Hilton Hotels Corporation
Encyclopedia
Hilton Worldwide is a global hospitality company. It is owned by the Blackstone Group
Blackstone Group
The Blackstone Group L.P. is an American-based alternative asset management and financial services company that specializes in private equity, real estate, and credit and marketable alternative investment strategies, as well as financial advisory services, such as mergers and acquisitions ,...

, a private equity firm. As of July 2011 Hilton brands encompass 3,750 hotels with over 600,000 rooms in 84 countries. Hilton is ranked as the 36th largest private company in the United States by Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...

.

The company owns, manages, and/or franchises a portfolio of brands which includes Waldorf Astoria Hotels and Resorts, Conrad Hotels
Conrad Hotels
Conrad Hotels is an international brand of upscale luxury hotels and resorts owned and operated by the Hilton Worldwide. Conrad was considered the luxury flagship brand in the Hilton Family of Brands, named after company founder Conrad Hilton, until being supplanted by The Waldorf-Astoria...

 & Resorts, Hilton Hotels & Resorts
Hilton Hotels & Resorts
Hilton Hotels & Resorts is an international chain of full-service hotels and resorts founded by Conrad Hilton and now owned by Hilton Worldwide. Hilton hotels are either owned by, managed by, or franchised to independent operators by Hilton Worldwide. Hilton Hotels became the first coast-to-coast...

, Doubletree
Doubletree
.Doubletree by Hilton is a worldwide brand of upscale, full-service hotels and resorts trademarked by Hilton Worldwide. There are currently more than 220 locations with 55,000 rooms worldwide in the United States, Canada, Costa Rica, Peru, China, United Kingdom, Italy, Slovakia, Tanzania, Norway...

 (DoubleTree by Hilton), Embassy Suites Hotels
Embassy Suites Hotels
'Embassy Suites Hotels is a chain of upscale all-suite hotels trademarked by Hilton Worldwide. As of Feb. 22, 2011, there are 200 Embassy Suites Hotels in the United States, plus 8 Embassy Suites Hotels internationally. Similar to other Hilton brands, most Embassy Suites hotels are independently...

, Hilton Garden Inn
Hilton Garden Inn
Hilton Garden Inn is a chain of hotels trademarked by the Hilton Worldwide. Hilton Garden Inns are considered to be upscale mid-priced hotels that are designed for both business and leisure travelers. The hotel brand is similar to that of the Courtyard by Marriott brand, a key competitor...

, Hampton Inn
Hampton Inn
'Hampton Hotels, Hampton Inn, Hampton Inn & Suites, and Hampton by Hilton are the names of a brand of hotels trademarked by Hilton Worldwide. Most Hampton hotels are independently owned and operated by franchisees, though a few are owned and/or managed by the Hilton Hotels Corporation...

 and Hampton Inn & Suites, Homewood Suites by Hilton
Homewood Suites by Hilton
Homewood Suites by Hilton is an American chain of all-suite residential-style hotels managed by the Hilton Worldwide. As of April 2011, the chain consists of 306 hotels and another 75 under development...

, Home2 Suites by Hilton
Home2 Suites by Hilton
Home2 Suites by Hilton is a mid-tier, all-suite extended-stay hotel featuring contemporary accommodations and customizable guest room design. The newest franchise member of Hilton Worldwide hotels will compete with Marriott TownePlace and InterContinental Hotels Group's Candlewood Suites...

 and Hilton Grand Vacations.

It was founded by Conrad Hilton
Conrad Hilton
Conrad Nicholson Hilton was an American businessman and investor. He is well known for being the founder of the Hilton Hotels chain.-Early life:Hilton was born in San Antonio, New Mexico...

 in Cisco
Cisco, Texas
Cisco is a city in Eastland County, Texas, United States. The population was 3,851 at the 2000 census.-History:Conrad Hilton started the Hilton Hotel chain with a single hotel bought in Cisco. Hilton came to Cisco to buy a bank, but the bank cost too much; so he purchased the Mobley Hotel in 1919...

, Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...

 and was headquartered in Beverly Hills
Beverly Hills, California
Beverly Hills is an affluent city located in Los Angeles County, California, United States. With a population of 34,109 at the 2010 census, up from 33,784 as of the 2000 census, it is home to numerous Hollywood celebrities. Beverly Hills and the neighboring city of West Hollywood are together...

, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

 from 1969 until 2009. The company moved to Tysons Corner
Tysons Corner, Virginia
Tysons Corner is an unincorporated census-designated place in Fairfax County, Virginia, United States. Part of the Washington Metropolitan Area located in Northern Virginia, Tysons Corner lies between the community of McLean and the town of Vienna along the Capital Beltway . The population was...

