19 pandemic, it reached an all-time high in stock price at $162 in December 2020.
A surge of popularity during the pandemic ensued as public gyms closed and millions began to exercise in their homes.
But the surge was swiftly followed by a collapse in demand - not helped by scandals surrounding safety, with the recall of their treadmills after a child died, and bad publicity from a much-mocked Christmas advert, and Sex and the City's male lead character Mr. Big dying from a heart attack following a Peloton class.
These recent moves by Peloton hope to revitalize growth within the company.
We recognize the importance for our members to maintain their wellness routines while on the road, with data showing over 1.6 million Peloton rides completed globally on Peloton Bikes in hotels in the past year,' Webb said.
'So, we are thrilled to be working with Hilton, allowing us to meet the needs of our current members, while also enabling potential new members to experience Peloton for the first time.”
Peloton's two years of disasters
March 2021: Peloton warns parents to keep children away from its Tread+ treadmills after a six year old child is killed after being pulled underneath one of them
May 2021: Peloton recalls the running machines after reports of at least 72 other injuries emerge. Class action lawsuits against the company are filed
June 2021: Firm is accused of greed after disabling 'Just Run' feature on Tread+ which lets users run for free, instead forcing them to pay a $39 fee. Brought the free option back after an outcry
August 2021: Peloton slashes cost of its entry-level bike by $400 as revenue growth slows
November 2021: Peloton reports sales of its products fell by 17 percent for the most recent quarter, with the smallest gain in subscribers since going public in September 2019. That saw Peloton's market cap tumble by $8 billion, and John Foley lose his billionaire status
December 2021: Mr Big - played by Chris Noth - dies of a heart attack after using a Peloton in the Sex and the City reboot And Just Like That. Shares continue to drop. Days later, Peloton is hailed for producing an advert featuring the revived character joking about the exercise bike. But it is forced to pull the hailed commercial after Noth is hit by multiple claims of sexual assault, which he denies
Firm hit by fresh scandal after John Foley hosts lavish Christmas party for select employees, after annual bash was scrapped for rank-and-file staff
Chris Noth, who plays Mr Big in Sex and the City, dies from a heart attack after using his Peloton
January 2022: Leaked audio reveals plans to fire 41% of sales and marketing teams. Stock price tumbles further after it emerged production of bikes and treadmills would be slowed due to sinking demand.
Calls for Foley to be fired emerge.
The PR gets even worse as another TV character is almost killed off from a heart attack after a Peloton session. Showtime's popular series Billions used the bikes to give Mike Wagner, played by David Costabile, a scare in the season six premiere. He survives, and declared he is not going to die 'like Mr Big'
Mike Wagner, played by David Costabile, is seen in the Season 6 premiere of Showtime’s Billions having a heart attack after riding a Peloton bike
February 2022: Executives at Peloton alleged to have hatched a plan to conceal rust and corrosion on their high-end bikes with a chemical solution.
When staff noticed that paint was flaking off some of the machines last year the company allegedly began using a chemical solution that disguised corrosion on the bikes by 'reacting with the rust to form a black layer', according to the Financial Times.
May 2022: Peloton's stocks plummet nearly 90 percent over the past year, as company executives revealed that it lost a staggering $750 million in the previous quarter due to unsold inventory and mounting costs.
The company lost $757.1 million for the three months of 2022, amounting to about $2.27 per share. And when stripping out nonrecurring items from the equation, a survey by Zacks Investment Research, it lost 98 cents per share - outpacing projections of a per-share loss of 85 cents.
August 2022: Company announces it is slashing 784 jobs, increasing equipment prices, closing retail locations, and requiring employees to return to the office by November, as they try to secure their bottom line.
Peloton reports a huge $1.2 billion loss, its sixth consecutive quarter of reported losses, sending shares tumbling 15 percent.
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