Hilton Hotel Corporation (HHC) is a well established organization and industry leader in the hotel, hospitality and gaming industry.
HHC is well diversified across the industry with hotels in the high end, business and mid-priced classes in their product mix.
HHC also possesses solid integration features such as owning the companies that manufacture its furniture and has invested in online reservation travel enterprises.
Weaknesses
HHC may be two narrowly focused making it vulnerable to a downturn in the global economy and other world-wide catastrophes that could limit global travel such as the bird-flu and a significant terrorist strike.
HHC may be vulnerable to workers’ strikes and crack down on undocumented workers in the U.S. Most of its holdings are in the U.S.
Opportunities
HHC should offer an array of distinctive and specialized services to the high end guests and high rollers such as
Wedding planning & hosting
Spas that specialize in personal services
Personal trainers
HHC should look to expand into or acquire a cruise line
A cruise ship is little more than a hotel that floats this would essentially match what it currently does with its leased properties
Gaming activities would escape regulation, etc.
Take advantage of emerging markets, especially with business class and mid-priced markets
Threats
HHC must be careful not overextend its efforts to mix entertainment and gaming.
Also the extension of credit and other side effects of gaming can slowly but surely nibble away profits.
September 11th was a major blow to the hotel industry. A similar event could result in another down turn.