Business Expansion Strategies: A Case Study of Hilton Hotels

This report provides an in-depth analysis of the expansion strategies employed by Hilton Hotels and Resorts in the hospitality industry. It begins with an executive summary outlining the paper's focus on international expansion and the keys to Hilton's success, emphasizing guest satisfaction and service quality. The report delves into Hilton's background, highlighting its founding, global presence, and target audience, and then examines various expansion strategies, including securing business loans, leveraging investor roles, developing new target segments, and addressing cross-cultural issues. The report also explores Hilton's strategies for organic growth, job creation, employee management, and guest loyalty programs, concluding that these factors have positioned Hilton as a leading hotel organization in the modern hospitality industry. The report concludes by emphasizing the importance of these strategies and the role of understanding guest behavior and cultures in achieving success.

Running head: INTEGRATED BUSINESS MANAGEMENT PROJECT
Integrated Business Management Project
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Executive Summary
The following paper aims at the expansion strategies of the hospitality industry. The success of
the hospitality industry revolves around the satisfaction of the guests and the best services
provided to them. This is why the selected organization for completing this paper is Hilton
Hotels and Resorts in USA. The background of the organization has been provided with their
expansion strategies and the keys to success of theirs. It has helped them to understand better the
causes of development of Hilton Hotels and Resorts. These expansion strategies in foreign
markets can be effective for all the companies.

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Table of Contents
Introduction......................................................................................................................................3
Background of the organization.......................................................................................................3
Foreign expansion strategies............................................................................................................4
Business loans..............................................................................................................................4
Investor role.................................................................................................................................4
Developing new target segments.................................................................................................5
Hilton Hotel expansion strategy......................................................................................................5
Cross cultural issues....................................................................................................................5
Development of organic growth..................................................................................................6
Creating new jobs and managing employees...............................................................................6
Guest loyalty programs................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
The following paper is about the various aspects of the expansion strategies that are taken
by the various organizations in their respective industries. These expansion strategies are very
important for the organizations as they need to grow their business worldwide. The growth and
expansion of a business organization is something that is of utmost importance. The chosen
industry for completing this paper is the hotel and hospitality industry. The organization that has
been selected in this perspective is the Hilton Hotels and Resorts. The business expansion
strategies have to be discussed in this aspect of this selected hotel.
Background of the organization
Hilton Hotels and Resorts is one of the global hotels that have been one of the leading
ones. The company was founded in the year 1919 by Conrad Hilton.1 It serves a worldwide area.
The parent organization of the Hotel Hilton is Hilton Worldwide. This hotel is looked upon as
the flagship brand of Hilton. One of the biggest and best branch organizations is the Beverly
Hilton that is situated in the Beverly Hills. Hilton arranges several programs and events all
around the world all through the year. The target audience of this hotel organization is both the
kinds of people who come for business and leisure travelling.2 This organization was primarily
formed in Texas and then it spread throughout the world.
1 Hilton Hotels And Resorts - Find Hotel Rooms. Www3.hilton.com. N.p., 2017. Web. 11 Sept. 2017.
2 Tajeddini, Kayhan, and Myfanwy Trueman. "Managing Swiss Hospitality: How cultural antecedents of innovation
and customer-oriented value systems can influence performance in the hotel industry." International Journal of
Hospitality Management 31.4 (2012): 1119-1129.

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The organization has taken up such strategies by which they have expanded in the biggest
countries of the world. All around the world, more than 550 hotels can be found which the
branches of this main hotel are and they are stretched around 85 countries in the world. The
hotels have to adopt certain expansion strategies by which they can dominate the hospitality
industry.
Foreign expansion strategies
There are some modes or methods behind the expansion of the hotels and these methods
can be divided into several sections. These expansion strategies are:
Business loans
In order to expand into the international market, the hotels need to have a financial
background behind them. It would help them to have a strong root in the country they are
expanding into. 3 This can be acquired by either a traditional bank or a business loan. The loan
has to be taken by comparing the size of the business.
Investor role
The investors are one of the chief stakeholders of any business. Likewise, hotel industry
too has to be followed up by the Venture Capital investments.4 The investors have to be there all
3 Denning, Stephen. "An economy of access is opening for business: five strategies for success." Strategy &
Leadership 42.4 (2014): 14-21.
4 Bodie, Zvi. Investments. McGraw-Hill, 2013.

