Transcript Document

Hilton
FY 2010
Mars 2011
Marriott vs. its main competitors
Network
Pipeline
EMEA
APAC
13%
19%
Americas
68%
In ‘000
rooms
Vs
end 2009
205
-3%
138
+6%
105
+5%
103
-5%
507
101
0%
495
85
0%
302
51
-24%
Pipeline
In ‘000
rooms
647
208 Kr
(1)
83%
613
8%7%
85%
605
10% 4%
~600
86%
56%
16%
Rooms pipeline
as of FY2010
Rooms network
as of FY 2010
(2)
8% 9%
28%
366Kr
7%5%
20%19%
88%
61%
(1) Hilton geographical breakdown based on 2009 figures
NB: Figures include traditional lodging and extended stay units but exclude timeshare products
(2) Hilton pipeline based on an internal press release, January 2011
The 3rd largest global hotel group, the second
if we include Timeshare segment (618 Kr)
Source : Companies annual reports except for Hilton network, Accor internal data
A strong increase of pipeline vs. 2009
2
1. Company overview
segment
# hotels
# rooms
Mid-Lux.
3,793
623,114
Description
Ownership
– 4th worldwide hotel player with one of the most recognized
brand worldwide
– 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.
– Funded in 1919, Hilton operates in 3 main segments
– 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.
• 3,600 hotels and vacation ownership / 600,000 rooms in 82
countries
• 130,000 employees
• 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%)
Main Figures
Hilton Honors
– 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)
Operating type
Owned &
Lease
5%
26%
69%
Geographical Breakdown
2%
6% 2% 1%
Mgnt
APAC
Franchise
89%
3
Source: Euromonitor, Hilton press releases
(1) 2009 figures
North
America
Latin
America
Europe
MEA
– 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.
Hilton – Company Profile
FY 2010
2. Brand positioning
Luxury
19 h
24 h
561 h
Upscale
208 h
307 h
49 h
247 h
512 h
2h
Midscale
1864 h
Limited
Service
Full
Service
Lodging
4
Source: Accor data extracted from
Hilton Website as of March 2011
Serviced
Apartments
Extended
Stay
Extended Stay
Hilton – Company Profile
FY 2010
Timeshare
Timeshare
3. Room portfolio
Breakdow n
by brand
Category
ACCOR
Brand
Geographical repartition (italic=estimation)
Hotels
Hotel av
Size
Room s
(fo r example)
Europe
H
Luxury
R
North America
Latin America
H
H
R
Af. Mdle-East
R
H
Asia Pac.
H
R
R
43
16 131
375
8
2 974
18
6 987
4
1 546
2
743
11
Waldorf = Astoria Collection
Luxury
24
9631
401
4
1 605
14
5 618
3
1 204
1
401
2
803
Conrad Hotels
Luxury
19
6 500
342
4
1 368
4
1 368
1
342
1
342
9
3 079
Upscale
3 882
1 016
315 697
311
177
61 515
675
197 844
41
13 423
51
17 940
72
24 975
Hilton H&R
Upscale
Sofitel
561
201 960
360
156
56 160
266
95 760
29
10 440
47
16 920
63
22 680
Double Tree
Upscale
Upscale
Pullman
247
208
62 985
50 752
255
21
5 355
208
201
53 040
49 044
5
7
1 275
4
1 020
9
2 295
2 376
252 816
106
26
3 211
2 328
247 215
20
2 116
1
137
1
137
Hilton Garden Inn
Ltd-Service
Novotel
512
70 144
137
17
2 329
489
66 993
4
548
1
137
1
137
Hampton Inn & Suites
Ltd-Service
84
28 994
12
1 320
Embassy Suites
Midscale
244
1 708
1864
182 672
98
9
882
1839
180 222
16
1 568
Total Lodging
3 435
584 644
170
211
67 700
3 021
452 046
65
17 085
54
18 820
Extended Stay
309
33 970
110
0
0
308
33 860
1
110
0
0
Up. Upscale
307
33 770
110
306
33660
1
110
Midscale
2
200
100
2
200
49
4 500
92
4
367
367
459
459
0
4
5
5
0
92
3 673
3673
0
4500
40
40
0
49
3 793
623 114
167
215
68 067
3 369
489 579
71
17 654
54
18 820
84
28 994
Homew ood Suites
Home2
