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Hilton Hotels
European Development
Strategy Briefing
London 12th June 2007
Hilton Today
Ian Carter
Chief Executive, Hilton International Company
Global Again After 40 Years
Acquisition of Hilton International by Hilton Hotels Corporation created
the largest and most geographically diverse lodging company in the
world, with over 2,800 hotels in 76 countries.
Hilton Today
Bigger
Stronger
More focused
A global leader
3
Hilton Fast Facts
Operating in 76 countries
Over 50 different languages
spoken
Operating in 13 time zones
Strong Hilton pipeline
4
Hilton fast facts – Global – 2,838
Doubletree by Hilton Hampton by Hilton
Waldorf=Astoria
Hilton Garden Inn
Hilton
Embassy Suites
Conrad
Homewood Suites
Oth /Ti h
March 2007
5
International Credentials
World’s most recognised hotel
brand1
Management team includes
eight different nationalities
Number of years operating in
international regions:
Spain – 50+ years
Germany – 50+ years
U.K. – 40+ years
Italy – 40+ years
1
Source: BDRC
6
International Market Dynamics
Growth in international travel and short breaks
Spending power of “silver” market
Changing demographic profile of ‘‘typical’’ traveller
Discount air carrier growth
The Hilton Mission:
To be the first choice
of the world’s travelers
7
A Global Travel Boom
Worldwide population growth
6.6 billion today
8.3 billion projected in 2030
World Population Density as of May 2004.
(Map Source: Center for International Earth Science Information Network)
8
Structured for Growth
Five geographic areas: International Operations
UK & Ireland Centre based in London
Europe & Africa International offices in
Middle East & Africa Singapore and Dubai
Asia Pacific
The Americas
London
Dubai
Singapore
9
Structured for Growth
European Operational centres:
London
Madrid
Frankfurt
Paris
Vienna
Brussels
Regional Development Offices:
London Amsterdam
Moscow
Madrid London
Frankfurt Frankfurt
Paris
Paris Vienna
Moscow
Rome Rome
Madrid
Istanbul (To Open)
Istanbul
10
Europe & Africa
162 hotels
44,000 rooms
35 countries
154 Hilton, 5 Conrad, 3 Hilton Garden Inn
Presence in key European markets
UK & Ireland – 74 hotels
Germany - 18 hotels
Italy – 18 hotels
Spain – 4 hotels
13 hotels opened in 2006 – first 3 Hilton Garden Inns
15 hotels opening in 2007
Pipeline of 27 hotels to open in 13 countries (majority Hilton)
March 2007
11
Hilton Dominates the Up-Scale Sector in Europe
40,000
8.8%
35,000
7.4%
30,000
Number Rooms
25,000
4.9%
20,000
3.8%
15,000 3.3% 3.2% 3.0% 2.8% 2.4%
10,000 2.3%
5,000
0
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Source: OTUS Survey, 02/06
12
Hilton is Rated #1 in Europe
Hilton (Europe & Africa)
Hyatt
De Vere
Sheraton
Westin
Le Meridien
Steigenberger
Crow ne Plaza
Intercontinental
Hotels Hesperia
Marriott
720 730 740 750 760 770 780
Source: JD Power European Hotel Guest Satisfaction Index Study, 05/06
13
Continued Growth
Hilton Warsaw Hotel And Conference Centre, Poland – Opened March 2007
14
Continued Growth
Hilton Valencia, Spain – Opened May 2007
15
Continued Growth
Hilton Molino Stucky Venice, Italy – Opened June 2007
16
Continued Growth
Hilton Vilamoura As Cascatas Golf Resort & Spa, Portugal – Opening July 2007
17
Continued Growth
Hilton Helsinki-Vantaa Airport – Opening August 2007
18
Continued Growth
Hilton Garden Inn Matera, Italy – Opening Q4 2007
19
Continued Growth
Hilton Moscow Leningradskaya, Russia
– Opening Q1 2008 Hilton Kampala, Uganda – Opening Q4 2008
20
Continued Growth
Hilton and Hilton Garden Inn Frankfurt Airport, Germany – Opening Q2 2009
21
Hilton Growth
Global Lodging Market
Number of Rooms % of Worldwide % of Supply
(millions) Supply Branded
USA & Canada 4.9 31% 66%
Europe 6.6 41% 23%
Great Brand Opportunities
23
New Growth Opportunities for Our Family of Brands
Europe is the largest hotel region in the world with 6.6 million rooms
Only 23% today affiliated to major brands
In the next 10 years strong hotel demand
Conversion and new-build opportunities
Entry into mid- and economy market
24
Global Growth: Development Strategy
Fast
Add resources
Share strengths
Developing prototypes
Focused
Five Strategic Growth
Markets in Europe
25
Focused: Five Strategic Growth Markets in Europe
UK & Ireland
Russia
Germany
Italy
Iberian Peninsula
26
The Power of the
Hilton Family of Brands
Strategy for Performance & Growth
Unit Strong
Growth Brands
The First Choice Passionate
Enthusiastic of the World’s Team
Owners Travelers Members
Market Happy
Share Customers
Gains
28
International Strengths
Hilton brand recognition & record
Dynamic, growing markets
International management team
Consumer appeal of brand range ─ great potential for “focused” service
brands
The Hilton Engine
29
The Hilton Engine
Hilton Hotels
Corporation
Sales HHonors Reservations Technology Performance
Measurement
Cross-Brand Shared Resources
Shared resources between all Hilton Family of Hotels.
