HR Diploma academic year 2010/2011

Corporate Overview
 Hilton Hotels Corporation is the leading global hospitality company, with
more than 3,200 hotels and 525,000 rooms in 77 countries, with more than
135,000 team members worldwide. The company owns, manages or franchises
some of the best known and highly regarded hotel brands including Hilton®,
Conrad® Hotels & Resorts, Doubletree®, Embassy Suites Hotels®, Hampton
Inn®, Hampton Inn & Suites®, Hilton Garden Inn®, Hilton Grand Vacations™,
Homewood Suites by Hilton® and Waldorf Astoria™.
 Today Hilton Worldwide is the leading global hospitality company,
spanning the lodging sector from luxurious full-service hotels and resorts to
extended-stay suites and mid-priced hotels.
 Hilton Hotels Corporation is an Official Sponsor of the U.S. Olympic Team,
which will extend through the 2010 Olympic and Paralympic Winter Games in
Vancouver, the 2012 Olympic and Paralympic Games in London, the 2010/2012
U.S. Paralympic Team and the 2011 U.S. Pan American Team.

1- Current Situation
a. Current Performance
i. Return On Investment
 “In one of the most challenging years on record, Hilton managed
properties delivered a RevPar (revenue per available room) premium
of 117 percent, and we reduced costs by 30 percent through
permanent cost control programs and best practices,” said Benolken.
“Our use of innovative programs, such as LightStay, also saved our
hotel owners more than $29 million in utility costs alone in 2009.” The
initiative was unveiled today; Friday, January 14, 2011, by Tim
Benolken, senior vice president, operations, western North America,
Hilton Worldwide. “Financial Global News Channel”
 LightStay: Right Today, Bright Tomorrow. We know that you
can't manage what you can't control; and you can't control what you
can't measure. LightStay is our proprietary system of measurement. It
calculates sustainability performance impact
across our global portfolio of hotels. LightStay delivers value to hotel
owners without any additional cost. The system's data is used to
improve the guest experience and drive economic returns.
 Performance Results: By December 31, 2011, all 3,600 Hilton
Worldwide properties will use LightStay. It’s the way we support our
commitment to be the first major hospitality company making
sustainability measurement a brand standard. Sustainability is of
equal importance to service and will be evaluated as part of regular
property-level reviews. Already it’s producing results.
 2009 Results: Properties using LightStay:
o Reduced energy use by 5%
o Reduced waste output by 10%
o Reduced carbon output by 6%
o Reduced water use by 2.4%
 Aggregated Impact of the Reductions:
o Conserved enough energy to power 5,700 homes for a year
o Saved enough water to fill more than 650 Olympic-size pools

Asmaa Qassem 1/22 January 2011

 o Reduced carbon output equivalent to taking 34,865 cars off the
road
o Reductions in water and energy use translated into dollars-saved
for hotel owners with estimated savings of more than $29 million
in 2009 utility costs.
 Authenticity: Results have been independently audited. We
commissioned KEMA-Registered Quality, Inc, a Management Systems
design company, to perform third-party audits. Just like a financial
statement, we verify externally our overall system, process, and
results. This extensive audit determined LightStay a best-in-class
system for measuring sustainability performance.
ii. Market Share
 To increase occupancy and revenue, CEP (The Center for Effective
Performance, Inc.) created Revenue Management University (RMU), a
self-paced and customizable training program for hotels of differing
size, type and geographic locations. One of the challenges CEP faced
in creating the program for Hilton was designing courseware flexible
enough to handle the differing needs of the Hilton brands, which
range from vacation-oriented resort hotels to those catering to
business travelers staying only one night. CEP overcame the
challenge by designing a course with specific offerings for each type
of hotel that was structured to address individual DRMs needs.
 Results: The result of the new program is a more productive
DRM. “DRMs don’t spend time doing ineffective analyses,” the
director said. “They target opportunities more quickly and are more
proactive in their selling strategies.”
The improvements to the DMR training were demonstrated after
Hilton’s purchase of the Doubletree hotel chain. Once a trained DRM
was placed in each of the newly acquired Doubletree Hotels, the
brand grew from 94.1 percent on the industry’s revenue-per-available-
room index to 99 percent. Drastic improvements were also evident
across the Hilton family as revenue increased more than 60 percent
after the first year of DRM training.

 For Hilton, the training and programs created by CEP and

implemented throughout the company have been a tremendous
success and are a driving factor in the continued growth of the chain
in the industry. “Performance News Edge; January 2011”
iii. Profitability
 Key numbers for fiscal year ending December, 2009:
Sales: $7,500.00 Million; One year growth: (3.5%)
 Hilton Hotels Corp. HLT.N on Wednesday reported a rise in fourth-
quarter net income, helped by higher room rates, unit growth and
acquisition of the hotel assets of Hilton Group last February. Hilton
said net income rose to $207 million, or 50 cents a share, from $105
million, or 26 cents a share, a year earlier. (Reuters) - NEW YORK,
Wednesday, January 31, 2007 9:24am EST
 Fortune 500; 2007

