Hilton re-united could climb higher

21st Oct 2005

The British group, Hilton Group, with its 395 hotels across the world has announced discussions for the sale of its hotels to the American Hilton Hotels Corporation. This operation would cost an estimated 5.26 millions euros and would win a higher place in the classification of worldwide hotel groups.At the birth of the hotel corporation, the two groups were in fact linked and formed one sole title. It was in 1964 that the brand ‘Hilton’ split into two parts: Hilton Hotels Corporation continues to manage the United States hotels whilst the British group, Ladbrokes takes over the other market.
In terms of political marketing, loyalty schemes and reservations, the operation of the two hotel structures remains closely linked. In 41 years, the question of a merger between the two companies has often been mooted.
The current boom in the American hotel market has almost certainly accelerated the process. Moreover, Hilton Hotels Corporation is showing its intention to develop outside of the United States.

If this operation goes ahead, Hilton Hotels Corporation would win one place in the worldwide hotel groupings, with more than 453,000 rooms and would overtake Choice by more than 50,000 rooms.  This hypothetical classification takes into account the recent buyback of Le Meridien by Starwood Capital Group LLC and the consequent merger of Le Meridien with other hotels of the American group Starwood Hotels & Resorts.

However, the linking of the Hilton group and Hilton Hotels Corporation would have no consequence on the position of the brand name ‘Hilton’ in the European classification because at the moment Hilton Hotels Corporation has no hotels in Europe. Hilton Hotels Corporation simply takes the place of Hilton International at 5th place of the European hotel groups. The power of American groups in Europe therefore, is being reinforced and confirms the dynamism of American enterprises.

Research from MKG Consulting


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