Download - Hilton FY 2010
HiltonFY 2010
Mars 2011
2
Marriott vs. its main competitorsR
oom
s ne
twor
k as
of F
Y 20
10
Source : Companies annual reports except for Hilton network, Accor internal data
88%
86%
85%
83%
68%
61%
56% 28%
208 Kr
366Kr
In ‘000 rooms
EMEA Americas
The 3rd largest global hotel group, the second if we include Timeshare segment (618 Kr)
647
613
605
~600
507
495
302
Network
13%19%
8% 9%
8%7%
10% 4%
16%
7%5%
20%19%
Roo
ms
pipe
line
as o
f FY
2010
In ‘000 roomsPipeline
A strong increase of pipeline vs. 2009
205
103
105
138
101
51
85
NB: Figures include traditional lodging and extended stay units but exclude timeshare products
APACVs
end 2009
-3%
-5%
+5%
+6%
0%
-24%
0%
(2)
(2) Hilton pipeline based on an internal press release, January 2011(1) Hilton geographical breakdown based on 2009 figures
(1)
Pipeline
Hilton – Company ProfileFY 20103
1. Company overview
Description
Main Figures Hilton Honors
Source: Euromonitor, Hilton press releases(1) 2009 figures
Ownership– 4th worldwide hotel player with one of the most recognized
brand worldwide• 3,600 hotels and vacation ownership / 600,000 rooms in 82
countries• 130,000 employees
– Funded in 1919, Hilton operates in 3 main segments• Traditional lodging industry• Extended stay segment• Timeshare segment
– Mainly US hotel player (≈ 80%)• Biggest “asset heavy” US hotel player (≈ 20%)• US pipeline leader
– 10 brands from Midscale to Luxury:– Operating type: Owned and Lease (5%), Mgnt (46%), Franchise
(69%)
– World hotels share (2010): 4.0%– In 2010 Hilton opened 178 hotels (more than 24,000 rooms)
and signed agreements for more than 230 hotels (>44,000 rooms)
– The world’s leading frequent-guest program– 27 million members– More than 2.5 million new members in 2010
– It is the only program of its type to offer its members– the ability to earn points and miles for the same hotel – enjoy hotel rewards with No Blackout dates or capacity
controls– to redeem points for free nights at any of the more than
3,500 properties within the Hilton Worldwide portfolio of hotels.
– 100 % private equity: Blackstone Group LLP – Acquisition for M$26 in 2007, taking the group private and
removing the requirement to report on its financial results.
– Blackstone reportedly organizing the financial records of Hilton Worldwide in a preliminary step toward floating the company on the international markets. Blackstone is leaning toward selling Hilton Worldwide as a complete unit.
5%
26%
69%
Operating type
Owned & LeaseMgntFranchise
89%
2%6% 2% 1%
Geographical Breakdown
North America
Latin America
Europe
APAC
MEA
# rooms
Mid-Lux. 3,793 623,114
# hotelssegment
Hilton – Company ProfileFY 2010
4
LimitedService
FullService
ExtendedStay
Timeshare
Lodging Extended Stay Timeshare
ServicedApartments
Luxury
Upscale
Midscale
Source: Accor data extracted from Hilton Website as of March 2011
2. Brand positioning
24 h24 h19 h
561 h
247 h
208 h
512 h
1864 h
307 h
2 h
49 h
5
3. Room portfolio
H R H R H R H RH R
