AGENDA      • Key Issues/Opportunity Areas      • Industry Analysis      • Financial Analysis      • Possible Alternatives...
KEY ISSUE/OPPORTUNITY          • Brand differentiation          • Monitoring Performance          • Customer Personalizati...
KEY ISSUE/OPPORTUNITY                                                          IMPORTANCE                                 ...
KEY ISSUE/OPPORTUNITY                                                          IMPORTANCE                                 ...
KEY ISSUE/OPPORTUNITY                                                          IMPORTANCE                                 ...
KEY ISSUE/OPPORTUNITY                                                          IMPORTANCE                                 ...
SWOT                     STRENGTHS                                                  WEAKNESS                     •    Stro...
SWOT                     STRENGTHS                                                  WEAKNESS                     •    Stro...
SWOT                     STRENGTHS                                                  WEAKNESS                     •    Stro...
SWOT                     STRENGTHS                                                  WEAKNESS                     •    Stro...
THREAT OF NEW ENTRY    PORTERS 5 FORCES                                              Low                                  ...
THREAT OF NEW ENTRY    PORTERS 5 FORCES                                              Low                                  ...
THREAT OF NEW ENTRY    PORTERS 5 FORCES                                              Low                                  ...
THREAT OF NEW ENTRY    PORTERS 5 FORCES                                              Low                                  ...
THREAT OF NEW ENTRY    PORTERS 5 FORCES                                              Low                                  ...
DEBT-EQUITY STRUCTURE          2007                        Hilton Corp.                                                   ...
BRAND ANALYSIS        Brand               2001                    2006             $3,500.00                              ...
CALL CENTRE PERFORMANCE        Year          Net Revenue/Call                             Hilton Corp. Call Centre Perform...
OFF THE SHELF               • Opt for an off the shelf ERP software like SAP or Oracle               • Customize it to the...
OFF THE SHELF               • Opt for an off the shelf ERP software like SAP or Oracle               • Customize it to the...
CONSOLIDATION               •     Integrating existing System               •     Add Customer Personalization and Feedbac...
CONSOLIDATION               •     Integrating existing System               •     Add Customer Personalization and Feedbac...
CUSTOMER RELATIONSHIP MARKETING               •     Using the guest data to target market segments               •     Lau...
CUSTOMER RELATIONSHIP MARKETING               •     Using the guest data to target market segments               •     Lau...
DECISION MATRIX                Criteria          Weight         System Integration/         Standardization     CRM Market...
CURRENT OnQ SYSTEMOPPORTUNITY   SWOT   PORTERS 5   FIN. ANALYSIS   ALTERNATIVES   IMPLEMENTATION   CONTINGENCY   SUMMARY  ...
NEW OnQ SYSTEMOPPORTUNITY   SWOT   PORTERS 5   FIN. ANALYSIS   ALTERNATIVES   IMPLEMENTATION   CONTINGENCY   SUMMARY   Q&A
IMPLEMENTATION PLANOPPORTUNITY   SWOT   PORTERS 5   FIN. ANALYSIS   ALTERNATIVES   IMPLEMENTATION   CONTINGENCY   SUMMARY ...
STAGE ONE:      Design      • Usability          • End-user friendly      • Consolidate/Streamline system          • Combi...
STAGE TWO:          Implementation          • Planning & Phased conversion          • Estimated Time: 2 Years             ...
PERFORMANCE METRICS    • Add QR code on room key for customer feedback    • New SALT (Satisfaction and Loyalty Tracking) q...
RevPAR PROJECTIONS:    Basis: Historical                          2006         2007        2008       2009       2010     ...
CONTINGENCY PLAN     • Encourage customer interaction              • Example: Ford Mustang Club     • Build Loyalty base  ...
CONTINGENCY PLAN     • Using the guest data to target market segments     • Launch a Customer Relationship Marketing Campa...
SUMMARY     Opportunity/Key Issues:                                                   Proposed Alternative:               ...
