As of December 31, 2023, the company's portfolio includes 7,530 properties (including timeshare properties) with 1,182,937 rooms in 118 countries and territories. Hilton owns or leases 51 properties, manages 800 properties, and franchises out 6,679 properties to independent franchisees or companies.[5]
On December 12, 2013, Hilton again became a public company, raising an estimated $2.35 billion in its second IPO.[6] At the time, Blackstone Inc. held a 45.8 percent stake in the company.[7] In October 2016, China's HNA Group agreed to acquire a 25 percent equity interest in Hilton from Blackstone. The transaction was expected to close in the first quarter of 2017.[8][9][10] Hilton's largest stockholders were until mid-2018 HNA Group, Blackstone, and Wellington Management Company, which as of March 2017 owned 25%, 15.2%, and 6.7% of Hilton common stock respectively.[11]
In 1919, Conrad Hilton purchased his first hotel, the 40-room Mobley Hotel in Cisco, Texas, and bought additional Texas hotels as the years passed.[15]
In 1925, the Dallas Hilton became the first hotel to use the Hilton name.[15] In 1927, Hilton expanded to Waco, Texas,[16] where he opened the first hotel with air-conditioning in public areas and cold running water.[17][18][19]
In 1943, Hilton assumed management of the Roosevelt Hotel and purchased the Plaza Hotel, both well-established high-end luxury hotels less than a mile apart in New York City's Midtown Manhattan neighborhood. With this pair of acquisitions, Hilton established the first hospitality company to span the contiguous United States.[20]
The company was incorporated in 1946 as the Hilton Hotels Corporation and subsequently began public trading of shares on the New York Stock Exchange.[21][22][23] In 1947, the Roosevelt Hotel became the first hotel in the world to have televisions in its rooms.[20]
In 1947, Hilton assumed management of the Palacio Hilton hotel in Chihuahua, Mexico, which became the chain's first international property. That same year, they assumed management of four hotels on the island of Bermuda.[24]
In 1953, Hilton opened its first hotel in Europe, the Castellana Hilton in Madrid, Spain.[30]
The Hotels Statler Company was acquired in 1954 for $111 million in what was then the world's most expensive real estate transaction.[31] One year later, Hilton created the world's first central reservations office, titled "HILCRON". The reservations team in 1955 consisted of eight members on staff booking reservations for any of Hilton's then 28 hotels. Reservations agents used the "availability board" to track records. The chalkboard measured 30 feet (9.1m) by 6 feet (1.8m) and allowed HILCRON to make over 6,000 reservations in 1955.[32] Bookings could be made for any Hilton via telephone, telegram, or Teletype.
Later in 1955, Hilton launched a program to ensure every hotel room would include air conditioning.[33]
International expansion continued in this era. In 1957, Hilton assumed management of its first hotel in Central America, the El Panama Hilton in Panama City, Panama. In 1958, Hilton opened its first hotel in Canada, The Queen Elizabeth in Montreal, Quebec.[36] In 1959, Hilton opened its first hotel in Africa, the Nile Hilton in Cairo, Egypt.[37] In 1960, Hilton opened its first hotel in Oceania, the Chevron Hilton in Sydney, Australia.[38] In 1961, Hilton assumed management of its first hotel in South America, the Hotel Carrera in Santiago, Chile. In 1963, Hilton opened its first hotels in Asia, the Hong Kong Hilton and the Tokyo Hilton, and its first hotel in the Middle East, the Royal Tehran Hilton.[39]
In 1965, Hilton launched Lady Hilton, the first hotel concept created specifically for women guests.[40] To appeal to female travelers, many properties offered floors occupied by only women along with distinct amenities for their usage.[41][23]
The iconic Hilton hotel logo, which features the stylized "H" in a circle, was created in 1969 by the legendary graphic designer Saul Bass. Bass was also responsible for designing logos for other well-known brands, including AT&T, United Airlines, and the Girl Scouts of the USA.[42]
In 1969, the first DoubleTree Hotel opened. However, Hilton was not affiliated with the brand until it acquired the parent company in 1999.[43][44]
Between 1970 and 1971, Hilton acquired the International Leisure Company, including the International Hotel and the Flamingo Hotel, which were renamed the Las Vegas Hilton and the Flamingo Hilton.[45][46][47] The properties would become the first in the domestic gaming business to be listed on the NYSE.[48]
In 1977, Hilton International opened its first property behind the "Iron Curtain" in Communist Europe, the Budapest Hilton.[49]
In 1979, founder Conrad Hilton died at the age of 91.[50] Hilton Hotels Corporation later created the Conrad Hotels brand in honor of Hilton.[51]
Hilton Honors (formerly Hilton HHonors), the company's guest loyalty program, was initiated in 1987.[52] In 1994, the Honors surpassed competing hotel loyalty programs by offering members both hotel credit points and airline credit miles.[53][54]
In 1998, Hilton spun off its gambling operations into a separate, publicly held company called Park Place Entertainment (later Caesars Entertainment, Inc.)[57] In 1999, Hilton acquired Promus Hotel Corporation, which included the DoubleTree, Red Lion, Embassy Suites, Hampton Inn, and Homewood Suites brands.[58]
Two chains with one name
The company spun off its international operations into a separately traded company on December 1, 1964, known as "Hilton International Co." It was acquired in 1967 by Trans World Corp., the holding company for Trans World Airlines.