Tim eshare
Hilton Grand Vacations
Upscale
Total
5
Source: Accor data extracted from
Hilton Website as of March 2011
Hilton – Company Profile
FY 2010
4. Geographical breakdown
Hotel and room network
3,793 h / 623 Kr
As of March, 2011
89%
69
%
31
%
• USA: 594 h
• Canada: 37 h
12%
North
America
3,339 h
•
•
•
•
UK: 73 h
Italy: 20 h
Germany: 17 h
France: 8 h
88%
Europe
215 h
1%
6%
Asia / Pacific
84 h
2%
South
America
71 h
2%
• Mexico: 30 h
MEA
54 h
1%
2%
• Egypt: 17 h
• UAE: 11 h
• Saudi Arabia: 6 h
28
%
72
%
98
%
(1)
% of global network in
X%
nb of hotels
6
Source: Accor data as of March 2011
(1) incl. upper-upscale brands Waldorf and Conrad
Upscale
Midscale
Hilton – Company Profile
FY 2010
99
%
•
•
•
•
China: 23 h
Australia: 10 h
Thailand: 7h
India: 6 h
5. Pipeline and lodging development
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
Group Pipeline by Region*
2007 to 73% by the end of 2010.
3%
20%
56%
21%
North America
EMEA
APAC
Latin America
7
Sources: Hilton Press Release as of January 24th, 2011
*Lodging Econometrics Q4 2010
Hilton – Company Profile
FY 2010
6. Group strategy
Global Expansion plan 2011-2015
China and India
Latin America
 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.
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.
Middle-East / North Africa
Europe
 Largest pipeline across the region: 15,411 r. in active pipeline
 Presence to be doubled by 2014
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
 21 new properties opening across the region by 2014, four of
(1)
8
Sources: Euromonitor, Press Review
(1) Hilton Press release as of March 10, 2011
them being located in the UAE
Hilton – Company Profile
FY 2010
7. SWOT analysis
Strengths
Weaknesses
– 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
– 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)
Opportunities
Threats
– 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
9
Source: Euromonitor
– 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
Hilton – Company Profile
FY 2010
8. Brands description
Waldorf = Astoria
Conrad
Embassy Suites
Lodging Brands
Hilton
DoubleTree by Hilton
Hilton Garden Inn
Hampton
Homewood Suites
Extended Stay
Home2 Suites
Timeshare
10
Source: Hilton Website
Hilton Grand Vacations
Hilton – Company profile
FY 2010
8. Brands description
Full-service – Waldorf=Astoria
Overview
Network
Full service, Luxury
Network
►Landmark hotels offering “worldly sophistication
and unparalleled guest service”
►Flagship: Waldorf=Astoria in New York, acquired
in 1949 by Conrad N. Hilton
► 23 hotels, 9,631 rooms
► Av. Size: 401 r.
Locations
►World’s capitals and gateways
Highlights
►Culinary excellence, innovative services, and
individualized service
►12 world-class golf experiences
►20 sumptuous spas
(1)
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)
4%
13%
Main competitors
8%
►The Ritz Carlton, Four Seasons, Fermont Hotels
17%
58%
North America
Europe
APAC
Latin America
MEA
(2)
Pipeline
►7 h. / 1,176 r.
19%
11%
15%
11
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 profile
FY 2010
55%
North America
Europe
APAC
Latin America
MEA
8. Brands description
Full-service – Conrad
Overview
Network
Full service, Luxury
Network
►Global contemporary luxury and lifestyle brand
►Striking design, distinct surroundings, as dynamic
reflection of the destination city and culture
► 18 hotels, 6,500 rooms
► Av. Size: 342 r.
