Design Hotels

Hilton, a famous name which is known for the finest hospitality in the world, offers a wide range of accommodation services and resorts to travelers. Hilton is the only hotel, which holds several numbers of brands such as Hilton® Hotels and Resorts, Homewood Suites by Hilton®, Hampton Inn®, Home2 Suites by Hilton™, Doubletree®, Waldorf Hotels & Resorts® and Conrad® Hotels and Resorts, etcetera in its kitty.

All these brands are supported by the Hilton’s integrated worldwide customer deliver systems. Hilton was opened in the year 1919 and started franchising activities from the year 1967. As per 2010 data, the Hilton Hotels and Resorts has got 194 United States franchises and 44 Non United States franchises.

As early as 1943, it became the first coast-to-coast hotel in the United States. Hilton hotels are located in Beverly Hills and are considered to be the most luxurious hotels especially for lodging. They have been serving customers in all parts of America for nearly 80 years now and all the travelling packages offered by holiday managers and travel agents include Hilton as travelers’ favorite hotel.

There is an array of world-class services available here. Franchise will be on a long term basis. The kind of presence that the Hilton Hotels and Resorts have across the world is amazing. 2,700 hotels in the five continents attest to its worldwide standards and international success.

Hilton Honors, the guest loyalty program is unique for its combination of rewarding customers for both their air-travel and stay.

The major news is that Hilton has been appearing consistently in the AllStar List for the past three years. One can see Hilton in 110th place in the AllStar 2009 list and the 115th place in 2010 list. With the augmented rankings, increased web visibility and uniformity of franchises, the financial strength of the company has been increasing year after year. (more…)

The late Tip O’Neill, a wise old politician and Speaker of the House, on his profession, opinioned that “all politics is local”. So it is with Hotel Management. The top ranked brand-name chain image, their franchise quality control programs, their franchise support department, even the vaunted high-tech central reservation system, while all necessary, are not as effective in insuring the commercial success of the hotel property as much as dedicated local management.

If you are considering an investment for a franchised hotel, you are aware that both the risks and rewards are significant. With that awareness, as many investors in your position have done, you may be tempted to turn over your hotel franchise management to your franchisor, especially if that company successfully operates their own properties, for example, companies like Marriott, Hilton, Sheraton, or Holiday Inns. Sounds prudent, because they have the know-how and experience to draw on, that you don’t, and being astute, you know management is most important. But that may be a major mistake. Here’s why:

1. If you are an independent franchisee, chances are your hotel is not large by chain standards; while approximately 75% of all properties are franchised, most are under 200 rooms.

2. The franchisor/operator will provide you with a management contract making them the Management Operator over a specified period of years, perhaps as little as 5, and as many as 20. In that contract, the Management Operator will receive a fixed rate, usually based on a percentage of the total sales, and a supplemental fee against a percentage of the operating profit, i.e. before fixed expenses called an “incentive fee”. The management fee, of course. will include the manager’s salary that they provide, but the actual fee will be many time his salary and will include various charges for reservations, marketing, and other services as a part of the regional and national network of operated hotels. But that’s not the major concern; this is: the manager selected for your 125 room property will be at the lower end of the experience scale so that his salary will be commensurate with the size of the property! (more…)