Hilton Hotels reunited after 32 years
Tuesday 14 January 1997
The deal creates a worldwide marketing alliance for the 400 Hilton hotels in 49 countries which have operated under different control within and outside the US since 1964 when Hilton International (HIC) was spun off from Hilton Hotels. Ladbroke acquired HIC in 1987.
Peter George, chief executive of Ladbroke, said all options, including a takeover of Hilton by Ladbroke, had been explored over the past year. For a variety of reasons, including tax complications, however, it had been decided that the best way forward lay in a marketing, customer loyalty and reservations co-operation between the two companies.
He said: "There is no hidden agenda. There is no intention to merge and last year we did look at every option. But in the fullness of time who knows? I'm not ruling it out."
The companies said that the deal covering sales and marketing, loyalty programmes and development would fuel sales growth and dispel the confusion that has surrounded the two groups in recent years.
The details of the deal unveiled yesterday allow for a 20-year agreement between the two companies, twice as long as envisaged last summer when the proposal was first announced. Another significant change was the decision by the companies not to invest in the actual hotel assets owned by the other party to the agreement.
The deal allows for both sides to take a stake of up to 20 per cent in the other and yesterday Stephen Bollenbach, president of HHC, said it was the American company's intention to acquire a 5 per cent holding in Ladbroke in due course. If that stake came in the form of new shares it would represent a cash inflow of more than pounds 130m for Ladbroke, but the stake could also be bought in the market.
Mr Bollenbach will join Ladbroke's board and Peter George is to be appointed as a non-executive director of Hilton Hotels.
The implementation of the sales and marketing elements of the alliance will be overseen by three jointly owned companies with responsibility for promoting Hilton as a uniform brand world-wide, operating the Hilton customer loyalty programme, and operating the existing world-wide joint reservation system.
The two companies have also cleared up an area of historical conflict by licensing the Conrad name to HIC for future development outside the US for a period of 20 years.
Conrad, which has only 10 hotels in the chain, had been Hilton Hotels' vehicle for expansion outside the US and was the cause of legal dispute between the two.
Culinary experts in The Netherlands thought it was 'fresh' and 'tasty'
Of all the computers Apple has ever made there’s only one that Steve Jobs had to sell his car to finance
Actress sees off speculation about her face in an amazing way
Marvel has released first teaser trailer week early after it leaked online
The sound of Goodfellas mafioso Frankie Carbone demanding $250m in “damages” would be chilling enough on film, let alone in real life.
- 1 Nokia no more: Microsoft drops once-ubiquitous mobile name – in favour of its Lumia brand
- 2 Renee Zellweger on plastic surgery: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 Paralysed man Darek Fidyka walks again after treatment by British doctors on brink of 'cure' for paralysis
Ottawa shooting: Canadian soldier dies after being shot at National War Memorial – with one gunman killed inside parliament
Renee Zellweger on plastic surgery: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
Isis releases first video showing the stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Diwali: What is the festival of lights and how is it celebrated around the world?
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...