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 % change from
$ millions
2005
Revenues 8,162.0 84.0
Profits 572.0 24.3
Assets 16,481.0 —
Stockholders' Equity 3,727.0 —
Market Value 3/23/2007 13,839.0 —
 Hilton Group (HG-), the British hotel and gaming company, said
2001 pretax profit before cost rose 1.3 percent of £280.2 million
($397.3 million), in line with analysts' expectations.
The operator of Hilton hotels outside the United States and Ladbrokes
betting said it expects market conditions to recover in the second-half
of the year as the global economy rebounds.
"The effects of September 11 were not as bad as most feared, and
trading conditions never went down as much as after the Gulf War.
What we see is occupancy levels recovering to last year's levels by
the second half," said Chief Executive David Michels.
Its stock fell 4.2 percent 222.75 pence in midday London trading on
Thursday. “CNNMoney, February 28, 2002: 8:31 a.m. ET”
b. Strategic Posture
 Vision: To fill the earth with the light and warmth of hospitality.
 Mission: We will be the preeminent global hospitality company – the first
choice of guests, team members and owners alike.
 Values:
o H Hospitality – We are passionate about delivering exceptional
guest experiences.
o I Integrity – We do the right thing, all the time.
o L Leadership – We are leaders in our industry and in our
communities.
o T Teamwork – We are team players in everything we do.
o O Ownership – We are the owners of our actions and decisions.
o N Now – We operate with a sense of urgency and discipline.
 Objectives:
o Our objective: is to lead our industry with products and programs
that not only deliver great guest experiences, but protect the
world we live in. It's how we provide for today's needs while
positively influencing tomorrow.
 Strategies:
o Earlier, Hilton focused on acquiring and owning more real estate.
However, it has recently changed its growth strategy, and it now
focuses on spreading its operations through franchisees. This
enables the company to earn revenues in the form of franchisee
fee without incurring any additional costs to purchase real estate
and construct hotels.
o International HRM Strategy (Recruitment):
Three different approaches available to managing and staffing
companies’ subsidiaries include an ethnocentric approach, which
will tend to use expatriates in key positions abroad; a polycentric
approach with the use of local nationals wherever possible, and a
geocentric approach with a mixture of nationals, expatriates and
third country nationals.
In the ethnocentric approach, the cultural values and business
practices of the home country are predominant. All the standards
for evaluation and control are determined centrally from the
headquarters in the form of orders and commands.
The polycentric approach is in direct opposition. The subsidiaries
in each country are developed locally under the supervision of
local managers. It results in little communication between

Asmaa Qassem 3/22 January 2011

 headquarters and subsidiary.
With the geocentric approach, organizations try to combine the
best from headquarters and the subsidiaries to develop consistent
worldwide practices. Manager selection is based on competency
rather than nationality. In regard to Hilton Hotel Group, it tries to
involve more integration between centre and subsidiaries to
ensure close co-operation between the different parts of the chain,
and implement both universal and local standards for evaluation
and control.
The company that applies the global integrated business strategy
manages and staffs employees on a global basis. For example,
Hilton has for many years attempted to recruit and develop a
group of international managers from diverse countries. These
people constitute a mobile base of managers who are used in a
variety of facilities as the need arises.
 Goals: We've committed to the following five-year (2009 − 2014)
reductions from direct operations:
o Reduction of energy consumption, CO2 emissions, and waste
output by 20%.
o Reduction of water consumption by 10%.
o Advancement of renewable energy.
o Advancement of sustainable buildings and operations.
 For Hilton Worldwide, sustainability means continuous improvement and
action.
 Sustainability is a brand standard. It’s now a critical performance
measure of the business just like quality, service, or revenue. We’re the first
major multi-brand hospitality company in the industry to make such an
important leap.

2- Corporate Governance
a. Board of Directors
 Hilton Worldwide the formerly Hilton hotels corporations (HHC), owned by
BLACK STONE
 In 1919, Conrad Hilton bought his first hotel in Cisco, Texas, we have
expanded geographically, produced original hotel and travel concepts, and
developed innovative technologies to enhance the guest experience.
 Executive Committee on Board:
Christopher J. (Chris) Nassetta
President and Chief Executive Officer
He joined Hilton Worldwide as President and
Chief Executive Officer in December 2007.
Previously he was President and Chief
Executive Officer of Host Hotels & Resorts,
Inc. a position he held since 2000. He joined
Host in 1995 as Executive Vice President and
was elected Chief Operating Officer in 1997.

Before joining Host, Mr. Nassetta co-founded

Bailey Capital Corporation in 1991, where he
was responsible for the operations of the real
estate investment and advisory firm. Prior to
founding Bailey Capital Corporation, he spent
seven years at The Oliver Carr Company,
ultimately serving as chief development
officer. In this role, he was responsible for all
development and related activities for one of
the largest commercial real estate companies
in the mid-Atlantic region.

Asmaa Qassem 4/22 January 2011

 Ian R. Carter
President, Global Operations and
Development

He was appointed President of Global

Operations for Hilton Worldwide in early
2008, having previously held the position of
Chief Executive of Hilton International for
three years.
Prior to joining Hilton, Mr. Carter was an
Officer and President of Black & Decker
Corporation, Europe, Middle East, Africa and
Asia. Mr. Carter has broad international
general management and marketing
experience having worked in many locations,
in the USA, Europe and the Far East. He
worked his way through sales, marketing and
product management to reach the general
management level at General Electric as
President of the Specialty Chemicals
business.

Tom Kennedy
Executive Vice President & Chief
Financial Officer

He joined Hilton Worldwide in September

2008 and brings more than 20 years of
experience to his role of Chief Financial
Officer.
Prior to Hilton, he served as Executive Vice
President and Chief Financial Officer of
Vanguard Car Rental, the parent company of
National Car Rental and Alamo Car Rental
brands where he oversaw the finance
function for the U.S., Canadian and European
corporate operations. Prior to Vanguard, Mr.
Kennedy held a variety of management and
executive positions at Northwest Airlines, Inc.
from 1992 to 2003, most recently serving as
Senior Vice President and Controller. During
his tenure, he spent two years in Tokyo,
Japan, managing the finance and information
systems in Northwest's Pacific Division.