Luxury 43 16 131 375 8 2 974 18 6 987 4 1 546 2 743 11 3 882Waldorf = Astoria Collection Luxury 24 9631 401 4 1 605 14 5 618 3 1 204 1 401 2 803Conrad Hotels Luxury 19 6 500 342 4 1 368 4 1 368 1 342 1 342 9 3 079Upscale 1 016 315 697 311 177 61 515 675 197 844 41 13 423 51 17 940 72 24 975Hilton H&R Upscale Sofitel 561 201 960 360 156 56 160 266 95 760 29 10 440 47 16 920 63 22 680Double Tree Upscale Pullman 247 62 985 255 21 5 355 208 53 040 5 1 275 4 1 020 9 2 295Embassy Suites Upscale 208 50 752 244 201 49 044 7 1 708Midscale 2 376 252 816 106 26 3 211 2 328 247 215 20 2 116 1 137 1 137Hilton Garden Inn Ltd-Service Novotel 512 70 144 137 17 2 329 489 66 993 4 548 1 137 1 137Hampton Inn & Suites Ltd-Service 1864 182 672 98 9 882 1839 180 222 16 1 568Total Lodging 3 435 584 644 170 211 67 700 3 021 452 046 65 17 085 54 18 820 84 28 994Extended Stay 309 33 970 110 0 0 308 33 860 1 110 0 0Homew ood Suites Up. Upscale 307 33 770 110 306 33660 1 110 12 1 320Home2 Midscale 2 200 100 2 200Timeshare 49 4 500 92 4 367 40 3 673 5 459 0 0 0 0Hilton Grand Vacations Upscale 49 4500 92 4 367 40 3673 5 459
Total 3 793 623 114 167 215 68 067 3 369 489 579 71 17 654 54 18 820 84 28 994
Hotel avSize
Geographical repartition (italic=estimation)Europe North America Latin America Af. Mdle-East Asia Pac.Breakdown
by brand CategoryACCORBrand
(for example) Hotels Rooms
Hilton – Company ProfileFY 2010
Source: Accor data extracted from Hilton Website as of March 2011
6
4. Geographical breakdown
Hotel and room network3,793 h / 623 KrAs of March, 2011
% of global network in nb of hotels
NorthAmerica3,339 h Europe
215 h
SouthAmerica
71 h
Asia / Pacific84 h
MEA54 h
X%
89%
6%
2%
• USA: 594 h• Canada: 37 h
• UK: 73 h• Italy: 20 h• Germany: 17 h• France: 8 h
• China: 23 h• Australia: 10 h• Thailand: 7h• India: 6 h
• Egypt: 17 h• UAE: 11 h• Saudi Arabia: 6 h
• Mexico: 30 h
Source: Accor data as of March 2011(1) incl. upper-upscale brands Waldorf and Conrad
1 %
88%
12%
31%
69% 99%
1%
98%
2%
MidscaleUpscale
72%
28%
Hilton – Company ProfileFY 2010
2%
(1)
7
Development in 2010 Hilton opened 178 hotels with more than 24,000 rooms and signed management agreements or franchise
agreements on more than 230 hotels with more than 44,000 rooms, despite the economic downturn. 2010 saw Hilton Worldwide claiming to be the largest hospitality company in the US by number of rooms. The company’s luxury presence, which includes Waldorf Astoria Hotels & Resorts and Conrad Hotels &
Resorts, tripled over 2007-2010 in terms of current supply and pipeline combined. Europe: 22 h. openings in 2010 (50 for the last three years) , with 3,366 r.
Pipeline By the end of 2010 Hilton Worldwide had a global pipeline that included 868 hotels and more than 138,000 rooms
[23% of its existing portfolio]. Pipeline outside the US increased by nearly 40% in 2010 in terms of number of rooms, with the Asia Pacific and
Middle East and Africa regions combined increasing 52%. Hilton increased the percentage of its total pipeline of rooms outside the US from 15% in 2007 to approximately
50% by the end of 2010, and the percentage of its rooms under construction outside the US grew from 11% in 2007 to 73% by the end of 2010.
Hilton – Company ProfileFY 2010
5. Pipeline and lodging development
Sources: Hilton Press Release as of January 24th, 2011*Lodging Econometrics Q4 2010
Group Pipeline by Region*
21% 56%
3%
20%
North America
EMEA
APAC
Latin America
8Hilton – Company Profile
FY 2010
6. Group strategyGlobal Expansion plan 2011-2015
Hilton intends to nearly double its footprint in Latin America (37 units as at March 2010) over 2011-2015.
