Hilton is unique as it is owned by a private equity company (Blackstone Group). How does that make things different for you?
We have been very focussed on spreading our international platform and brands in more geographies. And being private has actually helped that. If we were a public company, many things that we wanted to do would have been far more challenging. We took advantage of the slowdown to try and advance some of our objectives internally, like integrating our global platform. The company had been bifurcated into the US and global operations in the 1960s and as a result wasn't totally integrated.
In India, Hilton has only a token presence. What are your plans here?
We happen to be quite underrepresented in one of the most important markets in the world, and that is why I'm here and now we have a full team on the ground. Today, we have one hotel open. Depending on timing, we should have 3-5 new properties by the end of 2010, including the re-entry of the Hilton brand in India with Hilton Janakpuri (in the western part of New Delhi), which may open this month. Over the next 7-10 years, we plan to have around 100 hotels here. And this will be just a start for us, because we have 10 brands and over time we would work towards bringing them here.
What's your business model? Do you manage your properties or give them to franchisees?
The 15 hotels that we have under planning and construction are a mixture of managed and franchised—the majority is managed. Increasingly, as our presence grows in India, you will see a larger percentage of franchising. But there will be no stand-alone franchise property. For example, with Hampton Inn, we have a strategic development plan with a partner who will develop a dozen Hampton Inns. There is a lot of efficiency in doing many deals with one partner.
Last year was a bad year. Do you see a recovery in business travel?
I don't think 2010 will be a very positive year in most geographies across the world. But on the whole, we expect that 2010 will be a lot better than 2009. Let me add that despite the challenging business environment, we opened 302 new hotels across the world in 2009.
HILTON GROUP: SNAPSHOT