Ellen Gonda
Senior Vice President, Global Corporate
Communications

She joined Hilton Worldwide as Senior Vice

President, Global Corporate Communications
in October 2008.

Previously she was Director of

Communications for the Americas for the
global private equity firm The Carlyle Group.
At Carlyle, she was responsible for firm-wide
communications initiatives in North and South

Asmaa Qassem 5/22 January 2011

 America. Prior to joining Carlyle, Ms. Gonda
was a Director at Brunswick Group, the
international communications consultancy,
where she provided counsel to international
companies experiencing crisis situations,
particularly transactions and restructurings
across a variety of sectors. Prior to joining
Brunswick in 2000, Ms. Gonda held positions
at Gavin Anderson & Company and Abernathy
MacGregor Frank.

Matt Richardson
Global Head of Architecture, Design &
Construction; Head of Real Estate

He was named Hilton Worldwide's Global

Head of Architecture, Design & Construction
in October 2008 and oversees the company's
worldwide efforts with respect to new build
projects, capital improvement, technical
advisory services, interior design and
construction for owned and managed as well
as franchised properties. He began his career
in real estate in 1985. He was formerly SVP
and Chief Development Officer for Host
Hotels and Resorts, where he oversaw all of
the company's design and construction
activities. Prior to joining Host Hotels and
Resorts in 1997, he held various positions
with CarrAmerica Realty Corporation.

Paul Brown
President, Global Brands & Commercial
Services

He is the company's global leader for brand

management, customer marketing, sales,
reservations, revenue management &
information technology.

He joined Hilton Worldwide in November 2008

and brings extensive experience to his role at
Hilton. Most recently, he served as President
of Expedia North America and of Expedia's
Partner Services Group. Prior to Expedia, He
was a partner at McKinsey & Company. Based
in London, he led the firm's global travel and
hospitality practice and served clients in all
sectors of the travel and hospitality business.
He also worked at InterContinental Hotels
Group, where he served as Senior Vice
President of global Brand Services after his
promotion from Vice President of Strategic
Planning.

Asmaa Qassem 6/22 January 2011

 Mark Wang
President, Hilton Grand Vacations
Company, LLC

He was appointed President of Hilton Grand

Vacations after serving as Head of Hilton
Grand Vacations, Asia since January 2007. A
25-year veteran of the vacation ownership
industry, He first joined Hilton Grand
Vacations in 1999 as Managing Director,
Hawaii, and since that time, has held
numerous sales, marketing and management
positions within the organization.
Prior to Hilton, Mr. Wang co-founded PAHIO
Resorts in Hawaii and served as its president
for six years. He later founded Aloha Resorts
International, which oversaw the sales,
marketing and property management of
Kahana Falls Resort on the Island of Maui. In
1994, he formed Grand Ownership Resorts,
Ltd., a consulting company that developed a
successful vacation ownership program at
The Bay Club on the Big Island of Hawaii, a
resort now managed by Hilton Grand
Vacations.

Matthew W. Schuyler
Executive Vice President & Chief Human
Resources Officer

In this capacity, he leads the human

resources organization from the company's
global headquarters in McLean, Virginia as
Hilton continues its mission to become the
world's leading hotel company. He has more
than 20 years of experience in corporate
human resource management, and was most
recently with Capital One Financial
Corporation. As Chief Human Resources
Officer, he was responsible for guiding the
Fortune 500 company's award-winning
human resources strategy and execution, as
well as overseeing Capital One's corporate
real estate portfolio and corporate
sustainability efforts.
Prior to Capital One, Mr. Schuyler held
leadership positions with Cisco Systems, Inc.,
where he was a Vice President of Human
Resources, and with PricewaterhouseCoopers,
where he served as a partner in the Global
Human Resources group.

Kevin Jacobs
Senior Vice President, Corporate
Strategy & Treasurer

He joined Hilton Worldwide as Senior Vice

President, Corporate Strategy in June 2008.
He was elected Treasurer in May 2009.

Asmaa Qassem 7/22 January 2011

 Previously he was Senior Vice President,
Mergers & Acquisitions and Treasurer of
Fairmont Raffles Hotels International. In that
capacity, he was responsible for sourcing,
evaluating and executing on potential
mergers, acquisitions or other strategic
corporate transactions and leading the
company's corporate strategic and business
planning efforts. As Treasurer, he oversaw
the company's corporate finance, capital
markets and treasury and cash management
activities globally. Prior to joining Fairmont
Raffles, He spent seven years with Host
Hotels & Resorts, Inc., most recently as Vice
President, Corporate Finance & Investor
Relations, in which capacity he led the
company's strategic planning and investor
relations functions. Prior to joining Host, he
held various roles in the Hospitality
Consulting practice of
PricewaterhouseCoopers LLP.