Locations
Highlights
►World’s gateway cities, most sought-after resort
destinations
►Breathtaking views
►Spacious and luxurious guest rooms with superb
quality amenities
►Modern style, pioneering culinary concepts,
sophisticated bars and restaurants and leading
technology
(1)
Geographical Breakdown
►Global Footprint (strong presence in Asia)
5%
5%
21%
Main competitors
21%
48%
►Autograph Collection, The Luxury Collection
North America
Europe
APAC
Latin America
MEA
(2)
Pipeline
►13 h. / 3,503 r.
16% 13%
5%
66%
12
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 profile
FY 2010
North America
Europe
APAC
Latin America
MEA
8. Brands description
Full-service – Embassy Suites Hotels
Overview
Network
Full service, Upper-upscale
Network
►Upper-upscale all suites hotels
► 208h, 50,752 suites
► Av. Size: 244 r.
Highlights
Locations
►Every room is a spacious two-room suite to relax
and spread out, which includes the Embassy
Essentials Bedding Collection
►Fitness center
►Complimentary Manager’s Reception is held
every evening, featuring beverages and light
appetizers.
►Gateway cities
(1)
Geographical Breakdown
►Mainly US (only 9 h. outside)
(2)
Pipeline
►35 h. / 7,121 r.
►US mainly
Main competitors
►Differentiated product: niche market
13
Source: Hilton Website
(1) based on nb of h. as of March 2011
(2) Lodging Econometrics Q4 2010
Hilton – Company profile
FY 2010
8. Brands description
Full-service – Hilton
Overview
Network
Full service, Upper-upscale
Network
►One of the most recognized name in the industry
►One of the leader of hospitality (hotels in 76
countries)
►Flagship brand of Hilton worldwide
► 561 hotels, 201,960 rooms
►Av. Size: 360 r.
Locations
►Most of the major cities worldwide
Highlights
(1)
►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 boasting
175,000 SF of meeting space to the majestic
Hilton Bora Bora Nui Resort and Spa featuring
over water villas
►In-room Hilton Serenity Collection features the
Hilton Serenity Bed, linens and custom-designed
hammered stainless steel accessories
Geographical Breakdown
►Global Footprint: 79 countries
8%
5%
11%
28%
(2)
Pipeline
►112 h. / 33,934 r.
23%
6%
►Sofitel, Grand Hyatt, Intercontinental, Westin,
Conrad
Source: Hilton Website
(1) based on nb of h. as of March 2011
(2) Lodging Econometrics Q4 2010 (graph based on nb of r.)
11%
16%
Main competitors
14
48%
North America
Europe
APAC
Latin America
MEA
44%
Hilton – Company profile
FY 2010
North America
Europe
APAC
Latin America
MEA
8. Brands description
Full-service – Double Tree (1/2)
Overview
Network
Full service, Upscale
Network
►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
► 247 hotels, 62,985 rooms
► Av. Size: 255 r.
Locations
►Gateway cities, metropolitan areas, vacation
destinations
(1)
Geographical Breakdown
►Mainly US but global expansion on its way
2%2%
9% 4%
Highlights
►Meeting and event facilities at Doubletree hotels
and resorts range from 2,500 to 150,000 square
feet
►Fitness facilities
►One of the fastest growing upscale brands
(network grew by more than 40% since 2000)
83%
(2)
Pipeline
►50 h. / 10,289 r.
8%17%
2%
Main competitors
43%
►Pullman, Sheraton, Marriott H&R, Grand Plaza,
Hyatt Regency
15
Source: Hilton Website
(1) based on nb of h. as of March 2011
(2) Lodging Econometrics Q4 2010 (graph based on nb of r.)
North America
Europe
APAC
Latin America
MEA
Hilton – Company profile
FY 2010
30%
North America
Europe
APAC
Latin America
MEA
8. Brands description
Full-service – Double Tree (2/2)

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.
1969
• Creation of
DoubleTree Hotels in
the US
16
1999
• Merger between
Hilton Hotels
Corporation and
Promus Hotels
Corporation,
DoubleTree’s parent
company
2008
• 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.