OPPORTUNITY   SWOT   PORTERS 5   FIN. ANALYSIS   ALTERNATIVES   IMPLEMENTATION   CONTINGENCY   SUMMARY   Q&A
COSTING                      Yr 1           Yr 2        Yr 3         Yr 4          Yr 5         Total     Cost            ...
COSTING      Budget = $90.8M      Hardware costs of new system = $55,000,000      Employee cost for design = ($130,000 * 5...
COSTING              Financials- Basis for Calculations              RevPAR Index              (Hotel RevPAR/ competitive ...
Hilton Hotel Change Management
Hilton Hotel Change Management
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Hilton Hotel Change Management

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Hilton Hotel Change Management

  1. 1. AGENDA • Key Issues/Opportunity Areas • Industry Analysis • Financial Analysis • Possible Alternatives • Implementation of selected alternatives • Contingency Plan • Summary • Q&AOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  2. 2. KEY ISSUE/OPPORTUNITY • Brand differentiation • Monitoring Performance • Customer Personalization • Alignment and ExecutionOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  3. 3. KEY ISSUE/OPPORTUNITY IMPORTANCE LOW HIGH Brand Differentiation Monitoring Performance LOW URGENCY Customer Personalization Alignment & Execution HIGHOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  4. 4. KEY ISSUE/OPPORTUNITY IMPORTANCE LOW HIGH Brand Differentiation Monitoring Performance LOW URGENCY Customer Personalization Alignment & Execution HIGHOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  5. 5. KEY ISSUE/OPPORTUNITY IMPORTANCE LOW HIGH Brand Differentiation Monitoring Performance LOW URGENCY Customer Personalization Alignment & Execution HIGHOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  6. 6. KEY ISSUE/OPPORTUNITY IMPORTANCE LOW HIGH Brand Differentiation Monitoring Performance LOW URGENCY Customer Personalization Alignment & Execution HIGHOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  7. 7. SWOT STRENGTHS WEAKNESS • Strong global brand • Principal-Agent recognition • Pre-assignment • Diversified Portfolio • Multiple ERP systems • Owner Appreciation • Proprietary IT System OPPORTUNITY THREATS • Brand Consistency • Intense Competition • Customer Relation • Exposure to cyclical downturns Management • Rising cost of air fare • Increasing World Travel & TourismOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  8. 8. SWOT STRENGTHS WEAKNESS • Strong global brand • Principal-Agent recognition • Pre-assignment • Diversified Portfolio • Multiple ERP systems • Owner Appreciation • Proprietary IT System OPPORTUNITY THREATS • Brand Consistency • Intense Competition • Customer Relation • Exposure to cyclical downturns Management • Rising cost of air fare • Increasing World Travel & TourismOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  9. 9. SWOT STRENGTHS WEAKNESS • Strong global brand • Principal-Agent recognition • Pre-assignment • Diversified Portfolio • Multiple ERP systems • Owner Appreciation • Proprietary IT System OPPORTUNITY THREATS • Brand Consistency • Intense Competition • Customer Relation • Exposure to cyclical downturns Management • Rising cost of air fare • Increasing World Travel & TourismOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  10. 10. SWOT STRENGTHS WEAKNESS • Strong global brand • Principal-Agent recognition • Pre-assignment • Diversified Portfolio • Multiple ERP systems • Owner Appreciation • Proprietary IT System OPPORTUNITY THREATS • Brand Consistency • Intense Competition • Customer Relation • Exposure to cyclical downturns Management • Rising cost of air fare • Increasing World Travel & TourismOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  11. 