b. Top Management
 An organization’s culture is translated into practice largely as a result of
actions taken by managers. Thus, the quality and style of managerial leadership
is crucial in shaping perceptions that will support cultural values and hence, the
organization’s strategy. Managers have been classified by their decision-making
style: authoritarian, democratic (the leader actively involves subordinates in the
decision-making process, sharing problems, soliciting input and sharing
authority) and laissez-faire. Sometimes, a hotel company operating around the
whole world may focus on democratic management style rather than an
authoritarian style since it has to relate to different employees from different
cultures or social backgrounds. For example, Hilton Worldwide has a “Disclosure
Procedure” to ensure such a democratic management environment. If in doubt,
in this organization, employees are encouraged to discuss the matter with the
person to whom they report or to the company’s secretary. They also all have a
responsibility to draw attention to issues that come to their attentions or that
comes to their knowledge. They are also responsible for helping to maintain a
safe and healthy workplace for their employees. Thus employees can enjoy the
work in a pleasant and comfortable environment.
 Moreover, despite the increasing levels of globalization, the management
style in the hotel industry tends to be localization, which can meet the specific
needs of local employees. While labor supply is not a problem in most
developing countries, skilled personnel are sometimes difficult to find, due to a
shortage of training facilities and trainers. However, local labors usually have
quite different needs from those of imported laborers or immigrants. Facing such
an issue, a multinational hotel company has to set up some new management
approaches or adjust its management style. For example, the reward system will
be different in China and in Australia. Recently, Australian employees have been
required to reduce their working hours each week, although most of them have
been promised overtime payments. The situation is quite different in China. Two
of the greatest ways to show appreciation to the Chinese employees is through
giving higher salaries and promotions instead of through giving them vocations
or leave to spend with their families.

3- External Environment: Opportunities and Threats (SWOT)

 In the 21st century, with the increasing levels of globalization in hotel
industry, hotel companies will need to learn different management approaches to

Asmaa Qassem 8/22 January 2011

 survive and develop in environmental circumstances with high levels of uncertainty
as well as understand the implication of future impacts, both positive and negative,
of the changing environment in which they operate. As international trade and
business expand, there is no question that international linkage will become more
important for the hotel industry.
a. Societal Environment
i. Economic
 Inflation
 Exchange Rate Policy
 Financial Crisis Of 2007–2010
o Increased Debt Burden Or Over-Leveraging
o Incorrect Pricing Of Risk
o Boom And Collapse Of The Shadow Banking System
o Systemic Crisis
o Role Of Economic Forecasting
o Impacts On Financial Institutions
o Credit Markets And The Shadow Banking System
o Wealth Effects
o European Contagion
o 2010 European Sovereign Debt Crisis
o Emergency And Short-Term Responses
o Regulatory Proposals And Long-Term Responses
ii. Technological
 Mobile Service To Ensure That Customers Have The Best Possible
Means Of Booking And Managing Their Hotel Accommodation With
Ease;
 High Speed Internet Systems– Wired / Wireless;
 Wireless High-Speed Internet Service In Public Areas;
 24-Hour, Self-Service Business Centers;
 Secure Remote Guest Printing Services;
 Mail & Shipping Services;
 Comfortable Workspaces In Guestrooms;
 Room Management Software;
 In Room Entertainment;
 Wireless Access;
 Video Surveillance;
 Cabling And Wiring;
 Security Systems;
 Overhead Music;
 Digital Media;
 CCTV Closed-Circuit Television; and
 Electronic Door Locks
iii. Political-legal
 Regional instability;
 Extensive devolution of power;
 Accumulation of wealth through the use of state institutions must
be totally forbidden;
 The principles of good and democratic governance must be fully
implemented, i.e., transparency, accountability, and independent
judiciary;
 Extensive involvement of civil society in national and local affairs
especially in the service delivery.

 Penalty rates;
 Overtime loadings;
 Allowances;

Asmaa Qassem 9/22 January 2011

  Minimum and maximum hours of work;
 Control and prioritize access to utilities and commodities;
 Limit domestic and foreign travel and prevent cross border
movement of goods; and
 Workplace safety requirements, including the osha general duty
clause, respiratory hygiene, and issues associated with vaccinations.
iv. Sociocultural
 Foreigners to Egyptian hotel rates; and
 Turnovers due to social perceptions.
b. Task Environment
i. Threat of new entrants
ii. Bargaining power of buyers
iii. Threat of substitute products or services
iv. Bargaining power of suppliers
v. Rivalry among competing firms
vi. Relative power of unions, governments, special interest groups,
etc.
c. Summary of External Factors
 Hotel values per room are back to where they were in 1996, without
adjusting for inflation, and HVS believes that hotel values have already
increased more than 10% nationwide for 2010.
 Debt financing for existing hotels is improving significantly (enhancing
liquidity and value), while development and construction financing for new
hotels is virtually non-existent, restraining the influx of new supply and
competition for existing hotels.
 Hotel industry fundamentals are improving from the worst collapse since
the Great Depression, and look to get much stronger in second half of 2011
and are poised for double digit growth for the next three or four years.
 Prices for construction labor and materials have fallen since 2008, with
the costs of steel tubing falling by 20%, fabricated structural materials by
14% and pre-pressed concrete and drywall materials by 10%.
 While prices are deflating, government leaders are positioning their
currencies for inflation as one of the cures for their debt problems. The net
effect will be inflated asset values with a corresponding reduction in debt and
investor losses, and further heightening the risk of waiting for the bottom.
 If a hotel can service debt now (or as restructured), in this economy, it is
hard to imagine a better time to purchase.

4- Internal Environment: Strengths and Weaknesses (SWOT)

a. Corporate Structure
b. Corporate Culture
c. Corporate Resources
 Our dedicated Communications team is deployed across the Americas to
work exclusively with our managed portfolio. This core competency is
comprised of a group of professionals that averages more than 15 years of
experience in hospitality public relations. They interact with hundreds of
consumer, business, and industry-related media, and maintain relationships
with the foremost and most prominent media sources in the industry.
o Milestone publicity
o Proactive media relations
o Issues management
o 24/7 crisis communications support
i. Marketing
1. Objectives:
 Hilton.com, the brand’s booking portal, is now available in Spanish,
German and Japanese, with other translations, including French, in
progress.

