Hotel & Motel Management - November 19, 2007 - (Page 28)

28 News H&MM November 19, 2007 | HotelMotel.com www.HotelMotel.com/digital_edition Nassetta Continued from page 1 Nassetta said he looks forward to contributing his experience in both private and public sector companies to the Hilton family. As president and c.e.o. of Host since 2000, Nassetta built the realestate investment trust into the largest REIT in the industry. Formerly Host Marriott, the company converted to a REIT in 1998 and owns 121 properties comprising 64,000 guestrooms globally. “When I took over as c.e.o. [of Host], it was a plus or minus $8billion company, and the enterprise value of the company today is $18 billion,” he said. “Signiﬁcant merger-and-acquisition activity, including the Starwood deal [Host bought 28 hotels from Starwood Hotels & Resorts in 2006], is something I’m proud of. “Hilton is a great company that has accomplished great things; there’s nothing broken about it,” he said. “There’s an opportunity to take its existing strategy and platform and enhance it. ” Hilton has 2,896 properties totaling 500,000 guestrooms in 76 countries. Its brands include Hilton, Conrad Hotels & Resorts, Doubletree, Embassy Suites Hotels, Hampton Inn, Hampton Inn & Suites, Hilton Garden Inn, Hilton Grand Vacations, Homewood Suites by Hilton and The Waldorf=Astoria Collection. What does Nassetta say about going from a publicly traded REIT to a newly private company? “Half my career to date has been in the private sector and half has been public, so I see the pros and cons of both,” he said. “I’m certainly not running away from the public company world. But some of the tasks that consume time in a public organization will be gone, and that time effectively will be recycled into maximizing the value of the investment.” Nassetta said Hilton will take advantage of its new ﬂexibility as a private company to keep building market share for all the company’s brands here and abroad. “The momentum Hilton has in the U.S. is around brands including Hilton Garden Inn, Homewood and Embassy Suites,” he said. “They are leading their segments in market share, and we will continue to grow those brands.” Focus on growth, luxury Nassetta’s reputation as a big-deal maker, particularly in the luxury segment, should be attractive to Blackstone, which has said publicly that two goals for Hilton will be to build all brands internationally and to fortify the company’s highend brands, including Conrad and The Waldorf=Astoria Collection. “Very quickly, we’re going to integrate signiﬁcant Blackstone [luxury] assets the company owns outside of Hilton into the Hilton family,” Nassetta said. Two likely candidates include Blackstone LXR Luxury Resorts assets the Boca Raton Resort & Club in Boca Raton, Fla., and the El Conquistador in Fajardo, Puerto Rico. Nassetta conﬁrmed the properties Blackstone acquired in its deal to purchase La Quinta Corp. in early 2006 will stay out of the Hilton system. He also is sure of Blackstone’s commitment to keeping the Hilton family just that—a family. “Blackstone recognizes the value of the company is much greater when these brands are combined,” he said. “They’re not going to break it apart and sell brands. This is a strategic initiative for them. “The best testimonial to that is that I’m here,” Nassetta said. Looking ahead The people, the brand and working with The Blackstone Group are the things Nassetta said he looks forward to most. He said he enjoys working with Blackstone’s principals, especially senior managing director Jonathan Gray. “We have had a long-term business relationship,” he said. “When [Host] did a deal with them in 1998, they became [Host’s] largest shareholder, and I saw how valuable they will be as a partner.” When asked if he thinks Blackstone still will own Hilton in ﬁve years, Nassetta said, “Yes, I do.” sricca@questex.com Music And Lyrics on HBO Dreamgirls on HBO HBO®, winner of 21 Emmy® Awards in 2007, provides your guests the best in-room entertainment available. http://HotelMotel.com http://www.HotelMotel.com/digital_edition

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Hotel & Motel Management - November 19, 2007 Contents Torrid Hotel Sales Pace Persists Boykin Takes Steps to Regain Foothold Best Western Sets 10-year Plan Perspective At Your Risk HotelWorld Update Sales Clinic Events Trends & Stats Charting H&MM's Top Lodging Design Firms Fitness Equipment Supplier News PMS Software Provides One-Click Solutions High-Quality Linens Require Higher-Quality Cleaning Despite Slow Market, Condo Hotels Thrive Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - November 19, 2007

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