11. THREAT OF NEW ENTRY PORTERS 5 FORCES Low Capital Intensive market Industry dominated by 2 players Strong brand presence COMPETETIVE RIVALRY WITHIN SUPPLIER POWER INDUSTRY BUYER POWER Low Moderate High Large global brand High barriers to exit Access to information Commodity based product Utilizing capacity Buyers are price sensitive Cost of switching is low Buyer power is high Low switching costs Moderate level of product diff THREAT OF SUBSTITUTION Moderate Varied options Easy substituteOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  12. 12. THREAT OF NEW ENTRY PORTERS 5 FORCES Low Capital intensive market Industry dominated by 2 players Strong brand presence COMPETETIVE RIVALRY WITHIN SUPPLIER POWER INDUSTRY BUYER POWER Low Moderate High Large global brand High barriers to exit Access to information Commodity based product Utilizing capacity Buyers are price sensitive Cost of switching is low Buyer power is high Low switching costs Moderate level of product diff THREAT OF SUBSTITUTION Moderate Varied options Easy substituteOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  13. 13. THREAT OF NEW ENTRY PORTERS 5 FORCES Low Capital intensive market Industry dominated by 2 players Strong brand presence COMPETETIVE RIVALRY WITHIN SUPPLIER POWER INDUSTRY BUYER POWER Low Moderate High Large global brand High barriers to exit Access to information Commodity based product Utilizing capacity Buyers are price sensitive Cost of switching is low Buyer power is high Low switching costs Moderate level of product diff THREAT OF SUBSTITUTION Moderate Varied options Easy substituteOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  14. 14. THREAT OF NEW ENTRY PORTERS 5 FORCES Low Capital intensive market Industry dominated by 2 players Strong brand presence COMPETETIVE RIVALRY WITHIN SUPPLIER POWER INDUSTRY BUYER POWER Low Moderate High Large global brand High barriers to exit Access to information Commodity based product Utilizing capacity Buyers are price sensitive Cost of switching is low Buyer power is high Low switching costs Moderate level of product diff THREAT OF SUBSTITUTION Moderate Varied options Easy substituteOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  15. 15. THREAT OF NEW ENTRY PORTERS 5 FORCES Low Capital intensive market Industry dominated by 2 players Strong brand presence COMPETETIVE RIVALRY WITHIN SUPPLIER POWER INDUSTRY BUYER POWER Low Moderate High Large global brand High barriers to exit Access to information Commodity based product Utilizing capacity Buyers are price sensitive Cost of switching is low Buyer power is high Low switching costs Moderate level of product diff THREAT OF SUBSTITUTION Moderate Varied options Easy substituteOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  16. 16. DEBT-EQUITY STRUCTURE 2007 Hilton Corp. Avg. Cost Capital Structure Debt = 6.8% Total Debt $32,670 86.27% DEBT EQUITY Total Equity $5,198 13.73% 14% Total Cap. $37,868 100% 2004 2005 2006 2007 86% Hilton Corp. 2.21 2.11 3.42 6.29 Marriott Int. 1.12 1.62 2.28 5.25 Hilton Corp. Capital Structure (as of 2007 year-end)OPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  17. 17. BRAND ANALYSIS Brand 2001 2006 $3,500.00 $3,000.00 $2,500.00 Annual Revenue (in Millions) $2,000.00 $1,500.00 Waldorf Astoria $258.56 $351.12 $1,000.00 $500.00 $0.00 2001 Conrad $5.60 $34 2006 International Hilton Hotels $2,565.87 $3,334.15 Embassy Suites $1,144.36 $1,581.90 Doubletree $1,023.60 $1,256 Hilton Garden Inn $368.69 $1,045 2001 2006 % Growth Homewood Suites $284.50 $566 Avg. RevPar $88.25 $113.63 4.3% Hampton Brand $1,787 $3,208.90 Avg. REVPAR 106.23 109.51 3.28% Index Revenue Matrix Across all BrandsOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  18. 18. CALL CENTRE PERFORMANCE Year Net Revenue/Call Hilton Corp. Call Centre Performance $110.00 $100.00 2001 $73.09 $90.00 $80.00 $70.00 2002 $77.64 $60.00 Net Revenue / Call $50.00 2003 $84.39 $40.00 2001 2002 2003 2004 2005 2006 2007 2004 $85.57 Year 2005 $90.30 Conversion Ratio 2007 2006 $99.29 Hilton Corp. 41.4% 2007 $102.55 Hospitality Industry 28.4%OPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  19. 