4. Background & History
1919
1927
Conrad
Hilton
bought
first hotel
First hotel
to add
amenities
1946
Hilton
Hotels
Corporation
goes public
Multi-hotel
reservation
system
1948
1957
Marriot
enters
industry
Hyatt
founded
1959
First
airport
hotel
opened
1929 - 1939
Great
Depression
Introduction Background & History Mission Statement Opportunity Statement
5. Background & History
1962
1964
Hyatt goes
public
Hilton
International
Corporation
splits to go
global
Barron
Hilton
replaces
Conrad
Hilton as
President
1967
1973
Hilton has
customer
service
breakthrough
Introduces
HHonors
loyalty
program
1987 1995
First Hilton
website
launches
Hilton
International
sold
Conrad Hilton
passes away
1979
Introduction Background & History Mission Statement Opportunity Statement
6. Background & History
1996
2006
Stephen
Bollenbach
is first
non-Hilton
CEO
Hilton
International
reacquired
Blackstone
Group buys
Hilton and
goes private
2007
2008
Airbnb
founded
Lightstay
introduced
2009
2013
Hilton
returns to
NYSE
Christopher
Nassetta
becomes
president
and CEO
Become
Hilton
Worldwide
and changes
HQ
Hilton
launches a
vacation
subsidiary
2002
Introduction Background & History Mission Statement Opportunity Statement
8. Mission Statement
“To be the preeminent global hospitality company - the first choice of guests, team
members, and owners alike.”
Background & History Mission Statement Opportunity Statement Sustainable Competitive Adv.
10. Opportunity Statement
The hospitality industry is highly competitive, filled with pricing and sales
promotions, resulting in price wars. In this industry, Hilton possesses a pristine
brand image that has the ability to be further leveraged in order to differentiate itself
from competitors in the future. With the current influx of consumers in the lodging
industry, Hilton is now presented the opportunity to further utilize its intellectual
capital and create sustainable competitive advantage.
Mission Statement Opportunity Statement Sustainable Competitive Adv. Significance to Leadership
12. Sustainable Competitive Advantage
A long-term competitive advantage that is not easily duplicated by other competitors.
This is developed by solidifying a pristine brand image, utilizing intellectual
capital, offering exceptional services, and strengthening customer loyalty.
Opportunity Statement Sustainable Competitive Adv. Significance to Leadership Research Methodology
14. Significance To Leadership
Hilton is a part of a highly competitive and fast growing industry in hotel service.
As a result, we have uncovered new forms of underleveraged resources within the
company and have developed detailed programmatic recommendations that will
maximize these forms of sustainable competitive advantage.
Sustainable Competitive Adv. Significance To Leadership Research Methodology Expected Outcomes
20. Leadership
● Three Presidents; Nine Executive Vice Presidents
● Most have worked with Hilton eight years or less
● High levels of experience in the hospitality industry
Joe Berger Kristin Campbell
Christopher Nassetta
Kevin JacobsIan Carter Jim Holthouser
William
Margaritis
Matt Richardson Martin Rinck Matthew Schuyler Chris Silcock Simon Vincent Mark Wang
Expected Outcomes Leadership Corporate Culture Human Resources Management
21. Conrad Hilton
● CEO & Founder of Hilton
● Emphasis on innovation and empowerment
● Focus on charity and developing the community
“Success seems to be connected with action. Successful people keep
moving. They make mistakes, but they don't quit.”
“Enthusiasm is a vital element toward the individual success of every man or
woman.”
“The practice of charity will bind us... will bind all men in one great
brotherhood.”
(CEO 1919-1967)
Expected Outcomes Leadership Corporate Culture Human Resources Management
22. Stephen Bollenbach
● Prior CEO of Hilton
● Worked as Donald Trump’s CFO
● Worked with Disney & Marriott as CFO & Treasurer
● Recruited by Barron Hilton in 1996
● Focused on making profit with every decision
“There are a lot of bargains out there, ... Every acquisition you make is
accretive to earnings. It's a real value creator.”
