Dealmaker § Hilton’s Hotel Hustle

MONDAY JUNE 02
Hilton’s Hotel Hustle

What do you need to make it in the cutthroat world of posh boutique hotels? How about hiring the hottest luxury pundits money can buy? That is, if you can steal them away from their latest captors. But is it worth the dough?

June 2008

As part of an ambitious plan to nearly double its luxury properties in the next year and create an upscale boutique hotel brand, Hilton Hotels Corp. has hired two luxury gurus away from competitor Starwood Hotels & Resorts Worldwide Inc.

Hilton is expected to announce Monday the appointment of Ross Klein as global head of luxury and lifestyle brands for Hilton and Amar Lalvani as global head of luxury and lifestyle brand development. The moves are geared toward vaulting Hilton ahead in the luxury category, where it has trailed competitors.

Both men played key roles in Starwood's highly successful W Hotels brand. Mr. Klein, formerly president of Starwood's luxury brand group, also had a big part in launching aloft, Starwood's newest boutique brand. At Starwood, Mr. Lalvani was senior vice president of development for luxury brands and global head of development for W.

Hilton Hotels Chief Executive and President Christopher Nassetta said the appointments are a significant step toward "expanding the Hilton global platform."

Hilton's drive into the luxury segment comes nearly a year after private-equity colossus Blackstone Group LP struck a deal to buy the hotel company for $20 billion.

Shortly after Blackstone closed the deal, it hired Mr. Nassetta, a well-known and highly regarded hotel executive, to run the company. Mr. Nassetta, formerly CEO of Host Hotels, was charged early on with expanding Hilton's luxury properties and creating a luxury boutique brand, such as W.

Hilton has a strong presence in the upscale and budget sectors with brands like DoubleTree and Hampton Inn. But it has lagged in luxury, with only 19 luxury properties spread between two brands: Conrad and Waldorf-Astoria.

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