Brazil is at the centre of Hilton’s interests, as the country will host large international sporting events such as the Football World Cup and the Olympic Games.
Other main gateway cities in Latin America such as Buenos Aires (Argentina), Santiago (Chile), Lima (Peru), Caracas (Venezuela), and Bogota (Colombia) are also of interest given potential short to medium term growth.
Although all brands are present in Latin America, Hilton has decided to focus on four brands – Hilton, DoubleTree, Hilton Garden Inn and Hampton. The latter is set to debut a brand new prototype designed exclusively for the Latin American market, being cost-effective to build and suited to guests’ needs for greater flexibility.
China and India Over 2011-2015, Hilton plans to open more than 180 hotels in the
Asia Pacific region through a multi-brand strategy that includes its mid-price, upscale and luxury brands.
China: Hilton intends to grow from 11 to more than 90 hotels over the period.
− In 2010, Hilton Worldwide signed eight management agreements with Shimao Group, a China-based real estate development conglomerate, for eight new hotels in eight key Chinese cities (properties are slated to start operations in 2011-2014).
India: to grow from 2 to over 60 hotels.− A joint venture with DLF Limited aims to develop hotel
properties and serviced apartments in India, with plans to develop and own 50-75 mid-scale and extended stay hotels in the market by 2014.
Latin America
Middle-East / North Africa Presence to be doubled by 2014 21 new properties opening across the region by 2014, four of
them being located in the UAE
Europe Largest pipeline across the region: 15,411 r. in active pipeline and
8,643 r. under construction Strategic development markets: UK, Germany, Italy and Turkey Multi-brand approach: in Germany alone, three new brands
have been launched almost simultaneously: Hampton by Hilton, Waldorf Astoria H&R and Hilton Garden Inn
Sources: Euromonitor, Press Review(1) Hilton Press release as of March 10, 2011
(1)
9
– Hilton’s brand portfolio has recognised strengths in upscale, luxury and mid-scale, particularly in the US
– The addition of the Home2 suites reinforces the mid-tier and permits a Hilton guest to climb through the chains from Hampton to the Astoria
– Brand awareness– Worldwide scope– Mix operating type
Strengths
– Despite its portfolio strength, the majority of Hilton hotels are still located in the US. Such reliance on a single market made Hilton vulnerable to the recession that slashed its domestic market
– Early in 2010, Starwood won its legal case against Hilton (Accusation of theft of 10,000 documents from two former Starwood’s employees). Hilton has been fined and its business restricted for two years (no brand can be launched on the lifestyle market, as an answer to W brand)
Weaknesses
– Opportunity to develop rapidly the Home2 Suites brand as a result of its compact size and low development costs
– Hilton to benefit from its investments on applications for Iphone and Itouch
Opportunities– Lack of credit available in the US may hinder overall
expansion of Hilton’s luxury brand portfolio in the years to come
– Strong reliance on business travellers negatively impacted Hilton Worldwide’s 2008 and 2009 performance
Threats
7. SWOT analysis
Source: EuromonitorHilton – Company Profile
FY 2010
Lodging Brands
Waldorf = Astoria
Conrad
Embassy Suites
Hilton
DoubleTree by Hilton
Hilton Garden Inn
Hampton
Extended StayHomewood Suites
Home2 Suites
Timeshare Hilton Grand Vacations
Hilton – Company profileFY 2010
10 Source: Hilton Website
8. Brands description
11
8. Brands descriptionFull-service – Waldorf=Astoria
Overview
Full service, Luxury►Landmark hotels offering “worldly sophistication
and unparalleled guest service”►Flagship: Waldorf=Astoria in New York, acquired in
1949 by Conrad N. Hilton
Highlights►Culinary excellence, innovative services, and
individualized service►12 world-class golf experiences►20 sumptuous spas
Main competitors►The Ritz Carlton, Four Seasons, Fermont Hotels
Network
Network► 23 hotels, 9,631 rooms► Av. Size: 401 r.
