Mergers, Acquisitions and Takeovers Case Study

Franchising at Hilton Hotels Corporation

OR

Abstract:
Hilton Hotels Corporation (HHC) was into ownership, management and development, and franchising of hotels, resorts and timeshare properties. As of 2003, HHC consisted of 2,173 properties, totaling over 348,000 rooms. Of these, HHC owned an interest in and operated 122 hotels, leased seven hotels, managed 206 hotels owned by others and franchised 1,808 hotels. Besides this, HHC also managed or franchised 30 timeshare properties. This case talks about the business of HHC and its franchising mode. It also discusses in detail the principles of franchising laid down by HHC and the step-by-step process of the franchising development.

Pedagogical Objectives:

• Pros and cons of the business model of the Hilton Hotel Corporation
• Could the franchise development process be simplified?
• Fairness of the Hilton’s principles of franchising
• Does the support program of Hilton add value to its system and attract new owners? Can any other programs be initiated?.

Keywords : Mergers,Acquisitions,Alliances Case Study;Hotels & Resorts; Hospitality Industry; Luxury Hotels; Hotel Management; Hilton HOnors-the guest loyalty program; One Services - CRM; Franchised hotels; Managed / leased hotels; Franchise Fee; Cross-selling Business Model; Hilton Reservation Franchise development process; UFOC; Worldwide; Principles of franchising; Franchise development Worldwide; Principles of franchising; Franchise development

Contents : 
Introduction
Franchising in Hospitality Industry
History of Hilton Hotels
Hilton’s Business Model
HHC: Number of Properties and Rooms
Joint Ventures for International Operations
Timeshare Ownership
Franchisee Growth at HHC
Hilton Hotel Corporation’s Franchise Hotels’ Portfolio