30
Family of Brands
Patrick Fitzgibbon
Senior Vice President, Development, Hilton Hotels
The Hilton family – over 2,800 hotels
32
Brand Strategy – Focused: Right Product
33
Hotel Classifications
Luxury Up-Scale Mid-Market Economy
Four Seasons Crown Plaza Country Inn by Campanile
Mandarin Grand Hyatt Carlson Comfort
Oriental Hyatt Regency Courtyard by Days Inn
Maybourne Intercontinental Marriott Express by
Orient Express Le Meridien Four Points Holiday Inn
Park Hyatt Maritim Holiday Inn Ibis
Raffles Marriott Holiday Inn Innkeeper’s
Ritz Carlton Melia Garden Court Lodge
St. Regis Millennium Howard Kyriad
Radisson Johnson Premier Travel
Renaissance Novotel Inn
Sheraton Park Inn Sleep Inn
Sofitel Quality Travelodge
Swissotel Ramada
Westin Sol
34
Waldorf=Astoria
Discovery
and Unique
Experiences
35
Global Portfolio
Open Pipeline Total
Number of hotels 5 2 7
Number of rooms 3,669 620 4,289
36
Conrad Hotels & Resorts
The luxury
of being
yourself
37
Global Portfolio
Open Pipeline Total
Number of hotels 15 8 23
Number of rooms 5,151 2,899 8,050
38
Doubletree by Hilton
Warm
Welcoming
Friendly
39
Portfolio
Open Pipeline Total
Number of hotels 173 24 197
Number of rooms 44,951 5,945 50,896
40
Doubletree by Hilton
Upscale
Icons
Warm chocolate cookie provided at check-in
Warm, personal and inviting
Brand Promise/Strategy
To provide exceptionally warm and caring service where guests feel
welcomed & appreciated
Fundamentally a conversion brand
41
How customers view each brand…
Contemporary Traditional
Business casual Business formal
Value driven Service Driven
42
Hilton Garden Inn
Everything.
Right Where
You Need It.
Portfolio
Open Pipeline Total
Number of hotels 309 188 497
Number of rooms 42,745 24,829 67,574
44
Hilton Garden Inn
Mid-Market
Icons
Herman Miller Mirra chair
Garden Sleep System Bed
Hospitality Centre
Pavilion Pantry
Brand Promise/Strategy
Warm and inviting, yet functional
Everything. Right Where You Need It.