“We want to continue getting out of the real estate business and more into the
fee business.”
(CEO 1996-2007)
Expected Outcomes Leadership Corporate Culture Human Resources Management
23. Christopher Nassetta
● Previously worked for Host Hotels and Resorts as COO
○ Later became CEO
● Hired by Jonathan Gray of Blackstone Group as President
and CEO for Hilton in 2007
● Made a worldwide Hilton tour
● Began changes in organizational structure
“People were living in ivory towers. Some in Beverly Hills. We didn’t have
the connectivity. The hotels were saying, ‘Leave us alone. I don’t like you
corporate types.’ We had become siloed.”
(CEO 2007-Present)
Expected Outcomes Leadership Corporate Culture Human Resources Management
24. Christopher Nassetta
● Implemented a corporate wide CRM system
● Emphasis on leveraging intellectual capital
● Customer focused
“Even the posters listing corporate guidelines differed from hotel to
hotel, driving Nassetta — who puts great stock in business culture —
crazy.”
“There was a lot of what he did that was simply listening to the customer.”
Expected Outcomes Leadership Corporate Culture Human Resources Management
(CEO 2007-Present)
25. Joe Berger
● Executive Vice President and President of the Americas
● Oversees the operations of over 350 corporately owned Hilton
hotels in the Americas
● Graduated with a masters degree in finance
● Career in the Hotel Industry
○ Prior to Hilton, four years at LXR as Co-President
○ Worked internationally in operations and finance for
Marriott
(VP 2007-Present)
Expected Outcomes Leadership Corporate Culture Human Resources Management
26. William (Bill) Margaritis
● Oversees corporate branding, internal and external
communications, government relations, issues and crisis
management, and corporate responsibility programs
● Been with the company since August 2015
○ Spent prior fifteen years at FedEx as Senior Vice
President, Global Communications & Investor Relations
■ One of the only Executives without hospitality
experience
● Graduated from Michigan State with a degree in business
(VP 2015-Present)
Expected Outcomes Leadership Corporate Culture Human Resources Management
27. William (Bill) Margaritis
"As we continue to gain momentum and accelerate our growth around the world, finding
additional ways to reach, engage and connect with our most critical stakeholders becomes even
more important. Bill’s breadth of experience and his broad understanding of global business and
markets will help us build, strengthen and execute an integrated strategy across Hilton that will
enhance our industry leadership position and our ability to differentiate ourselves in the
marketplace.”
- Christopher Nassetta
Background & History Mission Statement Opportunity Statement Significance of LeadershipExpected Outcomes Leadership Corporate Culture Human Resources Management
28. Chris Silcock
● Leads the company's global commercial team, including sales,
revenue management, regional marketing and eCommerce,
and Hilton reservations and customer care
● Twenty years in Hilton
○ Began his career with Hilton as a catering and banquet
waiter
○ Head of Sales and Revenue Management
○ Head of Online and Regional Marketing
● Degree in Computer Studies from University of Essex
(VP 1995-Present)
Expected Outcomes Leadership Corporate Culture Human Resources Management
30. Values
Hospitality “We're passionate about delivering exceptional guest experiences.”
Integrity “We do the right thing, all the time.”
Leadership “We're leaders in our industry and in our communities.”
Teamwork “We're team players in everything we do.”
Ownership “We're the owners of our actions and decisions.”
Now “We operate with a sense of urgency and discipline.”
Leadership Corporate Culture Human Resources Management Operations
31. Corporate Culture
Leadership Corporate Culture Human Resources Management Operations
Hilton’s Diversity Statement
“Our priority is to understand and embrace unique global cultures to ensure that our Team
Members are seen, heard, valued and respected. As a result, our senior leadership is committed
to investing in programs that promote diversity such as, inclusion training and celebrations of
international traditions and customs. Globally, we also aim to increase our presence in local
communities through employee volunteerism, partnerships and giving programs.”
“Ultimately, I have a very simple philosophy on diversity: It is what allows us to perform and
deliver for our customers and, frankly, outperform the competition.”