Asmaa Qassem 10/22 January 2011

 2. Strategies:
 LONDON - Luxury hotel chains must adapt their brand strategy if
they are to attract cost-conscious travellers, according to leading
branding experts. Speaking ahead of the launch of its premium
boutique hotel brand, Denizen, Hilton chief executive, Chris Nassetta,
conceded last week that economic conditions were leading the
company to re-evaluate its brand positioning. Simon Bailey, chief
executive of branding consultancy The Brand Union, agreed that
Hilton and its competitors should try to present their portfolios in a
way that reflects travellers' changing habits. He suggested they make
more sophisticated use of their portfolio of sub-brands. 'These chains
shouldn't change the branding as such,' said Ellwood. 'It's about how
you use the portfolio of brands to create a virtuous cycle. Hilton,
particularly, needs to work harder at this.' “Marketing, March 17,
2009, 8:30am”
 Hilton Hotels is sponsoring MSNBC’s revamped mobile platform via
display banners and cobranded rich-media ad units that are an
extension of the brand’s mobile strategy. The hotel chain is taking
over MSNBC’s entire mobile site today using both 300x250 and
300x50 ads. Hilton is running banner ads semi-exclusively for the
remainder of the month and is also a featured sponsor of MSNBC
breaking news text-message alerts. Hilton will be making use of the
larger 300x250 ads, which are very infrequently seen on
mobile. “Mobile Marketer, April29, 2010”
3. Policies:
 Hilton Worldwide statement in response to Avaaz.org campaign on
Human Trafficking. Hilton Worldwide absolutely and outright
condemns all forms of human trafficking and commercial exploitation,
including the sexual exploitation of men, women or children. We
strongly support ECPAT and its principles and objectives. All
responsible businesses and individuals would support the concept of
vigilance in this area. Our soon-to-be-issued updated Global Business
Ethics Policy will specifically address the exploitation of minors and
will be rolled out globally by the end of the year. Hilton Worldwide is
moving forward with discussions with ECPAT-USA and other
organizations about steps to prevent child prostitution and human
trafficking, and we continue to engage in and evaluate methods for
prevention. Hilton Hotels and ECPAT-USA have been in discussions for
several weeks about the Code of Conduct for the Protection of
Children in Travel and Tourism. We are hopeful that these discussions
will prove fruitful as Hilton works internally to understand the issues
the Code of Conduct raises. We are looking forward to the
continuation of these discussions and a positive resolution.
4. Program:
 Hilton Hotels announced the re-launch of two of the brand’s online
channels – HiltonJourneys.com and HiltonToHome.com. In addition to
the two refreshed sites, the brand recently completed the translation
of its Hilton.com booking portal into Spanish, and is in the process of
completing a French version of the site. “HotelMarketing.com, March
22, 2007”
 Loyalty Program: Hilton HHonors® is the world’s leading
frequent-guest program. It is the only program of its type to offer its
members the ability to earn points and miles for the same hotel stay;
enjoy hotel rewards with No Blackout dates or capacity controls (If a
standard room is available, you can redeem points for it;) and allow
members to redeem points for free nights at any of the more than
3,500 properties within the Hilton Worldwide portfolio of hotels. We
pride ourselves in offering the greatest flexibility when our members
redeem their points. HHonors has created a two-way point exchange

Asmaa Qassem 11/22 January 2011

 that enables members to convert hotel points for airline miles and
airline miles for points with participating airlines. We have also
partnered with leading travel partners to create additional
opportunities for our members to redeem their points at top airline,
car rental and cruise companies.
5. Marketing Mix:
 Luxury: Waldorf Astoria and Conrad
 Full Service: Hilton, Doubletree, and Embassy Suites
 Focused Service: Hilton Garden Inn, Hampton, Homewood
Suites, and Home2 Suites
 Timeshare: Hilton Grand Vacations
ii. Finance
 Hilton Management Services provides one of the most
sophisticated budgeting and forecasting tools available in the
industry. Our competitive and success-oriented team of Finance
professionals utilizes a centralized accounting method that provides
considerable cost savings to our entire portfolio of hotels. An
advanced system of internal controls and global finance policies
minimizes risk and ensures your asset is protected.
o Financial performance reviews
o Key metric benchmarking
o Integral performance systems
 Hilton Finance is in the process of upgrading all of its financial
platforms in order to drive down costs and improve financial reporting
and benchmarking. We use best-in-class Human Resources systems –
including PeopleSoft and SuccessFactors – to recruit and retain the
best financial leaders in the industry.
 At Hilton Management Services (HMS), we make your cost savings
our number one priority. With over $1 billion in annual purchases,
HMS is one of the world’s largest and most respected hospitality
supply companies. We are perfectly placed to streamline your
procurement processes and procedures, whether you own a large-
scale hotel of several thousand rooms, or a smaller scale boutique
hotel with less than a hundred.
 HMS evaluates and explores all avenues of potential savings, and
exploits every opportunity to improve your margins and maximize
profitability.
o Supplier consolidation
o Continuity of supply
o Technical support
o Inventory management
o Supplier audits
 Our hybrid ‘Hub and Spoke’ approach combines experienced
corporate-level leadership and an acclaimed regional presence in the
field with a firm focus on providing the very best staffing, training and
oversight.
 By serving as the ‘Merchant of Record,’ Hilton Supply Management
can create cost savings on normal operating supplies, as well as
capitalized purchases for renovations and new development – a
business model that leverages more than $3 billion in annual
spending.
iii. Research and Development (R&D)

iv. Operations and Logistics

 The legal support and consultation we provide can present
material savings to ownership. Our long track record providing legal
guidance to our hotels makes us the preferred choice over third-party