19. OFF THE SHELF • Opt for an off the shelf ERP software like SAP or Oracle • Customize it to the company’s needs • Cost Estimate: $125Million/5 years PROS CONS • Lower maintenance costs • Lose competitive advantage • Outside IT support and • Lose customizability consulting • Timelines • Cost saving on staff • Training costs • Reduces front desk personalizationOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  20. 20. OFF THE SHELF • Opt for an off the shelf ERP software like SAP or Oracle • Customize it to the company’s needs • Cost Estimate: $125Million/5 years PROS CONS • Lower maintenance costs • Lose competitive advantage • Outside it support and • Lose customizability consulting • Time lines • Cost saving on Staff • Training costs • Reduces front desk personalizationOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  21. 21. CONSOLIDATION • Integrating existing System • Add Customer Personalization and Feedback Component • Coach Front desk Staff • Monthly Performance Reports • Cost Estimate: $392.5Million/5 years PROS CONS • Lower maintenance costs • High front-end cost • Cost saving on Staff • Potential data loss • Brand alignment • Managing two systems • Front desk personalizationOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  22. 22. CONSOLIDATION • Integrating existing System • Add Customer Personalization and Feedback Component • Coach Front desk Staff • Monthly Performance Reports • Cost Estimate: $392.5Million/5 years PROS CONS • Lower maintenance costs • High front-end cost • Cost saving on Staff • Potential data loss • Brand alignment • Managing two systems • Front desk personalizationOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  23. 23. CUSTOMER RELATIONSHIP MARKETING • Using the guest data to target market segments • Launch a Marketing Campaign • Utilize existing system • Cost Estimate: $100M/5 Years PROS CONS • Quick implementation • No increased personalization • Low cost • Does not address front-desk • Sustainable over long-term staff issues • Profitable to gain new • Tailor marketing campaign for customers diverse client base • Marketing builds loyaltyOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  24. 24. CUSTOMER RELATIONSHIP MARKETING • Using the guest data to target market segments • Launch a Marketing Campaign • Utilize existing system • Cost Estimate: $100M/5 Years PROS CONS • Quick implementation • No increased personalization • Low cost • Does not address front-desk • Sustainable over long-term staff issues • Profitable to gain new • Tailor marketing campaign for customers diverse client base • Marketing builds loyaltyOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  25. 25. DECISION MATRIX Criteria Weight System Integration/ Standardization CRM Marketing Consolidation of IT Campaign Cost 0.05 1 2.5 4 Implementation Time 0.05 1 1 4 Brand Differentiation 0.2 3.5 0 3.5 Performance Metrics 0.1 2.5 2 2 Brand Alignment & 0.35 4.5 2.5 1 Execution Personalization 0.25 4 2 4 Total 1 3.6 1.75 2.65 System Integration/Consolidation 33% 45% Standardization of IT 22% CRM Marketing CampaignOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  26. 26. CURRENT OnQ SYSTEMOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  27. 27. NEW OnQ SYSTEMOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  28. 28. IMPLEMENTATION PLANOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  29. 29. STAGE ONE: Design • Usability • End-user friendly • Consolidate/Streamline system • Combine OnQ Reservations, OnQ Property Management System and OnQ CRM • Front-desk access to data • Purchasing, Coding & Documentation • Ensure no loss of data • Estimated Time: 6 Months Testing /Revisions & Finalization • Estimated time: 2 MonthsOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  30. 