- Christopher Nassetta
32. Internal Diversity Programs
● Executive Diversity Council
● Team Member Resource Groups
● Diversity Compliance Training
○ Diversity, Inclusion You e-Training course
● Internal Communications
“As a part of our commitment to diversity and inclusion, we created the Executive Diversity Council,
comprised of the company's most senior leaders, and chaired by our President and CEO, Christopher J.
Nassetta. The Executive Diversity Council provides oversight and direction to the overall diversity
strategy related to our culture, talent and marketplace.”
- Christopher Nassetta
Leadership Corporate Culture Human Resources Management Operations
33. Organizational Structure
Christopher Nassetta
CEO
Jim Holthouser
Kevin Jacobs
Matthew Schuyler Simon VincentMatt Richardson
Kristin Campbell Ian Carter
Martin Rinck
Mark Wang
William Margaritis
EVP Corporate Affairs
Joe Berger
EVP, President, Americas
Chris Silcock
EVP and CMO
Middle Management
Staff Members
Leadership Corporate Culture Human Resources Management Operations
34. Organizational Structure
Leadership Corporate Culture Human Resources Management Operations
“People were living in ivory towers. Some in Beverly Hills. We didn’t have the
connectivity. The hotels were saying, ‘Leave us alone. I don’t like you corporate types.’
We had become siloed.”
- Christopher Nassetta
36. Human Resources
Corporate Culture Human Resources Management Operations Finance
“You first have to get the right people on the bus, get the wrong people off the bus, make sure the
right people are in the right seats before you decide where you’re driving the bus’ … that was a
philosophy that I followed.”
- Christopher Nassetta
37. Human Resources: Recruiting
● Core School Alliances
○ 16 schools where recruiters look for potential interns
● Career page
○ Indeed.com
● Hilton Worldwide University
Corporate Culture Human Resources Management Operations Finance
38. Human Resources: Hiring
Corporate Culture Human Resources Management Finance Marketing
● Application is online
○ Resume sent to different departments
Corporate Culture Human Resources Management Operations Finance
39. Human Resources: Training
● Part-Time: 20 hours
● Full-Time: 45 hours
● Hilton Worldwide University
○ Five Different Colleges
Corporate Culture Human Resources Management Finance MarketingCorporate Culture Human Resources Management Operations Finance
40. Human Resources: Training
Corporate Culture Human Resources Management Finance MarketingCorporate Culture Human Resources Management Operations Finance
41. Human Resources: Retaining
“Our Team Members are at the heart of our success and we are committed to ensuring Hilton is a
place where they can grow both personally and professionally.”
-Christopher J. Nassetta
Corporate Culture Human Resources Management Finance MarketingCorporate Culture Human Resources Management Operations Finance
42. Human Resources: Retaining
● Professional development opportunities
● Nassetta’s annual “Catch Me at My Best”
● 30 paid days of holiday/vacation
● Tuition reimbursement of $1200
● GED Assistance Program
● Parental Leave Program
Corporate Culture Human Resources Management Finance MarketingCorporate Culture Human Resources Management Operations Finance
44. Operations: Overview
● HQ in McLean, Virginia
○ Previous HQ was in Beverly
Hills, California until 2009
● Total of 157,000 Team Members
around the world
Human Resource Management Operations Finance Marketing
45. Operations: Statistics
Brand Hotels Total Rooms
Hilton 560 28.1%
Hampton 2,005 27.8%
Doubletree 410 14.1%
Hilton Garden Inn 618 12.0%
Human Resource Management Operations Finance Marketing
52. Human Resources Management Finance Marketing Conclusion
Income Statement - Numbers in Millions
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
53. Human Resources Management Finance Marketing Conclusion
Balance Sheet - Numbers in Millions
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
54. Current Ratio
Measures a company’s ability to
pay short-term obligations
Current Assets
Current Liabilities
Human Resources Management Finance Marketing Conclusion
Short-Term Solvency
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
55. Cash Ratio
Measures the ability to pay off
debt obligation using cash on
hand
Cash and Equivalents
Current Liabilities