Asmaa Qassem 12/22 January 2011

 counsel because we are the most familiar with the broader objectives
of our brands. Even in those cases when outside legal counsel can be
advantageous, we will still try to keep the process in-house for your
financial benefit.
Our legal team also benefits from economies of scale that most
franchises cannot duplicate. We have a library of forms and other
materials that enable us to respond quickly, effectively, and
inexpensively to the day-to-day legal needs of our portfolio. Because
we manage a large number of hotels, we are familiar with new legal
challenges in the industry before many of our colleagues at non-
managed properties. In fact, when a legal challenge surfaces at one
hotel, we often notice we already encountered a similar issue at
another property.
 Our Architecture and Construction experts provide a wide array of
technical services to assure new construction, renovations and design
projects all adhere to Hilton standards and the most current brand
initiatives. We oversee your project from start to finish, including:
o Preliminary consultation
o Value engineering
o Periodic project visits
o Bidding and negotiation
 We also coordinate with all other Hilton Worldwide disciplines,
including Food & Beverage, Loss Prevention & Risk Management,
Information Technology, Front Office Systems, Engineering, and
Finance to ensure all of our projects are operationally efficient and
compatible.
v. Human Resources Management (HRM)
 Partner with Hilton Management Services (HMS) and you can count
on our leading talent and expertise in Human Resources to provide
your property and its employees with exemplary service. With over
100,000 team members, HMS has extensive knowledge of
employment benefits and compensation, and maintains a
comprehensive training library in all related areas, including guest
service.
 HMS uses best-in-class Human Resources systems – including
PeopleSoft and SuccessFactors – to recruit and retain the industry's
finest staff and most talented graduates. We are also industry leaders
in electronic applicant tracking and internet recruiting, and maintain
updated databases to track turnover statistics, along with the costs of
drug testing and background research.
o Employment relations
o Collective bargaining agreements
o Recruiting
o Training
o Employment law
 Regional training managers work with our managed portfolio of
properties to ensure all training activities are completely aligned with
Hilton brand standards. You can count on an accomplished team of
learning and development personnel to deliver first-rate training that
will yield the highest level of service for your guests. We have also
created a new Senior Vice President of Talent Management position
that will enhance upon our already successful efforts in this important
area of our business.


Asmaa Qassem 13/22 January 2011

 Measurement: LightStay, our
proprietary system, analyzes and reports
sustainability performance at each
property.

Reporting: We use a third party to

verify our system, processes, and
results. Just like a financial statement,
we can validate current performance
while establishing benchmarks for
continuous future improvement.
Learning: We understand the impact of
property level and corporate initiatives
and share best practices across the
global system.
Continuous Improvement:
Sustainability isn't a program. Instead,
sustainable actions are integrated into
how we deliver hotel performance
around the globe and a better
experience for our guests.

 Working For Hilton Hotels Corporation: With more than 2,800

hotels in 76 countries, Hilton Hotels Corporation offers nearly limitless
career opportunities in the hospitality industry. Team managers and
members are provided with the skills and tools they need for career
growth, current job satisfaction and a great experience for guests and
other team members. All employees also participate in Diversity &
Harassment Free Workplace training to ensure that all work together
to create & maintain a fair working environment. Career opportunities
may be available at corporate offices, as well as both management
and non-management positions in hotels, restaurants and other
facilities worldwide.
 Compensation & Benefits: Hilton Hotels Corporation provides a
competitive compensation package to all eligible employees, though
the package may vary by geographic location and job function. In the
U.S., employees might expect prescription drug, medical, dental &
vision coverage options, 401(k) plan, paid time off and a variety of
other work/life balance programs in their benefit package.
 Senior executives at Hilton believe that the training and ongoing
development of its employees is critical in order for the business to
stay ahead in a competitive global marketplace. Consequently,
learning is a major part of the company’s strategy.
 Hilton International is totally decentralized; splitting into countries,
cities and individual hotels. This meant that hundreds of managers
had to be convinced about the initiative - an exercise in which
SkillSoft played a fundamental role.
 International HRM Strategy
o Recruitment: Three different approaches available to managing
and staffing companies’ subsidiaries include an ethnocentric
approach, which will tend to use expatriates in key positions
abroad; a polycentric approach with the use of local nationals
wherever possible, and a geocentric approach with a mixture of
nationals, expatriates and third country nationals.
 In the ethnocentric approach, the cultural values and
business practices of the home country are predominant.
All the standards for evaluation and control are determined

