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Reuniting Hilton Hotels Corp. and Britain's Hilton Group Plc
Would Create World's 5th Largest  Hotel Company
with over 453,000 Rooms

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Paris, October 20th 2005 
  • After their split in 1964, the American business Hilton Hotels Corporation and its British equivalent, Hilton Group, could once again become one group. If the current negotiations are successful, it would result in the purchase of 395 Hilton International hotels by Hilton Hotels Corporation.
  • By taking in the hotel capacity of the Hilton Group, the American Hilton Hotels Corporation would find a new place on the classification table of worldwide hotels. Passing from 6th to 5th, it would take over the Choice group in the classification table. 
The British group, Hilton Group, with its 395 hotels across the world (of which the Scandic brand is an example), announces discussions for the sale of its hotels to the American Hilton Hotels Corporation. This operation would cost an estimated 5,26 millions euros. 

At the birth of the hotel corporation, the two groups were in fact linked and formed one sole title. It was in 1964 that the brand ‘Hilton’ split into two parts: Hilton Hotels Corporation continues to manage the United States hotels whilst the British group, Ladbrokes takes over the other market. 

In terms of political marketing, loyalty schemes and reservations, the operation of the two hotel structures remains closely linked. In 41 years, the question of a merger between the two companies has often been mooted.

The current boom in the American hotel market has almost certainly accelerated the process. Moreover, Hilton Hotels Corporation is showing its intention to develop outside of the United States.

If this operation goes ahead, Hilton Hotels Corporation would win a place in the classification of worldwide hotel groups, with more than 453,000 rooms and would overtake Choice by more than 50,000 rooms.  This hypothetical classification takes into account the recent buyback of Le Meridien by Starwood Capital Group LLC and the consequent merger of Le Meridien with other hotels of the American group Starwood Hotels & Resorts.
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Classification of the worldwide hotel groups
Rank 2005 before the sale Rank 2005 after the sale Groups 2005 (after sale) Hotels 2005 (after sale) Rooms 2005 (after sale) Hotels 2005 (after sale) Rooms Increase in Rooms
1 1 Intercontinental Hotels Group  3 532  532 701  3 532  532 701 
2 2 Cendant  6 396  520 860  6 396  520 860
3 3 Marriott International  2 564  469 218  2 564  469 218
4 4 Accor  3 973  463 427  3 973  463 427
6 5 Hilton Corp.  2 226  354 312  2 621  453 569  99 257
5 6 Choice  4 987  403 806  4 987  403 806
7 7 Best Western  4 097  308 131  4 097  308 131
8 8 Starwood  868  263 954  868  263 954
9 9 Carlson Hospitality Worldwide  890  147 093  890  147 093
10 10 Global Hyatt  355  111 651  355  111 651
(Source: MKG Consulting October 2005)
* Classifications based upon the hotel situation of January 1st 2005; with the exception of the
Starwood group for which we have taken in to account the recent purchase of the Le Meridien. 
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However, the linking of the Hilton group and Hilton Hotels Corporation would have no consequence on the position of the brand name « Hilton » on the European level because at the moment Hilton Hotels Corporation has no hotels in Europe. Hilton Hotels Corporation simply takes the place of Hilton International at 5th place of the European hotel groups. The power of American groups in Europe therefore, is being reinforced and confirms the dynamism of American enterprises. 
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Contact:

Georges Panayotis
+ 33 (0)1 56 56 87 90
georges.panayotis@mkg-group.com

MKG Consulting Database Department 
+ 33 (0)1 56 56 87 87
bdd@mkg-consulting.com

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Also See: The Worldwide Ranking of Hotel Groups 2003; The World’s Top Ten International Groups Increase Their Supply by 2.6% / MKG / April 2003
The Worldwide Ranking of Hotel Groups; The worldwide supply of hotel groups grows by 3% in 2001 (4.9 million rooms) / June 2002


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