Locations► World’s capitals and gateways
Geographical Breakdown► Footprint mainly US (14/23) but international
expansion on its way (opening of two new hotels in London and Berlin forecast in 2011)
Pipeline► 7 h. / 1,176 r.
Source: Hilton Website(1) Graph based on nb of h. as of March 2011(2) Lodging Econometrics Q4 2010 (graph based on nb of r.)
Hilton – Company profileFY 2010
4%
17% 58%
13%8%
North AmericaEuropeAPACLatin AmericaMEA
19%
55%11%
15%
North AmericaEuropeAPACLatin AmericaMEA
(1)
(2)
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8. Brands descriptionFull-service – Conrad
Overview
Full service, Luxury►Global contemporary luxury and lifestyle brand►Striking design, distinct surroundings, as dynamic
reflection of the destination city and culture
Highlights►Breathtaking views►Spacious and luxurious guest rooms with superb
quality amenities►Modern style, pioneering culinary concepts,
sophisticated bars and restaurants and leading technology
Main competitors►Autograph Collection, The Luxury Collection
Network
Network► 18 hotels, 6,500 rooms► Av. Size: 342 r.
Locations► World’s gateway cities, most sought-after resort
destinations
Geographical Breakdown► Global Footprint (strong presence in Asia)
Pipeline► 13 h. / 3,503 r.
Hilton – Company profileFY 2010
Source: Hilton Website(1) Graph based on nb of h. as of March 2011(2) Lodging Econometrics Q4 2010 (graph based on nb of r.)
5%
21%
21%5%
48%
North AmericaEuropeAPACLatin AmericaMEA
16%5%
13%
66%
North AmericaEuropeAPACLatin AmericaMEA
(1)
(2)
13
8. Brands descriptionFull-service – Embassy Suites Hotels
Overview
Full service, Upper-upscale►Upper-upscale all suites hotels
Highlights►Every room is a spacious two-room suite to relax
and spread out, which includes the EmbassyEssentials Bedding Collection
►Fitness center►Complimentary Manager’s Reception is held
every evening, featuring beverages and lightappetizers.
Main competitors►Differentiated product: niche market
Network
Network► 208h, 50,752 suites► Av. Size: 244 r.
Locations► Gateway cities
Geographical Breakdown► Mainly US (only 9 h. outside)
Pipeline► 35 h. / 7,121 r.► US mainly
Hilton – Company profileFY 2010
Source: Hilton Website(1) based on nb of h. as of March 2011(2) Lodging Econometrics Q4 2010
(1)
(2)
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8. Brands descriptionFull-service – Hilton
Overview
Full service, Upper-upscale►One of the most recognized name in the industry►One of the leader of hospitality (hotels in 76
countries)►Flagship brand of Hilton worldwide
Highlights►Hilton’s journey Ambassador program, which
stresses personal care and attention for each and every guest
►Diverse portfolio includes premium hotel offerings for convention, business and leisure travelers –from the 1,400 SF room Hilton Orlando boasting175,000 SF of meeting space to the majesticHilton Bora Bora Nui Resort and Spa featuringover water villas
►In-room Hilton Serenity Collection features theHilton Serenity Bed, linens and custom-designedhammered stainless steel accessories
Main competitors►Sofitel, Grand Hyatt, Intercontinental, Westin,
Conrad
Network
Network► 561 hotels, 201,960 rooms► Av. Size: 360 r.
Locations► Most of the major cities worldwide
Geographical Breakdown► Global Footprint: 79 countries
Pipeline► 112 h. / 33,934 r.
Hilton – Company profileFY 2010
Source: Hilton Website(1) based on nb of h. as of March 2011(2) Lodging Econometrics Q4 2010 (graph based on nb of r.)