Asmaa Qassem 14/22 January 2011

 centrally from the headquarters in the form of orders and
commands.
 The polycentric approach is in direct opposition. The
subsidiaries in each country are developed locally under
the supervision of local managers. It results in little
communication between headquarters and subsidiary.
 With the geocentric approach, organizations try to combine
the best from headquarters and the subsidiaries to develop
consistent worldwide practices. Manager selection is based
on competency rather than nationality. In regard to Hilton
Hotel Group, it tries to involve more integration between
centre and subsidiaries to ensure close co-operation
between the different parts of the chain, and implement
both universal and local standards for evaluation and
control.
 Hilton has for many years attempted to recruit and develop
a group of international managers from diverse countries.
These people constitute a mobile base of managers who
are used in a variety of facilities as the need arises.
o Development And Performance Evaluation: For the last few
years, Hilton has introduced a large number of HRM strategies
which focus on selecting, training and developing global managers
who understand the worldwide ramifications of their business and
can operate throughout the world.
The loss of employees is among the biggest issues facing modern-
day corporations. Hilton Hotel Group is one of the examples,
where managers work with closely with employees to detail their
career paths. Hilton continues to demonstrate that building a
satisfied and valuable workforce is not a quick-fix procedure, but
an integrated approach that permeates through every aspect of
the organization. Hilton tries to recognize the importance of
employee approaches and heavily invests in them.
o Recognitions And Rewards At Hilton: Through their “Espirit”
programme, Hilton International aims to make everyone feel
valued within their working environment. Its objectives are to
maintain high standards in human resources management and to
create a business culture in which everyone can grow and develop
their careers. To support this commitment, Hilton University has
been launched worldwide, covering a range of skills for the hotel
industry, from operational and technical to finance and general
management.
o The Hilton University: Founded in 2002, Hilton University
enables people around the world to fulfill their aspirations. “At
Hilton University, the personal growth of our people goes hand-in-
hand with the growth of Hilton itself. The University helps our
company set new standards for the global hospitality industry”.
 By recognizing the fact that, for the great majority of Hilton’s team
members, English is not their native language; in 2003 the company
gave 200 people the opportunity to improve their language skills by
accessing an on-line learning programme called GlobalEnglish. This
has proved to be a liberating experience for some employees –
especially those from under-developed and developing nations who
may not previously have had access to the sort of formal education
which is often taken for granted in the West.
 Fast Track Development with the Elevator programme. It is a fast-
track graduate development programme for Hilton International,
which started in 1998. Its aim is to prepare the right people for

Asmaa Qassem 15/22 January 2011

 General Management Roles, by bringing together a practical and
unique mix of business, hotel and people management skills.
 In Hilton, where employees are recognized as valued assets and
receive the training needed to assume greater responsibility, and
where their opinion is sought with regard to operational changes,
turnover rates are lower.
 Advantages and disadvantages of using local employees to staff
international subsidiaries:

Asmaa Qassem 16/22 January 2011

  Advantages and disadvantages of using expatriate employees to
staff international subsidiaries

 Most companies use expatriates only for such key positions as

senior managers, high-level professionals, and technical specialists.
Since expatriates tend to be very costly, it makes little financial sense
to hire expatriates for positions that can be competently filled by
foreign nationals. In addition, many countries require that a certain
percentage of the work force be local citizens, with exceptions usually
made for upper management.
o Measurable Results: Hilton selected 70 courses from SkillSoft’s
management, business and IT curricula, which SkillSoft delivers to
the company’s worldwide workforce through its in-built learner
management system, SkillPort. Hilton also subscribes to
Books24x7 so that it can offer a reference source to its 400+ IT
specialists, providing them with access to the latest IT
publications. As well as running and hosting SkillSoft content and
allowing Hilton to track learning on a local, regional and national
scale, SkillPort also delivers online courses from other learning
providers - acting as a branded, customized portal for easy access
to e-learning. Results to date are impressive, not only because of
the business benefits already achieved, but because e-learning
has proved a truly liberating experience for some employees -
especially those from under-developed and developing nations
who may not previously have had access to the sort of formal
education which is often taken for granted in the West. By
providing e-learning across its 380-strong hotel chain, Hilton has
found that staff are happier. And, according to Hilton, happy staff
= happy guests.
 Main Functions Of Ihrm
o Development And Training: At the international level, human
resource development professionals are responsible for:
 Training and development of employees located in
subsidiaries around the world,
 Specialised training to prepare expatriates for assignments
abroad, and

Asmaa Qassem 17/22 January 2011

  Development of a special group of globally minded
managers.
o Creation and transfer of international human resource
development programs may be carried out in two ways:
centralized and decentralized.
 With a centralized approach, training originates at the
headquarters and corporate trainers travel to subsidiaries,
often adapting to local situations. This fits the ethnocentric
model. A geocentric approach is also centralized, but the
training develops through input from both headquarters
and subsidiaries’ staff. Trainers could be sent from various
positions in either the headquarters or subsidiaries to any
other location in the company.
As global competition increases, it is increasingly important
for successful companies to have a group of managers with
a global perspective. Companies must identify managers
with global potential and provide them with various training
and development opportunities. For example, having one or
more international assignment(s), working on cross-
national teams and projects, and learning other languages
and cultures contribute to making a manager more globally
minded. In addition, an organization should include not only
parent-country nationals, but also host-country nationals
and third-country nationals in this group.
 The Hilton Hotel group is one company that has adopted a
balanced scorecard approach. It measures its Customer Relationship
Management performance by reference to 5 different sets of metrics:
operational effectiveness, revenue maximization, customer loyalty,
brand standards and learning and growth.
i. Information Systems (IS)
 The importance of Information Technology has grown
exponentially historically, and we are all aware this discipline will
continue to become even more essential to our business today and
tomorrow.
o Project review and oversight
o Investment and budget planning
o Technical counsel and support
o Supplier management
 Our success pooling talent and resources allows the IT team to
provide expertise in the areas of telecommunications, digital displays,
wired and wireless Internet projects and consultation, and
consolidated HSIA networking architecture.
b. Summary of Internal Factors
8- Analysis of Strategic Factors (SWOT)
 HHC, like all major hotel corporations, is continuing to recover from the
events of September 11th. This tragic human event also delivered a financially
devastating blow to the travel industry as a whole and to the hotel industry in
particular. In order to fully recover and thrive in the coming years, HHC must assess
its overall all strengths and weaknesses as it moves forward through the new
millennium. The following SWOT Analysis sheds some light on some of the pitfalls
and opportunities that await the Hilton Hotels Corporation.
o 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