As a result, there were two separate, fully independent companies operating hotels under the Hilton name. Those Hilton Hotels outside the U.S. were, until 2006, styled as "Hilton International" hotels. Because the two chains were contractually forbidden to operate hotels in the other's territory under the Hilton name, for many years hotels run by Hilton International in the U.S. were called Vista International Hotels, while hotels operated by the American arm of Hilton outside the U.S. were named Conrad Hotels.[59]
In 1986, Hilton International was sold to UAL Corp., the holding company for United Airlines, for $980 million.[60] UAL was reorganized as 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 Allegis sold Hilton International to Ladbroke Group plc, a British leisure and gambling company, for $1.07 billion.[61] In May 1999, Ladbrokes was reorganized as "Hilton Group plc."[62]
In 1997, to minimize longtime consumer confusion, the American-owned Hilton and British-owned Hilton International companies adopted a joint marketing agreement, under which they shared the same logos, promoted each other's brands, and maintained joint reservation systems. At that point, the Vista chain was phased out, while Conrad was restyled as one of the luxury brands of Hilton, operating hotels within the U.S. and abroad.
On December 29, 2005, Hilton Hotels Corporation agreed to re-acquire the Hilton International chain from its British owner, Hilton Group plc, for £3.3 billion ($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.[63] On February 23, 2006, the deal closed, making Hilton Hotels the world's fifth-largest hotel operator in number of rooms.[64] Scandic Hotels was sold the next year on March 1 to EQT AB.[65]
21st century
Christopher J. Nassetta, Hilton Worldwide President and CEO, in 2004
In 2001, Hilton agreed to sell Red Lion to WestCoast Hospitality.[66]
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.[67] At $47.50 per share, the buyout price was 32 percent higher than the closing value of a share of Hilton stock on July 3.[68] The deal was the culmination of a year of on and off discussions with Blackstone.[69] In October 2007, Christopher J. Nassetta was appointed president and chief executive officer of Hilton.[70] In February 2009, Hilton Hotels Corp. announced that its headquarters were moving from Beverly Hills, California to Fairfax County, Virginia.[71]
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.[72]
Hilton returned to being a public company on December 12, 2013. This second IPO in the company's history raised an estimated $2.35 billion.[73] The Blackstone Group retained a 45.8% stake in the company.[7]
The company announced in February 2016 that Hilton would turn its hotel holdings into a real estate investment trust. Prior to making the announcement, the company went to the IRS for approval.[74]
In February 2016, Hilton announced its intention to spin off its timeshare and real estate businesses, creating three independent public companies.[75] The spin-offs of Park Hotels & Resorts and Hilton Grand Vacations were completed in January 2017.[76] As of 2018, the company is a fully independent publicly traded company (just like in the pre-buyout days) after the exits of Blackstone and HNA.[77]
The purpose of the 2017 spin-off of Hilton Grand Vacations and Park Hotels & Resorts from Hilton Worldwide into separate companies was to transform Hilton Worldwide into an asset-light company, making it more efficient for its shareholders due to it having less capital investments. This means that following the spin-offs, Hilton Worldwide now mainly owns the Hilton brands and not the majority of the physical properties that bear the Hilton name, meaning that it is not responsible for their operation or real estate costs, thus driving up their profits and shareholder value. This also means that Hilton shareholders can now choose which aspects of the brand they want to put their investments behind, and it allows for each individual area of the Hilton brand to focus on its specific area of business and grow more quickly. Following the spin-offs, Hilton Grand Vacations and Parks Hotels & Resorts now act in a very similar fashion to the franchise companies that own and operate the majority of Hilton Worldwide's hotel brands. This allows Hilton Worldwide to focus on its brand without incurring the majority of the capital investments and expenses that come with operations and real estate.