, unincorporated
Unincorporated area
In law, an unincorporated area is a region of land that is not a part of any municipality.To "incorporate" in this context means to form a municipal corporation, a city, town, or village with its own government. An unincorporated community is usually not subject to or taxed by a municipal government...

 Fairfax County
Fairfax County, Virginia
Fairfax County is a county in Virginia, in the United States. Per the 2010 Census, the population of the county is 1,081,726, making it the most populous jurisdiction in the Commonwealth of Virginia, with 13.5% of Virginia's population...

, Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...

, near McLean
McLean, Virginia
McLean is an unincorporated community and census-designated place in Fairfax County in Northern Virginia. The community had a total population of 48,115 as of the 2010 census....

 in August 2009.

20th century

Conrad Hilton
Conrad Hilton
Conrad Nicholson Hilton was an American businessman and investor. He is well known for being the founder of the Hilton Hotels chain.-Early life:Hilton was born in San Antonio, New Mexico...

 founded the original company in 1919 with one hotel in Cisco, Texas
Cisco, Texas
Cisco is a city in Eastland County, Texas, United States. The population was 3,851 at the 2000 census.-History:Conrad Hilton started the Hilton Hotel chain with a single hotel bought in Cisco. Hilton came to Cisco to buy a bank, but the bank cost too much; so he purchased the Mobley Hotel in 1919...

. The Hotel's name is Mobley Hotel.

The Hotels Statler Company
Statler Hotel
The Statler Hotel company was one of the United States' early chains of hotels catering to traveling businessmen and tourists. It was founded by Ellsworth Milton Statler in Buffalo, New York.- Early ventures :...

 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.
Trans World Corporation
Trans World Corporation was the original name of the holding company set up to own Trans World Airlines.In 1967 , when the airline sought to diversify into other areas of business, a key investment was Hilton International Hotels, the non-American interests of the Hilton Hotels chain...

, the holding company for Trans World Airlines
Trans World Airlines
Trans World Airlines was an American airline that existed from 1925 until it was bought out by and merged with American Airlines in 2001. It was a major domestic airline in the United States and the main U.S.-based competitor of Pan American World Airways on intercontinental routes from 1946...

, acquired the separated company. In 1986 it was sold to UAL Corp.
UAL Corporation
UAL Corporation is the former name of United Continental Holdings an airline holding company, incorporated in Delaware with headquarters in Chicago, Illinois. UAL held a 100 percent controlling interest in United Air Lines, Inc., one of the world's largest air carriers, and is a founding member of...

, the holding company for United Airlines
United Airlines
United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees (which includes the entire holding company United Continental...

, who became Allegis Corp. in an attempt to re-incarnate itself as a full service travel company encompassing Westin Hotels
Westin Hotels
Westin Hotels & Resorts are an upscale hotel chain owned by Starwood Hotels & Resorts Worldwide. As of 2011, Westin operated over 160 hotels in 37 countries.-History:...

 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
Ladbrokes
Ladbrokes plc is a British based gambling company. It is based in Rayners Lane in Harrow, London owned by Bhavin Kakaiya. From 14 May 1999 to 23 February 2006, when it owned the Hilton hotel brand outside the United States, it was known as Hilton Group plc...

, a British leisure and gambling company, which in May 1999 adopted the name Hilton Group plc.
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
Conrad Hotels
Conrad Hotels is an international brand of upscale luxury hotels and resorts owned and operated by the Hilton Worldwide. Conrad was considered the luxury flagship brand in the Hilton Family of Brands, named after company founder Conrad Hilton, until being supplanted by The Waldorf-Astoria...

. 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
Las Vegas Hilton
The Las Vegas Hilton is a hotel, casino, and convention center in Las Vegas, Nevada. It is a joint venture between Colony Capital, which owns 60 percent, and New York City-based REIT Whitehall Street Real Estate Funds, which owns the remaining 40 percent...

 and Flamingo Hilton.

In 1998, Hilton spun off its gaming operations into a separate, publicly held company called Caesars Entertainment
Caesars Entertainment
Caesars Entertainment may refer to:* Caesars Entertainment, Inc., the now defunct company that was Park Place Entertainment, Bally's, and formerly the gambling arm of Hilton Hotels, and purchased by Harrah's Entertainment...

 (formerly Park Place Entertainment).