30. STAGE TWO: Implementation • Planning & Phased conversion • Estimated Time: 2 Years Expansion Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Hotels 100 100 200 300 300 Training • Ensure Front desk properly executes CRM • Implemented by IT specialists (QA) • 1 week per hotel and 30 hotels per week • Estimated Time: OngoingOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  31. 31. PERFORMANCE METRICS • Add QR code on room key for customer feedback • New SALT (Satisfaction and Loyalty Tracking) questions: overall booking experience with new system, Rating on ability to meet required preferencesOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  32. 32. RevPAR PROJECTIONS: Basis: Historical 2006 2007 2008 2009 2010 2011 2012 CAGR 4.3% $113.63 $118.52 $123.61 $128.93 $134.47 $140.25 $146.28 Conversion Ratio GOAL: MAINTAIN 42% Hilton Corp. Projected RevPAR $150.00 CAGR of $140.00 3.67% $130.00 $120.00 $110.00 $100.00 2006 2007 2008 2009 2010 2011 2012OPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  33. 33. CONTINGENCY PLAN • Encourage customer interaction • Example: Ford Mustang Club • Build Loyalty base • Utilize existing systemOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  34. 34. CONTINGENCY PLAN • Using the guest data to target market segments • Launch a Customer Relationship Marketing Campaign • Social Media Marketing • TV & Print ads • Focus of campaign will be core customers, using OnQ data and SALT surveys to collect information about and communicate with customers • Cost Estimate: $100M/5 Years • Time Estimate: 5 YearsOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  35. 35. SUMMARY Opportunity/Key Issues: Proposed Alternative: Design & Testing • Integrating existing System • Brand differentiation (8 Months) • Add Customer Personalization and • Monitoring Performance Feedback Component • Customer Personalization • Coach Front desk Staff • Monthly Performance Reports • Alignment and Execution Implementation & Training (2 Years) Remodel CRM all units (5 Years) (Ongoing)OPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  36. 36. OPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  37. 37. COSTING Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Total Cost $137,000,000 $82,000,000 $57,500,000 $58,000,000 $58,000,000 $392,500,000 Annual IT Budget $240,000,000 $240,000,000 $240,000,000 $240,000,000 $240,000,000 % of Annual Budget 57.10% 34% 24% 24.16% 24.16% Yr 1 55 + (130,000 * 50) + ($50,000 * 50) + $8M + 65M = 137 000 000 Yr2 (130,000 * 50) + ($50,000 * 50) + $8M + 65M = 82 000 000 Yr3 (130,000 * 50) + 50M + 1 = 57 500 000 Yr4 (130,000 * 50) + 50M + 1.5 = 58 000 000 Yr5 (130,000 * 50) + 50M + 1.5 = 58 000 000OPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  38. 38. COSTING Budget = $90.8M Hardware costs of new system = $55,000,000 Employee cost for design = ($130,000 * 50)(.66) = $4,333,333 (50 * $130,000) + (50 * $50,000) = $9M New IT guys (used for conversion as well) = $50,000 * 50 = $2,500,000 Risk (33% of total cost) = $29.96M Implementation and Employee Training Costs for the first 5 years locally = $5000 * 4000 hotels = $20,000,000 Year 1 to 2 = $16,000,000 or $8M per year (1,500 hotels currently plus 100 expansion * $5,000 per hotel training) Year 3 = 200 hotels * $5,000 = $1M Year 4 = 300 hotels * $5,000 = $1.5M Year 5 = 300 hotels * $5,000 = $1.5M 55 + (130,000 * 50) + ($50,000 * 50) + $8M = 72M + 60M for Maintaining the current system.OPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A
  39. 39. COSTING Financials- Basis for Calculations RevPAR Index (Hotel RevPAR/ competitive set RevPAR) *100 = RevPAR Index CAGR (End Value/Beg Value) 1/n - 1 2001- (113.63/88.2 2006 5) 1/6 -1 2007- 146.28/113.6 2012 3) 1/7 - 1 Average Cost of Debt Taken from 2006 Hilton Annual ReportOPPORTUNITY SWOT PORTERS 5 FIN. ANALYSIS ALTERNATIVES IMPLEMENTATION CONTINGENCY SUMMARY Q&A

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