On February 7, 2024, Hilton announced an exclusive partnership with Small Luxury Hotels of the World.[78]
On April 3, 2024, Hilton announced its acquisition of a majority controlling interest in Sydell Group, the owner of NoMad Hotels, aiming to expand the luxury lifestyle brand with up to 100 new NoMad hotels globally.[79]
Hilton's business model for its various brands is based on largely on franchising rather than direct ownership and management of properties. Hilton Worldwide has full ownership of the hotel and resort brands as well as the intellectual property associated with them, however the vast majority of Hilton branded properties are not owned and operated by Hilton, instead they are independently owned and operated by independent franchisees or hospitality companies.[5] As of 2024, Hilton Worldwide owns 22 hotel and resort brands that cover a variety of areas in the hospitality sector in six internal categories:[80]
As of February 2024, 6,679 of Hilton's 7,530 hotels and timeshare resorts worldwide are owned and operated by independent franchisees or companies and not by Hilton Worldwide itself, this includes Hilton Grand Vacations which was a division of Hilton Worldwide until it was spun off into a separate company to act as a franchisee for Hilton's timeshare brands. Through this franchising model Hilton Worldwide owns the Hilton hotel and resort brands along with the Intellectual property associated with them, but does own or operate the physical hotels and resorts that bear those brand names. Additionally, Hilton Worldwide does not employ the staff that works at these franchised properties, instead the staff are employed by the independent franchisees or companies. The practice of franchising means that Hilton Worldwide is not responsible for the operational costs, real estate costs, maintenance costs, staff wages, and other costs that they would be if they were the ones owning and operating the properties, instead the independent franchisee or company incurs those costs. Hilton Worldwide profits from the franchisees through franchise fees, licensing fees, and agreements which give Hilton Worldwide a certain percentage the income. In order to utilize the Hilton brands, the independent franchisees and companies must follow strict brand standards to maintain a licensing agreement with Hilton Worldwide.[81] The franchise model makes Hilton Worldwide a more profitable company along with increasing its value for shareholders due to it having less capital and being able to focus more on its brand. Many of Hilton's flagship properties, airport properties, and largest resorts, however, are corporately managed.[citation needed]
The company has its headquarters in Tysons, Virginia, and an operations center in Memphis. Its Asia-Pacific operations are managed out of Singapore, its Middle East and Africa operations are managed out of Dubai, and its European operations are based in Watford, UK.[82]
Loyalty program
Hilton Honors (formerly Hilton HHonors) is Hilton's guest loyalty program, through which frequent guests can accumulate points and airline miles by staying within the Hilton portfolio. The program is one of the largest of its type, with approximately 195 million members.[83] There are four levels of elite status within the Hilton Honors program including Member, Silver, Gold, and Diamond. Hilton points average a value of 0.58¢ each.[84] Hilton renamed the Hilton HHonors program to Hilton Honors in February 2017.[85]
Company culture
According to Careerbliss.com, Hilton ranked first in the list of "2012 Happiest Companies in America", with a score of 4.36 out of 5.[86] The survey looked at job reviews from more than 100,000 employees, with such characteristics life as work-life balance, company culture and reputation, and the relationships employees have with their bosses.[87] Hilton has scored 100% on the Corporate Equality Index each year from 2014 to 2017.[88]
In 2016, Hilton was named one of the "World's 25 Best Multinational Workplaces" by Fortune and Great Place to Work.[89][90][91] In 2017, Fortune ranked Hilton number 26 in their list of "The 100 Best Companies to Work For".[92][93] In 2019, Fortune ranked Hilton number 1 in their list of "The 100 Best Companies to Work For".[94]
On the rotating wheel space station in Stanley Kubrick's 1968 film 2001: A Space Odyssey, a receptionist is shown sitting at the entrance to the Hilton Space Station 5.[96][97]
On April 3, 1973, Dr. Martin Cooper made the world's first cell phone call in front of the New York Hilton Midtown. A press conference was held at the hotel later that day to mark the milestone.[100][101]
Conrad Hilton (played by actor Chelcie Ross) features as a major character in the third season of Mad Men, as lead character Don Draper creates a series of ad campaigns for Hilton Hotels.[114] The Drapers travel during one episode to the Cavalieri Hilton in Rome,[115] though the scenes were actually shot at the Dorothy Chandler Pavilion in Los Angeles.[116]
Related Research Articles
Hilton Hotels & Resorts is a global brand of full-service hotels and resorts and the flagship brand of American multinational hospitality company Hilton.