Human Resources Management Finance Marketing Conclusion
Short-Term Solvency
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
56. Total Debt Ratio
A conservative measure of
long-term solvency
Total Liabilities
Total Assets
Human Resources Management Finance Marketing Conclusion
Long-Term Solvency
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
57. Debt-to-Equity Ratio
A measure of debt leverage
Total Liabilities
Total Stockholder’s Equity
Human Resources Management Finance Marketing External Analysis
Long-Term Solvency
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
58. Total Asset Turnover
Sales generated per dollar of
assets
Sales
Total Assets
Human Resources Management Finance Marketing External Analysis
Asset Utilization
Operations Finance Marketing External Analysis
59. Profit Margin
Shows what percentage of every
dollar is kept in earnings
Net Income
Sales
Human Resources Management Finance Marketing External Analysis
Profitability
Operations Finance Marketing External Analysis
60. Return on Assets
Earnings that are generated from
invested capital
Net Income
Total assets
Human Resources Management Finance Marketing Conclusion
Profitability
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
61. Price Earnings Ratio
Amount investors pay for one
dollar of earnings
Market Value per Share
Earnings per Share
Human Resources Management Finance Marketing External Analysis
Market Value
Operations Finance Marketing External Analysis
62. The percentage of all rental
units (rooms) are occupied or
rented at a given time
Human Resources Management Finance Marketing External Analysis
Occupancy Rate
Operations Finance Marketing External Analysis
71. Price: Pricing Strategies
Finance Marketing External Analysis SWOT
● Premium pricing strategy
○ High-level prices
■ Perceived to have excellent
quality and additional
characteristics and features
● Variable pricing
72. Price
Finance Marketing External Analysis SWOT
● Guaranteed lowest price
● Why book directly with Hilton?
○ Always find the lowest price on our
websites or we'll give you $50.
73. Place
● Website booking on
hilton.com
● Third-party booking
Finance Marketing External Analysis SWOT
74. Place
● 4,440 hotels
○ Over 730,000 rooms
● 97 countries and territories
○ All 50 states
Finance Marketing External Analysis SWOT
75. Place
● Three major factors when a new Hilton location is considered:
○ Where - The Geographical location must be convenient
○ When - Timely response to a customer’s schedule
○ How - Events and meetings tailored to customer’s needs
Finance Marketing External Analysis SWOT
78. Public Relations
Finance Marketing External Analysis SWOT
● “Nassetta Inducted into Hospitality Industry Hall of
Honor”- 10/21/2015
● “Hilton Hawaiian Village Prepares Thanksgiving Meals for
Hundreds in Need”- 11/25/15
● “Hilton Atlanta Sells for $146 million”- 10/30/15
● “Hilton Hotel Reports POS Data Breach” 11/26/15
● “Hilton Brings Digital Key to Android”- 10/6/15
80. Personal Selling
Finance Marketing Conclusion
● “Globally Motivated, Individually
Focused”
● Over 700 sales professionals in 34
regional offices around the world
● Strategic Account Management
team dedicated to negotiating
customizable deals with
customers
● Drives profit and leads to stronger
and more committed relationships
Finance Marketing External Analysis SWOT
81. Direct Marketing
Finance Marketing Conclusion
● HHonors program and app
○ Various tiers
● Developed customer database
● Strong social media presence and
interaction
Finance Marketing External Analysis SWOT
85. Macroeconomic Factors
● Volatile industry
● Changes in demands for hotel rooms, occupancy levels, and room rates
○ High dependency on the economic cycle
● Changes in the consumer location preference
● Dependent on transportation industry
● Cyclical and seasonal
● Environmental laws
● Government regulation
Marketing External Analysis SWOT Sustainable Competitive Adv.
86. Macroeconomic Factors
Finance Marketing External Analysis
● War, political conditions or civil unrest
● Decreased corporate or government travel-related budgets and spending
● Statements, actions, or interventions by governmental officials
● Negative media exposure in certain locations (Ebola, Sars, H1N1, Avian flu)
● Cyber-Attacks
● Natural or man-made disasters
Marketing External Analysis SWOT Sustainable Competitive Adv.
