National Diploma in Business L 6
Unit Standard- 9685
Topic: HILTON HOTELS Submitted by: Id: Submitted to: Philip Roy
Table of content
1. Introduction
2. History
3. Body of report
4. Swot
5. Conclusion
6. References
Introduction
Hilton Hotels & Resorts (formerly known as Hilton Hotels) is an international chain of full-service hotels and resorts founded by Conrad Hilton and now owned by Hilton Worldwide. Hilton hotels are owned by, managed by, or franchised to independent operators by Hilton Worldwide. Hilton Hotels became the first coast-to-coast hotel chain of the United States in 1943. As of 2010, there are now over 540 Hilton branded hotels across the world in 76 countries across six continents. The company places marketing emphasis on business travel, but also owns and operates a number of resorts and leisure-oriented hotels in popular vacation destinations around the world. The company's Hilton HHonors guest loyalty program is one of the largest of its kind and has numerous partnerships with airlines and car rental companies. The U.S. branch of Hilton hotels was reunited with the international properties after more than 40 years in February 2006, when United States-based Hilton Hotels Corporation purchased the hotels division of United Kingdom-based Hilton Group plc, which had acquired Hilton's International operations in 1987 (the companies had been separated originally in 1964)
History
Conrad Hilton founded the original company in 1919 with one hotel in Cisco, Texas. The Hotel's name is Mobley Hotel. The Hotels Statler Company was acquired in 1954 for $111,000,000 in what was then the world's most expensive real estate transaction. The company separated its international operations into a separate traded company on December 1, 1964, known as Hilton International Co.. In 1967 Trans World Corp., the holding company for Trans World Airlines, acquired the separated company. In 1986 it was sold to UAL Corp., the holding company for United Airlines, who became Allegis Corp. in an attempt to re-incarnate itself as a full service travel company encompassing Westin Hotels and Hertz rental cars in addition to Hilton International and United Airlines. In 1987 after a corporate putsch, the renamed UAL Corp. sold Hilton International to Ladbroke Group plc, a British leisure and gambling company, which in May 1999 adopted the name Hilton Group plc.
The former Hilton Hotels Corporation headquarters in Beverly Hills As a result, there were two separate, fully independent companies operating hotels under the Hilton name. Those Hilton Hotels outside the US were, until recently, styled as Hilton International hotels. In addition, for many years hotels run by the Hilton Group in the US were called Vista International Hotels, while hotels operated by the American arm of Hilton outside the US were named Conrad Hotels. The Vista chain has been phased out, while Conrad is now restyled as one of the luxury brands of Hilton (along with The Waldorf-Astoria Collection) and operates hotels within the US, as well as abroad. To minimize consumer confusion, the American and British Hilton companies, from the 1990s onwards, had a joint marketing agreement under which they shared the same logos, promoted each others' brands and maintained joint reservation systems. In 1971, Hilton acquired International Leisure Company, including the Las Vegas Hilton and Flamingo Hilton. In 1998, Hilton spun off its gaming operations into a separate, publicly held company called Caesars Entertainment (formerly Park Place Entertainment). In 1999, Hilton acquired Promus Hotel Corporation, which included the Doubletree, Red Lion, Embassy Suites, Hampton Inn, & Homewood Suites brands. In 2001, Hilton agreed to sell Red Lion to WestCoast Hospitality.
HHC was granted the naming rights to the George R. Brown Convention Center in late 2003. The Hilton Americas in Downtown Houston, Texas, is connected to the convention center. On December 29, 2005, Hilton Hotels Corporation agreed to re-acquire the Hilton International chain from its British owner, Hilton Group plc, for GBP 3.3 billion (or $5.71 billion). As well as bringing the two Hilton companies back together as a single entity, this deal also included Hilton plc properties operating as Conrad Hotels, Scandic Hotels and LivingWell Health Clubs. On February 23, 2006, the deal closed, making Hilton Hotels the world's fifth largest hotel operator in number of rooms. Hilton Group PLC (headquartered in the UK) then renamed itself Ladbrokes plc. On March 1, 2007, Scandic Hotels was sold to EQT V Group. On July 3, 2007, Hilton Hotels Corp. agreed to an all-cash buyout from The Blackstone Group LP in a $26 billion (including debt) deal that would make Blackstone the world's largest hotel owner. The deal was the culmination of a year of on and off discussions with Blackstone. The private equity group said it would combine cash from its real estate and corporate private equity funds to buy all outstanding Hilton shares for $47.50 each, a 32 percent premium over the July 3 closing stock price. In October 2007, Christopher J. Nassetta was appointed President and Chief Executive Officer of Hilton. In February 2009, Hilton Hotels Corp., announced that its headquarters were moving from its three buildings on Civic Center Drive in Beverly Hills to the lower cost Fairfax County, Virginia, located between Washington, D.C. and Dulles International Airport. Just across the Potomac River is Montgomery County, Maryland, home to a number of Hilton's competitors including Marriott International, Ritz-Carlton, Host Hotels & Resorts, and Choice Hotels, and was also considered for the relocation along with Washington. The move also put management closer to its overseas operations in Europe. While Blackstone saw an opportunity to streamline the company and push Hilton's expansion overseas when Blackstone pursued Hilton in 2006 and 2007, the buyout saddled the company with $20 billion of debt just as the economy was turning down. The debt had very liberal terms, so there was no danger of default, but when travel slowed, the company suffered. In April 2010, Hilton and Blackstone restructured the
debt. Blackstone invested a further $800 million of equity and the debt was reduced to $16 billion.