Hyatt Hotels Corporation, commonly known as Hyatt Hotels & Resorts, is an American multinational hospitality company headquartered in the Riverside Plaza area of Chicago that manages and franchises luxury and business hotels, resorts, and vacation properties. Hyatt Hotels & Resorts is one of the businesses managed by the Pritzker family. Hyatt has more than 1350 hotels and all-inclusive properties in 69 countries, across South America, North America, Europe, Asia, Africa and Australia
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Blackstone Inc. is an American alternative investment management company based in New York City. It was founded in 1985 as a mergers and acquisitions firm by Peter Peterson and Stephen Schwarzman, who had previously worked together at Lehman Brothers. Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate business has actively acquired commercial real estate across the globe. Blackstone is also active in credit, infrastructure, hedge funds, secondaries, growth equity, and insurance solutions. As of May 2024, Blackstone has more than US$1 trillion in total assets under management, making it the world's largest alternative investment firm.
Cendant Corporation was an American provider of business and consumer services, primarily within the real estate and travel industries. In 2005 and 2006, it broke up and spun off or sold its constituent businesses. Although it was based in New York City, the majority of its headquarters employees were in Parsippany-Troy Hills, New Jersey.
Hampton by Hilton, formerly Hampton Inn or Hampton Inn & Suites, is an American chain of hotels trademarked by Hilton Worldwide. The Hampton hotel brand is a chain of moderately priced, budget to midscale limited service hotels with limited food and beverage facilities. Most Hampton hotels are independently owned and operated by franchisees, though a few are managed by Hilton. Hampton by Hilton is one of the largest hotel franchises in the U.S. As of March 2024, the Hampton franchise includes 3,000 hotels in 40 countries and territories.
La Quinta by Wyndham, also known as La Quinta Inn & Suites is a chain of limited service hotels in the United States, Canada, Mexico, and Honduras owned by Wyndham Hotels & Resorts. La Quinta Holdings, Inc. first sold shares to the public in April 2014. La Quinta has headquarters in Irving, Texas. As of December 31, 2023, the company owns and operates 918 properties with 89,391 rooms.
Wyndham Hotels & Resorts, Inc., is an American hospitality company based in Parsippany, New Jersey, United States. It describes itself as the largest hotel franchisor in the world, with 9,100 locations.
Wyndham International, previously Patriot American Hospitality, was an American hotel company based in Dallas, Texas.
Conrad Hotels & Resorts is an American multinational brand of high-end luxury hotels and high-end luxury resorts owned and operated by Hilton Worldwide. As of December 31, 2021, it has 42 locations with 15,085 rooms in 21 countries and territories, including two that are owned or leased with 778 rooms, 38 that are managed with 12,152 rooms, and two that are franchised with 2,155 rooms.
Marriott Vacation Club is the primary timeshare brand of Marriott Vacations Worldwide Corporation. The brand comprises around 70 Marriott Vacation Club properties throughout the United States, Caribbean, Central America, Europe, and Asia. Marriott Vacation Club resorts consist of one, two, and three-bedroom villas, with more than 400,000 owners.
Travel + Leisure Co. is an American timeshare company headquartered in Orlando, Florida. It develops, sells, and manages timeshare properties under several vacation ownership clubs, including Club Wyndham, WorldMark by Wyndham, Margaritaville Vacation Club, and Accor Vacation Club. The company also provides timeshare exchange services, primarily through RCI, and travel clubs including Travel + Leisure GO.
Hilton Grand Vacations Inc. is a multi-national company that is based in Orlando, Florida, United States. It manages and operates the Hilton Worldwide timeshare and vacation ownership brands under an exclusive licensing agreement with Hilton Worldwide. HGV was formerly a wholly owned subsidiary of Hilton Worldwide until it was spun off into a publicly traded company in 2017. Even though HGV is an independent company post spin-off, Hilton Worldwide still retains full ownership of the Hilton Grand Vacation Club, Hilton Vacation Club, and Hilton Club brands that HGV manages and operates for them. These timeshare brands are all part of Hilton Worldwide's portfolio of 22 hotel and resort brands.