8%
28%
48%
5%11%
North AmericaEuropeAPACLatin AmericaMEA
23%16%
11%
6%
44%
North AmericaEuropeAPACLatin AmericaMEA
(1)
(2)
15
8. Brands descriptionFull-service – Double Tree (1/2)
Overview
Full service, Upscale►First hotel outside North America in 2008, fast
growth worldwide since (presence in 15 countries)►Since international roll out in 2008, separate
identities: DoubleTree in North America vs. DoubleTree by Hilton outside
►In 2011, introduction of a new DoubleTree by Hilton global identity, thus proving the power of the affiliation:
• Homogenization of brand identity under “DoubleTree by Hilton” worldwide,
• while requiring rebranding of over 80% of existing network
Highlights►Meeting and event facilities at Doubletree hotelsand resorts range from 2,500 to 150,000 squarefeet
►Fitness facilities►One of the fastest growing upscale brands
(network grew by more than 40% since 2000)
Main competitors►Pullman, Sheraton, Marriott H&R, Grand Plaza,
Hyatt Regency
Network
Network► 247 hotels, 62,985 rooms► Av. Size: 255 r.
Locations► Gateway cities, metropolitan areas, vacation
destinations
Geographical Breakdown► Mainly US but global expansion on its way
Pipeline► 50 h. / 10,289 r.
Hilton – Company profileFY 2010
Source: Hilton Website(1) based on nb of h. as of March 2011(2) Lodging Econometrics Q4 2010 (graph based on nb of r.)
2%9%
83%
2%4% North America
EuropeAPACLatin AmericaMEA
8%
30%
17%2%
43%
North AmericaEuropeAPACLatin AmericaMEA
(1)
(2)
16
1969 1999 2008 2011
• Creation of DoubleTree Hotels in the US
• Global rebranding initiative : Addition of “by Hilton” to the brand name for every DoubleTree hotel
• Objective to further reinforce the brand’s affiliation to Hilton Worldwide and to be able to communicate with a unified worldwide look
• First hotel out of North America, under Doubletree by Hilton brands.
• Beginning of the distinction between DoubleTree in North America vs. DoubleTree by Hilton outside North America.
• Merger between Hilton Hotels Corporation and Promus Hotels Corporation, DoubleTree’s parent company
DoubleTree by Hilton is worldwide brand of upscale, full-service hotels and resorts :– First hotel outside North America in 2008, fast growth worldwide since (presence in 15 countries)– Since international roll out in 2008, separate identities: DoubleTree in North America vs. DoubleTree by Hilton
outside– In 2011, introduction of a new DoubleTree by Hilton global identity, thus proving the power of the affiliation
Homogenization of brand identity under “DoubleTree by Hilton” worldwide, while requiring rebranding of over 80% of existing network: 178 hotels in North America vs. 40 hotels outside NA.
8. Brands descriptionFull-service – Double Tree (2/2)
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8. Brands descriptionLimited service – Hilton Garden Inn
Overview
Limited service, Midscale►Upscale, focused service brand, provides a range
of amenities for business guests, ensuring they have everything they need to be productive on the road
►Global expansion in key markets in Europe (UK, Germany, Italy) and APAC (India and China)
Highlights►Meeting rooms►Snacks available►Swimming pool and fitness center available in
most hotels
Main competitors►Novotel, Hilton Garden Inn, Ramada, Holliday Inn,
Hyatt Place
Network
Network► 512 hotels, 70,144 rooms► Av. Size: 137 r.
Locations► All major and secondary cities in the US
Geographical Breakdown► Mainly North America
Pipeline► 145 h. / 21,436 r.
Hilton – Company profileFY 2010
1%
25%64%
1%9%
North AmericaEuropeAPACLatin AmericaMEA
(1)
0%3%
96%
1%0% North America
EuropeAPACLatin AmericaMEA
Source: Hilton Website(1) based on nb of h. as of March 2011(2) Lodging Econometrics Q4 2010 (graph based on nb of r.)
