About PROMUS OPERATING LLC

If you need a bed for the night, Hilton has a few hundred thousand of them. The company is one of the world's largest hoteliers with a lodging empire that includes about 4,900 hotels and resorts in more than 100 countries operating under such names as Doubletree, Embassy Suites, and Hampton Inn, as well as its flagship Hilton brand. Many of its hotels serve the mid-market segment, though its Hilton and Conrad hotels offer full-service, upscale lodging. In addition, its Homewood Suites chain offers extended-stay services. The company franchises many of its hotels; it owns the Waldorf-Astoria brand and the New York Hilton. Hilton became a public company again in 2013.

Operations

With its extensive portfolio of brands, Hilton seeks to serve multiple segments within the lodging sector. The company's largest chains, Hampton Inn and Hampton Inn & Suites, include about 2,200 locations and target mid-market travelers with moderately priced rooms and limited amenities. Nearly all its Hampton hotels are operated by franchisees or by the company under management contracts with third-party owners.

At the other end of the scale, the company's Conrad chain offers luxury services and distinctive locations, while its Waldorf-Astoria Collection is a prestigious collection of hotels inspired by the New York landmark. The company's Hilton Grand Vacations subsidiary operates about 45 time-share vacation resorts, with a concentration located in Florida.

Geographic Reach

Even though the company has hotels all over the world, it generates about 80% of its sales in the US.

Sales and Marketing

Hilton relies on traditional advertising and promotions along with a variety of direct marketing techniques such as email, social media marketing, and postal mailings to drum up business. A fair amount of the company's hotel rooms get booked through internet travel intermediaries. Hilton pays commissions and transaction fees for sales of rooms through such services. The company also has a robust customer loyalty program it uses to try to generate return business.

Financial Performance

Hilton has maintained steady revenue growth for the past several years. In fiscal 2016, revenue increased by slightly compared to fiscal 2015. The company reported revenue of $11.66 billion for fiscal 2016 after reporting $11.27 billion in revenue the prior fiscal year.

The company's net income was $1.4 billion in fiscal 2015, but it dropped to just under $350 million in fiscal 2016. The decreased net income was the result of increased operating expenses. Hilton's cash flow remained strong in fiscal 2016 despite the dip in net income.

Strategy

The company continues to expand its global footprint and its timeshare business. In January 2016 Hilton launched its newest midscale brand, Tru by Hilton. Each Tru by Hilton property includes various social spaces in a large first floor lobby.

In February 2016 the company announced a plan to separate a substantial portion of its ownership business, consisting primarily of its owned hotels located in the US along with its timeshare business from Hilton, to form two additional new publicly traded companies.

Mergers and Acquisitions

In 2015 Hilton sold its Waldorf Astoria New York hotel for $1.95 billion. The company used the proceeds from the sale to acquire five other hotel properties.

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PROMUS OPERATING LLC

755 Crossover Ln
Memphis, TN 38117-4906
Phone: 1 (901) 374-5000

Stats

  • Employer Type: Public
  • General Manager: Smith Branstad
  • Chief Technical Officer: John Flack
  • Senior Manager: Rochelle Raven
  • Employees: 7,140

Major Office Locations

  • Memphis, TN