87. Industry Competition: Direct
Finance Marketing Conclusion
● Current Stock Price: 71.11 per share
○ P/E Ratio: 26.45
○ Average Volume of 26.2 M
● Social Involvement
● “We Embrace Change”
○ Innovation has always been part
of the Marriott story
Marketing External Analysis SWOT Sustainable Competitive Adv.
88. Industry Competition: Direct
Finance Marketing Conclusion
● Current Stock Price: 50.06 per share
○ P/E Ratio: 27.42
○ Average Volume of 440,492
● Environmental Friendly
● “We make a difference in the lives of
those we 'touch' every day.”
Marketing External Analysis SWOT Sustainable Competitive Adv.
90. Industry Technology
● Apps
● Digital Key
● Website
Marketing External Analysis SWOT Sustainable Competitive Adv.
91. Industry Consumer
Finance Marketing Conclusion
● According to “Small Business” by Demand Media, “Trend Watching”, and
“Hospitality Technology”, the industry consumer is:
○ Looking for value
○ Typically possesses disposable income
○ Appreciates option of Rewards program
○ Prefer self-service check-ins and online transactions
○ Interested in personal health and wellness
Marketing External Analysis SWOT Sustainable Competitive Adv.
95. Weaknesses
● Lack of advertising measurability
● High long-term debt
● Decreasing timeshare profitability
● HHonors promotions
● Underleveraged HHonors database
● Underleveraged strategic alliances
● Lack of room standardization
● Research and Development department Positive Negative
Internal Strengths Weaknesses
External Opportunities Threats
External Analysis SWOT Sustainable Competitive Adv. Viable Alternatives
96. Opportunities
● Exclusive booking to Hilton.com
● App & technology development
● Economic recovery
● Increase in consumer disposable income
● Decreased transportation costs
● Growing availability of strategic alliances
● Reduced threat of disease
● Increased credit card security Positive Negative
Internal Strengths Weaknesses
External Opportunities Threats
External Analysis SWOT Sustainable Competitive Adv. Viable Alternatives
97. Threats
● Increase of competition (direct and indirect)
● New forms of travel stay
● Growth of third-party booking sites
● Marriott’s recent acquisition of starwood
● High market volatility
● International civil unrest
● Decrease in international travel
● Industry wide cyber attacks
● Increase in government regulations
Positive Negative
Internal Strengths Weaknesses
External Opportunities Threats
External Analysis SWOT Sustainable Competitive Adv. Viable Alternatives
99. Sustainable Competitive Advantage
A long-term competitive advantage that is not easily duplicated by other competitors.
This is developed by solidifying a pristine brand image, utilizing intellectual
capital, offering exceptional services, and strengthening customer loyalty.