Asmaa Qassem 18/22 January 2011

  HHC also possesses solid integration features such as owning the
companies that manufacture its furniture and has invested in online reservation
travel enterprises
o 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.
o 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
mid-priced markets
o 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.
 By studying national and regional industry trends, HHC will be able to
take advantage of opportunities that will enable growth while identifying threats that
may affect profitability. Growth in the hotel and hospitality industry will include a
continued focus on gaming, international expansion and using all media to promote
its products to potential customers. One recommended strategy for Hilton is to
emphasize the importance of family in all its hotels, including the gaming and casino
locations. Las Vegas has spent millions to attract families by adding children’s
attractions as well as the traditional casinos for the adults. Most of the hotels have
at least a small area dedicated to arcade games. However, some hotels have
elaborate arcades, game areas, and child-care centers intended for those traveling
with children (Hilton Hotels Corporation, 2007). Hilton needs to ensure they are right
in the middle of this demographic of parents traveling with children. While the focus
can still be on the high dollars that are tossed around in the casinos by the parents,
it will be critical that the hotel have the facilities available that will attract parents
with children to stay at the property. Since there is a greater demand and vacation
time has become one of the few times that families are able to spend quality time
together, Hilton must capitalize on this market segment.
a. Situational Analysis
o Strengths
 Strategy: established differentiation strategy.
 Structure: flat, decentralized structure.
 Skills: diverse range of service skills within management and staff.
 Style: strong, participative culture.
 Staff: specialized and experienced staff that are motivated and highly
skilled. A well trained team who are proud of their hotel and respect and promote
the brand values.
 Shared Values: clear and well communicated.

Asmaa Qassem 19/22 January 2011

  Brand Strength: brand values well represented engendering brand
loyalty amongst existing and new guests.
 Reputation: a strong reputation within the local market and corporate
and travel trade markets for reliability, exemplary service and quality.
o Weaknesses
 Strategy: differentiation strategy needs to be more clearly
communicated externally, within local and national markets.
 Systems: formal systems result from the detail oriented work and
environment. Interdepartmental communications could be improved.
 Staff: seasonal turnover requires ongoing training and orientation of new
staff.
 Facilities: certain rooms require renovation and upgrade as regards
technical equipment, such as high speed Internet access and laptop links.
o Opportunities
 Market: returning growth after a period of slump.
 Competitors: no direct competition exists at present, in terms of the five
star 'boutique business property' niche.
 Suppliers: strong, long-term relationships established with suppliers.
 Guest Dependency: repeat corporate business based on personal
service and quality, in a small but luxurious environment.
o Threats
 Market Entry: potential for a competitive, global brand to enter the
market with a similar product.
 Substitutes: fully furnished and serviced business apartments offering
lower daily rates.
 Economy: recovery from slight recession may take time.
b. Review of Mission and Objectives
9- Strategic Alternatives and Recommended Strategy
a. Strategic Alternatives
b. Recommended Strategy
10- Implementation: there are 3 keys to general implementation for Hilton in any given
case & these keys are:
1. A client research to confirm interest in a new approach & to
understand how the customer envisions the change
2. Involvement of the senior level into the new program right from
the beginning
3. A creation of a strategy to measure results
11- Evaluation and Control
a. Is the current information system capable of providing sufficient feedback on
implementation activities and performance? Can it measure strategic factors?
b. Are adequate control measures in place to ensure conformance with the
recommended strategic plan?
 Hilton Brand Power Brochure

Asmaa Qassem 20/22 January 2011

 Competitive Analysis
#1 #2 #3 #4 #5
Hilto Marrio Glenda Hyat Rivervie
Product and/or Service
n t le t w
Quality 6 7 4 8 9
Selection 5 7 5 6 9
Price 6 6 6 6 8
Other 0 0 0 0 0
Location and Physical Hilto Marrio Glenda Hyat Rivervie
Appearance n t le t w
Traffic 4 5 7 7 8
Appearance 4 7 6 8 9
Visibility 7 6 7 9 8
Convenience Factors 7 6 6 8 9
Other 0 0 0 0 0
Hilto Marrio Glenda Hyat Rivervie
Added Value Factors
n t le t w
Pre and Post Sales
3 5 4 7 9
Service
Experience 7 8 6 9 9
Expertise 6 7 5 8 9
Reputation 5 9 6 8 9
Image 6 9 4 8 8
Stability 6 8 4 9 9
Strategic Alliances 0 0 0 0 0
Other 0 0 0 0 0
Other Marketing Hilto Marrio Glenda Hyat Rivervie
Activities n t le t w
Established Sales
0 0 0 0 0
Channels
Advertising 0 0 0 0 0
Post-purchase Support 0 0 0 0 0
Incentives 0 0 0 0 0
Loyalty Components 0 0 0 0 0
Other 0 0 0 0 0
Total 72 90 70 101 113

Asmaa Qassem 21/22 January 2011

 Growth and Share
Growth
Competitor Price Market Share
Rate
Hilton $105 6% 20%
Marriot $115 8% 33%
Glendale Apts $105 6% 5%
Hyatt Residence $120 5% 12%
Riverview Hotel $105 8% 30%

Average $110.00 6.50% 20.00%

Total $550.00 32.50% 100.00%

 Hilton Worldwide’s experience and success owning its own portfolio of

hotels allows us to provide you with superior Owner Relations support. We
strive to strengthen our relationships with our owners by addressing key
concerns and issues, effectively responding, and proactively planning for
future resolutions.
o Management and lease agreements
o Contractual language interpretation
o Financing and lender requests
o Owner orientations
o Insurance planning
o Hilton Management Services can provide additional savings by
alleviating the cost of third parties who offer legal and other
consulting services involved in the ownership of a Hilton property.

Asmaa Qassem 22/22 January 2011