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time in times of any need. The experienced hotel organizations have a good deal of stakeholder
support behind them and this is one of their chief powers behind success.
Developing new target segments
The hotel organizations need to develop new target segments for their expansion.
Otherwise, they will not be able to thrive in this competitive business environment. The hotel
organizations should aim to provide diversified strategies in catering to the needs of different
target segments.5 On one hand they should be fulfilling the desires of the middle class family
travelers as well as catering to the needs of the upper class people. This would serve them the
best opportunities for betterment.
Hilton Hotel expansion strategy
As Hilton Hotels and Resorts is a very renowned and popular destination for the
travelers, they have felt the urge to spread in different countries in the different continents by
providing the best lodging experience for their clients. Some strategies they have focused on
are:-
Cross cultural issues
Whenever a hotel organization expands from their home country to another country and
perhaps a different continent, they must face the cross-cultural problems. This creates a
communication gap between the hotel authority and the local people. This gap has been created
in case of Hilton Hotel as well. They sorted out these issues by recruiting people with a good
command over the native language of the country they are expanding in. Another striking aspect
5 Bowie, David, et al. Hospitality marketing. Taylor & Francis, 2016.

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is the fact that they had trained their employees to behave properly in order to gain the brand
reputation.
Development of organic growth
One of the most crucial aspects of the growth of Hilton Hotel is their focus on the organic
growth.6 They were led by 12 market-leading and clearly-defined brands. This resulted Hilton
hotels to rise above the market obstacles. Thus they had achieved the feat to be called the fastest
growing hospitality company.
Creating new jobs and managing employees
The management of employees is one of the most significant works for any company in
the world. Hilton Hotel had focused in this aspect as well. They had created more than 20000
new hotel jobs in the last few years. This has motivated the youth and they have equally
responded to the needs of the employees by providing them with various facilities.7 They have
given them good wages and added benefits that have made them work for the organization with
complete dedication.
Guest loyalty programs
The reason for their success can be seen from another angle and i.e. their successful guest
loyalty programs. They have always been loyal towards their guests. This is a positive influence
6 Ivasciuc, Ioana Simona. "Organic Growth Marketing Strategies in Hospitality Industry." International Journal of
Economic Practices and Theories 4.5 (2014): 626-636.
7 Lazaroiu, George. "Employee Motivation and Job Performance." Linguistic and Philosophical Investigations 14
(2015): 97.

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on the minds of the guests. They have opened expanded their hotel outlets in China where they
have faced opposite culture compared to that of USA. They have made partnerships with the
Plateno Hotel Group that has made it a kind of joint venture.8 This is one of the most effective
market penetration strategies. They have provided their guests with best services possible with
charming etiquette from their hotel representatives. These factors have brought them the ultimate
the ultimate success.
Conclusion
The paper can be concluded by highlighting upon the fact Hilton Hotels and Resorts has
proved themselves to be one of the most advanced and successful hotel organizations in the
modern hospitality industry. Several factors are responsible for this. They have adopted the
successful expansion strategies along with providing the guests with best services by
understanding their behaviors and cultures. Together, these things have positioned them here.
8 Altinay, Levent, Alexandros Paraskevas, and SooCheong Shawn Jang. Planning research in hospitality and
tourism. Routledge, 2015.

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References
Altinay, Levent, Alexandros Paraskevas, and SooCheong Shawn Jang. Planning research in
hospitality and tourism. Routledge, 2015.
Bodie, Zvi. Investments. McGraw-Hill, 2013.
Bowie, David, et al. Hospitality marketing. Taylor & Francis, 2016.
Denning, Stephen. "An economy of access is opening for business: five strategies for
success." Strategy & Leadership 42.4 (2014): 14-21.
Hilton Hotels And Resorts - Find Hotel Rooms. Www3.hilton.com. N.p., 2017. Web. 11 Sept.
2017.
Ivasciuc, Ioana Simona. "Organic Growth Marketing Strategies in Hospitality
Industry." International Journal of Economic Practices and Theories 4.5 (2014): 626-636.
Lazaroiu, George. "Employee Motivation and Job Performance." Linguistic and Philosophical
Investigations 14 (2015): 97.
Tajeddini, Kayhan, and Myfanwy Trueman. "Managing Swiss Hospitality: How cultural
antecedents of innovation and customer-oriented value systems can influence performance in the
hotel industry." International Journal of Hospitality Management 31.4 (2012): 1119-1129.