SWOT Sustainable Competitive Adv. Viable Alternatives Minor Recommendations
100. New Sources of Sustainable
Competitive Advantage
● Develop our database asset
○ Comprehensive loyalty program and application
● Leverage intellectual capital
○ Empower front-line employees
● Promote and enhance positive consumer perception of brand image
SWOT Sustainable Competitive Adv. Viable Alternatives Minor Recommendations
102. Viable Alternatives
● Implement an on-going immersion program
○ Management develops a stronger connection to employees and customers
○ Expensive and time-consuming
● Initiate a Business Leadership Summit
○ Collaborate with and learn from leaders in other industries
○ Difficult to implement
Sustainable Competitive Adv. Viable Alternatives Minor Recommendations Major Prog. Recommendation
103. Viable Alternatives
● Standardize, renovate, and modernize all rooms
○ Provides brand continuity
○ Expensive
● Create a new Research & Development department
○ Leverages new opportunities and fosters innovation
○ Costly undertaking
Sustainable Competitive Adv. Viable Alternatives Minor Recommendations Major Prog. Recommendation
105. Minor Recommendations
● Streamline distribution channels
○ Utilize our leverage in relationships with third party sources
● Strengthen and create strategic alliances
● Establish Matrix structure
○ Develop an Employee Service Representative position
○ Connect with employees
Viable Alternatives Minor Recommendations Major Prog. Recommendation Areas of Future Study
108. Customer Tiers
Blue (0 Points) Silver (1,000) Gold (7,000) Diamond (12,000)
● Room
selection
● Digital key
● Room
customization
● Blue rewards
● iPads
● Premium Wi-fi
● Spa access
● Premium
Spotify & Hulu
access
● Late check-out
● Digital check-in
● Silver Rewards
● Personal
assistant
● Premium Starz
access
● VIP parking
● Exclusive hors
d’oeuvres
● Gold Rewards
● Exclusive
concert access
● Sleep Number
bed
$1 of hotel = 1 Point
$1 of spa = 2 Points
$1 of event space = 2 Points
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
109. ● A continuation of some of the services from HHonors
○ Selecting a specific room
○ Digital room key
● Additional customization options that Hilton can store in database
○ Number of pillows
○ Housekeeping times
○ Temperature of the room
○ Shampoo type
○ Drinks upon arrival
Blue Tier
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
(0 Points)
110. ● Premium Wi-fi
● Exclusive spa access
○ Pool, sauna, and shower access
● Spotify & Hulu access
● Late check-out
● Digital check-in
● iPads
Silver Tier
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
(1,000 Points)
112. ● Menu of options
○ Per geographic location
○ Uncovered during research
● Personal assistant per Dwell floors (as needed)
○ Digital access to assistants
● Starz premium access
● VIP parking
● Exclusive hors d’oeuvres upon arrival
Gold Tier
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
(7,000 Points)
113. ● Exclusive event access
○ Meet and greets
○ Concert access
○ Red carpet access
● Sleep Number beds
Diamond Tier
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
(12,000 Points)
114. Cultural Feasibility
● Corporate philosophy
● Positive attitudes toward change and innovation
● Customer focus
● Eager to improve
“We were complacent. There was no culture of innovation. It was more a culture
of do it at a relatively slow pace and do it the way we’ve always done it... It just
wasn’t organized in the right way.”
- Christopher Nassetta
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
115. Financial Feasibility
● 44 million HHonors members
○ 50% of guests are HHonors members
○ $720 Million spent in 2014 for HHonors
○ Additional profit loss from redeemed reward nights
● $730 Million of Cash flow in 2014
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
116. Rollout
● In January 2016:
○ 150 strategic, domestic locations with varying demographics
■ Opt-in for current HHonors members
■ One year of data gathering
■ Survey
● In January 2017:
○ One year to redeem points
■ Six-months of final point accumulation
■ Phase out HHonors program
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
117. Rollout
● In July 2017:
○ One year to redeem points
■ Six-months of Dwell points
■ Final phase out HHonors program
● In January 2018:
○ Full implementation of Dwell program
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
118. Expected Outcomes
● Improved customer database
● Differentiated customers
● Increase in customer loyalty
● Increased customer share
● Move to value-based pricing
● Leverage strategic alliances
● Movement away from third-party sources
● Decrease in long-term debt
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
119. Metrics
● Enrollment Data
○ Carry over from HHonors
○ New Dwell members
○ Changes in tier population
○ Member retention rates
● Member Satisfaction Survey
● Time spent on app and with value-added programs
● Track spa revenue
● Metrics based on geographic location
● Third-party booking changes
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
120. 5 Golden Questions
● As an enrolled Hilton Dwell Member…
○ How did you hear about Dwell?
○ What did you like about the Dwell?
○ What did you dislike about Dwell?
○ Will you be using the Dwell Program more often?
○ Would you like to opt-in for more loyalty member information?
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
122. Areas of Future Study
● HRM program
○ Differentiate employees by value
○ Further utilize matrix structure and diversity
● High school and college curriculum
● Brand expansion opportunities
Major Prog. Recommendation Areas of Future Study Would You Invest? Spiritual Implications