45
Product
150 Bedrooms
Three meal a day grill style restaurant
Complimentary 24 hour business centre
Meeting facilities for small to mid-scale groups
Workout facility and in-room Stay Fit Kit
Complimentary secure remote printing
46
Development Specifications
Bedroom: 24sqm
Gross Area per Key: 46sqm
Target Build cost: £85-95k per key (inc air con)
Primarily urban and suburban major markets. Designed for commercial,
airport and destination markets
Mostly new-builds
47
International Prototype – Lobby Visual
48
International Prototype – Restaurant Visual
49
International Prototype – Bar Visual
50
International Prototype – Bedroom
51
International Prototype – Bedroom
52
Hilton Garden Inn Stuttgart NeckarPark (155)
Opened Sept 2006
53
Hilton Garden Inn Rome Airport (260)
Opened December 2006
54
Hilton Garden Inn Luton North (155)
Opening Q2 2008
55
Hampton by Hilton
We Love Having
You Here
56
Global Portfolio
Open Pipeline Total
Number of hotels 1,409 368 1,777
Number of rooms 139,946 34,696 174,642
57
Hampton by Hilton
Economy
Icons
100% Satisfaction Guarantee – “If you’re not completely satisfied, we don’t
expect you to pay”,
Hampton/Cloud 9 Bed
High Speed Internet Access
Brand Promise/Strategy
Value, Quality, Consistency and Service
58
Development Specifications
Bedroom: 21sqm
Gross Area per Key: 35sqm
Target Build cost: £50-55k per key (inc air con)
Vast distribution across major, secondary and tertiary markets
Primarily new-builds
59
International Prototype – Welcome Zone
60
International Prototype – Gathering Zone
61
International Prototype – Living Zone
62
International Prototype – Work Zone
63
International Prototype - Guestroom and Bathroom
64
International Prototype - Guestroom Rendering
65
International Prototype - Guestroom Rendering
66
Hilton Family of Brands
Services P`rovided
40
0 50 60 70 80 90 100
Price Index (%)
67
Hilton Family of Brands – Gross Internal Floor Area per Key
80
70
60
70
50
Square Metres
65
40
30 46
20
34
10
0
68
UK & Ireland
Simon Vincent
President, UK & Ireland, Hilton Hotels
Hilton in the UK & Ireland
75 hotels
Over 16,200 hotel bedrooms
Over 2.1 million room nights a year
Turnover of over £700m p.a.
Occupancy of 76.4% year round
5 hotels opened in the last year, a
further 4 to follow
Two significant partnership deals
established
70
Awards and Accolades: Hilton in the UK & Ireland
consistently outperforms its competition…
BDRC
Leading Choice UK Hotel Brand for the eighth year in a row
Business Traveller Awards 2006
Best Business Hotel Chain in the UK
Best Airport Hotel – The Hilton London Heathrow
British Travel Awards 2006
Hotel Chain of the Year
Buying Business Travel Awards 2006
Best UK Hotel Group & Best Hotel Group for Meetings & Conferences
Visit London Awards 2006
Large Hotel of the Year – The London Hilton on Park Lane
71
BDRC British Hotel Guest Survey 2007 - Business
In terms of customer awareness, choice and use. Maximum possible score: 60 points
72
BDRC British Hotel Guest Survey 2007 - Leisure
In terms of customer awareness, choice and use. Maximum possible score: 60 points
73
Hilton London Canary Wharf – Opened June 2006
74
Hilton London Tower Bridge – Opened September 2006
75
Hilton Manchester Deansgate – Opened October 2006
76
Hilton Dublin Kilmainham – Opened May 2007
77
Hilton Limerick – Opened May 2007
78
Hilton Garden Inn Luton North – Opening Q2 2008
79
Hilton Reading – Opening Q1 2009
80
Hilton Liverpool – Opening Q2 2009
81
Hilton Wembley – Opening Q4 2010
82
Heathrow: Not 1 Market….. But 6!
Hilton Hilton Garden Inn Hampton by Hilton 83
Hilton UK & Ireland – Future Development Plans
Today
75
By 2016
175+ 84
Development Strategy
Jan Hazelton
Vice President Development, Relationships & Funding, Hilton Hotels
Development Strategy - United Kingdom
Aberdeen
Belfast
Edinburgh
Glasgow
Newcastle
Liverpool
Manchester
Leeds
Nottingham
Derby
Birmingham
West Midlands
Cambridge
Bristol Stansted
Dublin
Luton
Cardiff London
Gatwick
Oxford
South Coast
Reading Heathrow
86
Growth Vehicles
Luxury Up-scale Mid-market Economy
New Build
Conversions
Management Agreements Franchise Agreements Selective JV
87
Creating a Profitable Future Together
Form strategic relationships
Bankers
Consultants
Developers
Equity Providers
Owners
88
Hilton Today
Ian Carter
Chief Executive, Hilton International Company
The Hilton Engine
Hilton Hotels
Corporation
Sales HHonors Reservations Technology Performance
Measurement
Cross-Brand Shared Resources
Shared resources between all Hilton Family of Hotels.
90
Strategy for Performance & Growth
Unit Strong
Growth Brands
The First Choice Passionate
Enthusiastic of the World’s Team
Owners Travelers Members
Market Happy
Share Customers
Gains
91
Thank you
Meet the team
Ian Carter Simon Vincent Patrick Jan Hazelton Nick Smart Andy Potter
Fitzgibbon
Chief Executive, President, VP Development VP Development, Development
Hilton International UK & Ireland SVP Development Relationships & UK & Ireland Director, UK &
Company Europe & Africa Funding Ireland
www.hiltondevelopment.com
93
