Hilton Hotel Case Study

Moreover, there are many aspects that support Hilton’s influence in the hospitality industry. One of them include Hilton’s most valuable asset, their reputation. Being acknowledged for their multiple brands of hotels and thousands of properties worldwide, they are among the top earners in the business. In a research conducted by Statista, Hilton had a revenue of $11.66 billion dollars in 2016, making them the 3rd most profitable hotel brand in the industry (....). As the brand continues to grow, they are expanding their presence in foreign lands like Saudi Arabia, Turkey, and China. Guests from all over the world choose to stay at a Hilton brand in the three countries specifically for their brand loyalty. In an news article, Hilton Hotels

One of the biggest losses was in 2010 when Hilton’s debt restructuring had created a lose of $180 Millions for the Federal Reserve Bank ( Guerrera). Three years later, in 2013, Hilton was faced with a different financial problem which was the bond debt of $2.5 Million that made Hilton used their reverse funds and occupancy tax to pay off the interest (Reutter). And then the next year, In 2014, Hilton lost $5.6 Million instead of the plan of making $7 Million in profit ( Broadwater). Despite those problems in the last five years, Hilton revenue still increased steadily throughout the years. Hilton is using different POS systems to control and manage their business depending on the brands. They mostly use Agilysys POS system for their luxury brands such as Waldorf Astoria Hotel and resort and Curio resorts. They also use Micros POS systems from Oracle company for a lot of their other hotels such as Embassy Suites, etc. Having popular and good POS systems, they can control their businesses in any hotels easier and faster. In the financial report of 2016, they said that they want to focus more on management, franchise and timeshare. By the end of 2016, Hilton had been franchising 4,175 hotels with 573,404 rooms. By doing franchising, they can collect the fee from their franchisees which include application fee, royalty fee, monthly program fee and quality assurance program cost which brought them a lot of profits and also helped expanding their brands. Beside franchising, they also focused on hotel and timeshare management, which they also collected a certain fee: a base management fee, incentive and monthly fee. For hotel and timeshare management, Hilton has more benefits since the owners pay for all the other necessary fees and charges which including operation fee and other