Aqua-Aston Hospitality, LLC is a Honolulu-based hotel management company operating a multi-branded line of hotels, condominiums and vacation resort properties primarily located in Hawaii. The chain was purchased by Marriott Vacations Worldwide in 2018.
The Londoner Macao is a casino and resort on the Cotai Strip, in Macau. On August 5th, 2011, Sands China announced that the $4 billion property, long referred to as parcels five and six, would be officially named Sands Cotai Central. The first portion of the resort opened on April11th, 2012. The resort was rebranded as The Londoner Macao in 2021. The resort's redesign was completed in May 2023.
Marriott Vacations Worldwide Corporation is a pure-play public timeshare company. Formerly a division of Marriott International, Marriott Vacations Worldwide was established as a separate, publicly traded entity focusing primarily on vacation ownership in November 2011. Marriott Vacations Worldwide runs more than 120 resorts with over 700,000 Owners and Members. Its brands include Marriott Vacation Club, Marriott Vacation Club Pulse, Grand Residences by Marriott, and The Ritz-Carlton Destination Club. The Company also operates Interval International, which offers an exchange network and travel membership programs through a network of more than 3,200 affiliated resorts in over 90 countries and territories.
Diamond Resorts is a wholly owned subsidiary of Hilton Grand Vacations. Diamond Resorts was an independent timeshare and vacation ownership company until it was purchased by HGV in 2021. Following the purchase, Diamond's resorts became part of HGV's resort portfolio, and Diamond itself became a brand and subsidiary of HGV. The majority of Diamond Resorts have been or will be rebranded as Hilton vacation Club properties, however the original brand will continue to exist as some resorts are slated to retain the Diamond Resorts name.
Majestic Las Vegas is a cancelled high-rise condominium project that was to be built on property previously occupied by the La Concha Motel on the Las Vegas Strip, in Winchester, Nevada. The project was announced by La Concha owner Lorenzo Doumani in February 2004. The 42-story condominium tower was to be accompanied by Hilton's Conrad Las Vegas, a Conrad-branded, 37-story hotel that would operate in a separate high-rise building on the same property. The project was initially expected to open in February 2006.
Park Hotels & Resorts is a real estate investment trust (REIT) focused on hotel properties, based in Tysons, Virginia. It was formed in 2017 as a spin-off from Hilton Worldwide.
↑ "About Hilton: History & Heritage". Hilton Worldwide. Archived from the original on August 30, 2017. Retrieved August 28, 2017. Note: User must click on "Early 1900s", then slide number 3 for verification.
↑ "A History of Firsts". Hilton Hotels and Resorts. Archived from the original on October 23, 2017. Retrieved August 28, 2017.
1 2 "About Hilton: History & Heritage". Hilton Worldwide. Archived from the original on August 30, 2017. Retrieved August 28, 2017. Note: User must click on "1940s", then slide number 1 for verification.
↑ Petersen, Melody (September 8, 1999). "Hilton to Buy Promus Chain". The New York Times. Archived from the original on December 1, 2008. Retrieved March 23, 2008.
↑ Peter Lattman and Lingling Wei, "Blackstone Reaches Deal to Revamp Hilton's Debt,' Wall Street Journal, February 20, 2010; Hilton Worldwide press release, April 8, 2010; King of Capital, pp. 299–300.
↑ 2001: A Spacy Odyssey(Motion picture). Directed by Stanley Kubrick. Screenplay by Arthur C. Clarke and Stanley Kubrick. Cinematography by Geoffrey Unsworth. Edited by Ray Lovejoy. Produced by Stanley Kubrick. Metro-Goldwyn-Mayer. April 3, 1968. Hilton scene occurs at time index 26 mins 54 sec. OCLC994028060.{{cite AV media}}: CS1 maint: others in cite AV media (notes) (link)
↑ Kennedy, Pagan (March 15, 2013). "Who Made That Cellphone?". The New York Times. Archived from the original on November 4, 2017. Retrieved December 15, 2017.
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7,530 (2023)
US$1.15 billion (2023)