(2)
18
8. Brands descriptionLimited service – Hampton
Overview
Limited service, Midscale►Hampton brand was refreshed in 2004, unveiling
more than 60 new products and standards.►Hampton Inn & Hampton Inn & Suites
Highlights►Crisp and cozy bed►Fitness room
Main competitors►Courtyard, Fairfield Inn, Holliday Inn Express
Network
Network► 1,864hotels, 182,672 rooms► Av. Size: 98 r.
Locations► All major and secondary cities in the US
Geographical Breakdown► Mainly North America (99%)► Strongest in the US, in 2009 Hampton opened
its first “Hampton by Hilton” hotel in the UK
Pipeline► Mainly North America► 332 h. / 33,338 r.
Hilton – Company profileFY 2010
(1)
(2)
Source: Hilton Website(1) based on nb of h. as of March 2011(2) Lodging Econometrics Q4 2010
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8. Brands descriptionExtended stay – Homewood Suites
Overview
Extended stay, Limited service, Upscale►More than 275 h. throughout the US, Canada and
Mexico►Comfortable and home-like accomodations when
travelling for an extended stay
Highlights►Separate living and sleeping areas►Fully-equipped kitchens►Complimentary internet►Evening meals Monday-Thursday
Main competitors►Hawthorn Suites, Residence Inn, Baymont Inn &
Suites, Summerfield Suites
Network
Network► 307 h., 33,370 r.► Av. Size: 110 r.
Locations► Selected key cities
Geographical Breakdown► North America only (1 in Latin America)
Pipeline► 67 h. / 7,339 r.► 2 projects in India
Hilton – Company profileFY 2010
Source: Hilton Website(1) based on nb of h. as of March 2011(2) Lodging Econometrics Q4 2010
(1)
(2)
20
8. Brands descriptionExtended stay – Home 2
Overview
Extended stay, Limited service, Midscale►Newest focused service brand, mid-tier extended
stay chain, more affordable version of Hilton’s Homewood Suites
►Average rates around $100, while the basics of extended stay such as common public areas to foster guest interaction as well as on-site amenities like pools and fitness centres will be kept
►Nearly 80% of its rooms will be studios and the remaining 20% one-bedroom suites
►Home2 Suites is in line with Hilton´s strategy to diversify its consumer base and attract a wider range of travellers, including women, young people and leisure guests.
►100% franchise operating type
Highlights►Separate living and sleeping areas►Industry-unique “working wall”
which incorporates the kitchen and a flexibleworking/media space
►Fully accessorized kitchen
Main competitors►Marriott's TownePlace Suites and
InterContinental's Candlewood Suites
Network
Network► The first Home2 Suites opened 7 February 2011
in Fayetteville, NC. 54 more are planned, with 30 more in the pipeline, and five properties are under construction -- to open in 2011 or early 2012.
► Ambition to open about 100 hotels by the end of 2013 in the US, Canada and Mexico
Locations► Selected key cities
Geographical Breakdown► USA only
Pipeline► 61 h. / 6,046 r.(US only)
Source: Hilton Website, Euromonitor(1) Lodging Econometrics Q4 2010
Hilton – Company profileFY 2010
(1)
21
8. Brands descriptionTimeshare – Hilton Grand Vacations
Overview
Timeshare, Upscale►New affiliation programme called ‘capital light’,
under which Hilton Grand Vacations will assume responsibility for Grand Pacific MarBrisa timeshare sales and marketing, on a “fee-for-service” basis
Highlights►Studios and spacious 1, 2 and 3 bedroom
accommodations ►On-property amenities may include: swimming
pool, spas, exercise facilities, sports courts, videoarcades and restaurants
Main competitors►Marriott Vacation Club
Network
Network► 38 properties, 4,500 rooms
Locations► Select vacation destinations
Geographical Breakdown► Mainly North America (4 properties in Europe,
including 3 in Scotland)
Source: Hilton Website Hilton – Company profileFY 2010