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Hilton Hotel

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Hilton Hotel
Strategic Management Case Analysis

Introduction

“It has been, and continues to be, our responsibility to fill the earth with the light and warmth of hospitality.”1

This is the stated philosophy of the luxury hotel company that Conrad Hilton, the founder of Hilton Hotels, used to extend his desire for his company to offer customers a kind, hospitable, and luxury setting. Conrad started the hotel chain by purchasing a single 40- room hotel from Cisco, Texas in 1919. Since then the corporation has grown into more than 2,800 hotels and 490,000 rooms in more than 80 countries as of 2006.

Hilton Hotels Corporation headcourters are located in Beverly Hills, California. It is known as the leading hotel company in the United States and globally. The Company owns, manages, and franchises Hilton, Conrad, Doubletree, Embassy Suites and Hotels, Hampton Inn, Hampton Inn and Suites, Hilton Garden Inn, Hilton Grande Vacations, Homewood Suites, and The Waldorf= Astoria Collection.

Identification of the Industry

Hilton Hotels compete worldwide in the lodging industry. Hotel stays are on the rise because people are traveling more with their jobs and as tourists. As a result of the increase in the need for hotels, more hotels are being built to meet larger demands. The hotel industry must offer different types of rooms because they must cater to the needs of everyone. Hilton offers guests the widest possible variety of hotel experiences, including four-star city center hotels, convention properties, all-suite hotels, extended stay, mid-priced focused service, destination resorts, vacation ownership, airport hotels and conference centers.

The industry competes in a number of areas such as owning hotels, managing and franchising, vacation ownership, and internationally.

Marriott Hotels

Hyatt Choice Hotels

Hilton Hotels

Best Western Intercontinental

Starwood Hotels
Industry Profitability

Intensity of Rivalry. The hotel industry faces competition

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