In 1999, Hilton acquired Promus Hotel Corporation
Promus Hotel Corporation
Promus Hotel Corporation was a hotel management and franchise company based in Memphis, Tennessee.- History :Promus Hotel Corporation's beginnings are tied to the original Holiday Inn company in Memphis, Tennessee. By 1974 Holiday Inn had diversified into several businesses that included a meat...

, which included the Doubletree, Red Lion, Embassy Suites, Hampton Inn, & Homewood Suites brands.

21st century

In 2001, Hilton agreed to sell Red Lion to WestCoast Hospitality.

HHC was granted the naming rights to the George R. Brown Convention Center
George R. Brown Convention Center
The George R. Brown Convention Center opened on September 26, 1987 on the east side of Downtown Houston, Texas, United States.The center was named for the prominent Houstonian George R. Brown, an entrepreneur, civic leader and philanthropist. Brown’s Texas Eastern Corporation donated six of the 11...

 in late 2003. The Hilton Americas in Downtown Houston, Texas
Houston, Texas
Houston is the fourth-largest city in the United States, and the largest city in the state of Texas. According to the 2010 U.S. Census, the city had a population of 2.1 million people within an area of . Houston is the seat of Harris County and the economic center of , which is the ...

, 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
Conrad Hotels
Conrad Hotels is an international brand of upscale luxury hotels and resorts owned and operated by the Hilton Worldwide. Conrad was considered the luxury flagship brand in the Hilton Family of Brands, named after company founder Conrad Hilton, until being supplanted by The Waldorf-Astoria...

, Scandic Hotels
Scandic Hotels
Scandic Hotels is a hotel chain headquartered in Stockholm, Sweden with its main operations in the Nordic countries. Alongside hotels in Sweden, Norway, Finland and Denmark, the company also has a presence in Belgium and the Netherlands, Estonia and Lithuania, Northern Germany, Poland, and Russia...

 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
Fairfax County, Virginia
Fairfax County is a county in Virginia, in the United States. Per the 2010 Census, the population of the county is 1,081,726, making it the most populous jurisdiction in the Commonwealth of Virginia, with 13.5% of Virginia's population...

, located between Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....

 and Dulles International Airport. Just across the Potomac River
Potomac River
The Potomac River flows into the Chesapeake Bay, located along the mid-Atlantic coast of the United States. The river is approximately long, with a drainage area of about 14,700 square miles...

 is Montgomery County, Maryland
Montgomery County, Maryland
Montgomery County is a county in the U.S. state of Maryland, situated just to the north of Washington, D.C., and southwest of the city of Baltimore. It is one of the most affluent counties in the United States, and has the highest percentage of residents over 25 years of age who hold post-graduate...

, home to a number of Hilton's competitors including Marriott International
Marriott International
Marriott International, Inc. is a worldwide operator and franchisor of a broad portfolio of hotels and related lodging facilities. Founded by J. Willard Marriott, the company is now led by son J.W. Marriott, Jr...

, Ritz-Carlton
Ritz-Carlton
The Ritz-Carlton is a brand of luxury hotels and resorts with 75 properties located in major cities and resorts in 24 countries worldwide...

, Host Hotels & Resorts
Host Hotels & Resorts
Host Hotels & Resorts is a real estate investment trust and the owner of lodging real estate based in Bethesda, Maryland.-History:Host Hotels & Resorts was formed in 1992 when the Marriott Corporation split into two separate entities, creating Marriott International and Host Marriott...

, and Choice Hotels
Choice Hotels
Choice Hotels International is a hospitality holding corporation which is affiliated with several hotel brands and is based in Silver Spring, Maryland...

, 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.

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
Hampton Inn
'Hampton Hotels, Hampton Inn, Hampton Inn & Suites, and Hampton by Hilton are the names of a brand of hotels trademarked by Hilton Worldwide. Most Hampton hotels are independently owned and operated by franchisees, though a few are owned and/or managed by the Hilton Hotels Corporation...

 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
Hospitality industry
The hospitality industry consists of broad category of fields within the service industry that includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry. The hospitality industry is a several billion dollar industry...

 among most major hotel chains, especially among smaller brands with a fare number of locations that are not feasible to be each corporate owned and managed by the company. Competitor companies such as Marriott International
Marriott International
Marriott International, Inc. is a worldwide operator and franchisor of a broad portfolio of hotels and related lodging facilities. Founded by J. Willard Marriott, the company is now led by son J.W. Marriott, Jr...

 and Starwood
Starwood
Starwood may refer to:* Starwood Hotels & Resorts Worldwide* Starwood Amphitheatre* Starwood Club of Los Angeles, California* Starwood Festival...

