Hilton Worldwide is planning to launch a boutique hotel brand in 2014, to compete with Starwood's W Hotels and Marriott's Edition.
Christopher Nassetta, Hilton Worldwide's CEO, told the Wall Street Journal that the new brand will be "aimed at affluent, young travellers by emphasising style and design".
He said: "It's something we're working on."
The news comes four years after an espionage lawsuit forced Hilton to abandon its Denizen lifestyle brand (see news, April 2009).
Starwood Hotels took legal action alleging Hilton had used stolen documents to develop Denizen after hiring two of its former employees who had worked on its W Hotels brand.
At the time, Hilton was in talks with developers in Abu Dhabi, London, Mumbai and New York about setting up Denizen properties.
The two companies eventually settled out of court and Hilton was banned from entering the boutique hotel market for two years.
That ban expired in January and Hilton is now looking at the lifestyle market again, with an eye to launching its brand next year.
The most recent lifestyle brand launched by a major hoteliers is Moxy by Marriott (see news, March 5).