Body of Report
Brands Luxury
Conrad Hotels (Actual: Conrad Hotels & Resorts) Waldorf Astoria Hotels and Resorts
Full Service
Hilton Hotels & Resorts Doubletree (Actual: Doubletree by Hilton) Embassy Suites
Select Service
Hilton Garden Inn Denizen Hotels (Defunct)
Limited Service
Hampton Inn Hampton Inn & Suites
Extended Stay Suites
Homewood Suites by Hilton Home2 Suites by Hilton
Timeshare
Hilton Grand Vacations
Franchising
Many of Hilton's properties are franchised to independent operators and companies. This business practice has proven successful in rapidly expanding the various Hilton brands to markets all over the United States. Franchisors must follow strict brand standards in order to maintain a licensing agreement with Hilton Worldwide. The Hampton Inn brand is virtually 100% franchised with the minor exception of a few properties that are corporate managed for various reasons. All franchised hotels are regularly inspected by a Quality Assurance Team to enforce brand standards and consistency. The practice of franchising is popular within the Hospitality industry among most major hotel chains, especially among smaller brands with a lare amount of locations that are not feasible to be each corporate owned and managed by the company. Competitor companies such as Marriott International and Starwood follow a similar business model that focuses on franchising as a rapid expansion method. Most of Hilton's flagship properties, airport properties, and largest resorts however are corporate managed.
Hilton HHonors
Hilton HHonors is Hilton's guest loyalty program in which frequent guests can accumulate points and airline miles by staying with the various Hilton family of brands. The Hilton Honors program is one of the largest programs of its type and has partnerships with most major airlines where guests can "Double Dip" and accumulate both points and airlines miles simultaneously with their hotel stay. Similar to frequent flyer programs there are various tiers of membership which guests can reach depending on the amount of stays and points accumulated annually, the higher the tier the more benefits members receive. The membership tiers are as follows:
Blue Silver VIP Gold VIP Diamond VIP
Diamond VIP is the highest tier level, these members receive benefits such as access to the Executive Level lounge at Hilton Hotels, Guaranteed 48-hour reservations, a dedicated "Diamond VIP Desk" which members can call for priority reservations and
travel planning, a dedicated VIP check in line at larger hotels, best available room preassignments, and special in-hotel amenities such as room upgrades and arrival amenities.
Strengths
Hilton Hotel Corporation (HHC) is a well established organization and industry leader in the hotel, hospitality and gaming industry HHC is well diversified across the industry with hotels in the high end, business and mid-priced classes in their product mix HHC also possesses solid integration features such as owning the companies that manufacture its furniture and has invested in online reservation travel enterprises
Weaknesses
HHC may be two narrowly focused making it vulnerable to a downturn in the global economy and other world-wide catastrophes that could limit global travel such as the bird-flu and a significant terrorist strike HHC may be vulnerable to workers strikes and crack down on undocumented workers in the U.S. Most of its holdings are in the U.S.
Opportunities
HHC should offer an array of distinctive and specialized services to the high end guests and high rollers such as Wedding planning & hosting Spas that specialize in personal services Personal trainers HHC should look to expand into or acquire a cruise line A cruise ship is little more than a hotel that floats this would essentially match what it currently does with its leased properties
Gaming activities would escape regulation, etc. Take advantage of emerging markets, especially with business class and midpriced markets
Threats
HHC must be careful not overextend its efforts to mix entertainment and gaming Also the extension of credit and other side effects of gaming can slowly but surely nibble away profits September 11th was a major blow to the hotel industry. A similar event could result in another down turn.
Sales of history
Conclusion
According to my opinion, Hilton hotels are one of the biggest hotels in the world. It have many hotels in different countries, they provide best and luxury service to their customer. They have every type of food and living accessories in their hotels. the share prices of the company are very high because their revenue is $8.162 billion. They have strong command in hotel industry.
References
http://en.wikipedia.org/wiki/Hilton_Hotels_%26_Resorts http://en.wikipedia.org/wiki/Hilton_Worldwide http://phx.corporate-ir.net/phoenix.zhtml?c=88577&p=irol-reportsannual_pf