 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
Loyalty program
Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior — behavior which is potentially beneficial to the firm....

 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 program
Frequent flyer program
A frequent flyer program is a loyalty program offered by many airlines. Typically, airline customers enrolled in the program accumulate frequent flyer miles corresponding to the distance flown on that airline or its partners. There are other ways to accumulate miles...

s 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
Hilton Hotels
Hilton Hotels & Resorts is an international chain of full-service hotels and resorts founded by Conrad Hilton and now owned by Hilton Worldwide. Hilton hotels are either owned by, managed by, or franchised to independent operators by Hilton Worldwide. Hilton Hotels became the first coast-to-coast...

, 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 pre-assignments, and special in-hotel amenities such as room upgrades and arrival amenities.

Hilton in popular culture

Conrad Hilton
Conrad Hilton
Conrad Nicholson Hilton was an American businessman and investor. He is well known for being the founder of the Hilton Hotels chain.-Early life:Hilton was born in San Antonio, New Mexico...

 features as a major character in the third season of Mad Men
Mad Men
Mad Men is an American dramatic television series created and produced by Matthew Weiner. The series premiered on Sunday evenings on the American cable network AMC and are produced by Lionsgate Television. It premiered on July 19, 2007, and completed its fourth season on October 17, 2010. Each...

as lead character Don Draper
Don Draper
Donald "Don" Draper is a fictional character and the protagonist of AMC's television series Mad Men. He is portrayed by 2008 Golden Globe winner Jon Hamm. Until the third season finale, Draper was Creative Director of Manhattan advertising firm Sterling Cooper...

 creates a series of ad campaigns for Hilton Hotels
Hilton Hotels
Hilton Hotels & Resorts is an international chain of full-service hotels and resorts founded by Conrad Hilton and now owned by Hilton Worldwide. Hilton hotels are either owned by, managed by, or franchised to independent operators by Hilton Worldwide. Hilton Hotels became the first coast-to-coast...

. The Drapers travel during one episode to the Cavalieri Hilton in Rome
Rome
Rome is the capital of Italy and the country's largest and most populated city and comune, with over 2.7 million residents in . The city is located in the central-western portion of the Italian Peninsula, on the Tiber River within the Lazio region of Italy.Rome's history spans two and a half...

, though the scenes were actually shot at the Dorothy Chandler Pavilion
Dorothy Chandler Pavilion
The Dorothy Chandler Pavilion is one of the halls in the Los Angeles Music Center . The Music Center's other halls include the Mark Taper Forum, Ahmanson Theatre, and Walt Disney Concert Hall.The Pavilion has 3,197 seats spread over four tiers, with chandeliers, wide curving stairways and rich décor...

 in Los Angeles.

At the rotating wheel space station in Stanley Kubrick
Stanley Kubrick
Stanley Kubrick was an American film director, writer, producer, and photographer who lived in England during most of the last four decades of his career...

's film 2001: A Space Odyssey
2001: A Space Odyssey (film)
2001: A Space Odyssey is a 1968 epic science fiction film produced and directed by Stanley Kubrick, and co-written by Kubrick and Arthur C. Clarke, partially inspired by Clarke's short story The Sentinel...

, visitors can stay at a Hilton hotel. Hilton's logo appears prominently in the space station's lounge.

Many actual Hilton hotel properties around the world have also been featured in various Hollywood films.

The popular Hilton Honors guest loyalty program
Loyalty program
Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior — behavior which is potentially beneficial to the firm....

 was featured in the 2009 film Up in the Air
Up in the Air (film)
Up in the Air is a 2009 American comedy-drama film directed by Jason Reitman and co-written by Reitman and Sheldon Turner. It is a film adaptation of the 2001 novel of the same name, written by Walter Kirn. The story is about a corporate downsizer Ryan Bingham and his travels...

as means of product placement
Product placement
Product placement, or embedded marketing, is a form of advertisement, where branded goods or services are placed in a context usually devoid of ads, such as movies, music videos, the story line of television shows, or news programs. The product placement is often not disclosed at the time that the...

 in which various characters present their branded Hilton Honors membership cards to check in to Hilton hotels
Hilton Hotels
Hilton Hotels & Resorts is an international chain of full-service hotels and resorts founded by Conrad Hilton and now owned by Hilton Worldwide. Hilton hotels are either owned by, managed by, or franchised to independent operators by Hilton Worldwide. Hilton Hotels became the first coast-to-coast...

throughout the film.

External links

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