2011
• 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
8. Brands description
Limited service – Hilton Garden Inn
Overview
Network
Limited service, Midscale
Network
►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)
► 512 hotels, 70,144 rooms
► Av. Size: 137 r.
Highlights
Geographical Breakdown
►Meeting rooms
►Snacks available
►Swimming pool and fitness center available in
most hotels
►Mainly North America
Locations
►All major and secondary cities in the US
(1)
3%1%
0%
0%
North America
Europe
APAC
Latin America
MEA
96%
Main competitors
►Novotel, Hilton Garden Inn, Ramada, Holliday Inn,
Hyatt Place
(2)
Pipeline
►145 h. / 21,436 r.
9% 1%
1%
25%
64%
17
Source: Hilton Website
(1) based on nb of h. as of March 2011
(2) Lodging Econometrics Q4 2010 (graph based on nb of r.)
Hilton – Company profile
FY 2010
North America
Europe
APAC
Latin America
MEA
8. Brands description
Limited service – Hampton
Overview
Network
Limited service, Midscale
Network
►Hampton brand was refreshed in 2004, unveiling
more than 60 new products and standards.
►Hampton Inn & Hampton Inn & Suites
►1,864hotels, 182,672 rooms
► Av. Size: 98 r.
Locations
Highlights
►All major and secondary cities in the US
►Crisp and cozy bed
►Fitness room
(1)
Geographical Breakdown
►Mainly North America (99%)
►Strongest in the US, in 2009 Hampton opened its
first “Hampton by Hilton” hotel in the UK
Main competitors
►Courtyard, Fairfield Inn, Holliday Inn Express
(2)
Pipeline
►Mainly North America
►332 h. / 33,338 r.
18
Source: Hilton Website
(1) based on nb of h. as of March 2011
(2) Lodging Econometrics Q4 2010
Hilton – Company profile
FY 2010
8. Brands description
Extended stay – Homewood Suites
Overview
Network
Extended stay, Limited service, Upscale
Network
►More than 275 h. throughout the US, Canada and
Mexico
►Comfortable and home-like accomodations when
travelling for an extended stay
►307 h., 33,370 r.
► Av. Size: 110 r.
Locations
►Selected key cities
Highlights
►Separate living and sleeping areas
►Fully-equipped kitchens
►Complimentary internet
►Evening meals Monday-Thursday
(1)
Geographical Breakdown
►North America only (1 in Latin America)
(2)
Pipeline
►67 h. / 7,339 r.
►2 projects in India
Main competitors
►Hawthorn Suites, Residence Inn, Baymont Inn &
Suites, Summerfield Suites
19
Source: Hilton Website
(1) based on nb of h. as of March 2011
(2) Lodging Econometrics Q4 2010
Hilton – Company profile
FY 2010
8. Brands description
Extended stay – Home 2
Overview
Network
Extended stay, Limited service, Midscale
Network
►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
►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
Highlights
Pipeline
►Separate living and sleeping areas
►Industry-unique “working wall”
which incorporates the kitchen and a flexible
working/media space
►Fully accessorized kitchen
►61 h. / 6,046 r.(US only)
Locations
►Selected key cities
Geographical Breakdown
►USA only
(1)
Main competitors
►Marriott's TownePlace Suites and
InterContinental's Candlewood Suites
20
Source: Hilton Website, Euromonitor
(1) Lodging Econometrics Q4 2010
Hilton – Company profile
FY 2010
8. Brands description
Timeshare – Hilton Grand Vacations
Overview
Network
Timeshare, Upscale
Network
►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
►38 properties, 4,500 rooms
Highlights
Geographical Breakdown
Locations
►Select vacation destinations
►Mainly North America (4 properties in Europe,
including 3 in Scotland)
►Studios and spacious 1, 2 and 3 bedroom
accommodations
►On-property amenities may include: swimming
pool, spas, exercise facilities, sports courts, video
arcades and restaurants
Main competitors
►Marriott Vacation Club
21
Source: Hilton Website
Hilton – Company profile
FY 2010