submonte

Acquiring FRHI would add more than 140 Fairmont, Swissotel and Raffles branded luxury and upscale hotels (incl. those in construction and under developement) all over the world to the Hilton Worldwide portfolio. They could be reflagged as Waldorf-Astoria, Conrad, Curio, Hilton vs. Ritz-Carlton, St. Regis, Luxury Collection, Westin, Sheraton (which might disappear eventually I have read here in SPG threads), some in Europe also, where Hiltonīs presence is poor in the luxury and upscale segment (except partly UK):

- Fairmont Vier Jahreszeiten, Hamburg/Germany - A Waldorf-Astoria Hotel
- Fairmont Monte Carlo - to be reflagged as Waldorf-Astoria or Conrad
- Fairmont Montreux/Switzerland - Waldorf-Astoria Montreux
- The Sayoy, London - A Waldorf-Astoria Hotel
- Fairmont Barcelona - Conrad Barcelona
- Fairmont St. Andrews - Curio or a 2nd W-A in Scotland
- Le Royal Monceau, Raffles Paris - A Waldorf-Astoria Hotel
- not to forget Raffles Istanbul - Waldorf Astoria Istanbul
- and two in former USSR

Swissotels in Europe could be rebranded as Conrad or Hilton or Doubletree, or eventually Curio brands. 38 Fairmont hotels and resorts in North America! - could be reflagged as W-A or Conrad, many hotels in Middle-East and Africa, some in Asia also.

At least for Europe IMHO this would be an answer to the Marriott+Starwood dominance in these segments, although still not enough (Italy, Spain, Germany, France, and donīt forget SPGīs new contract with Design Hotels as a boutique brand), and strengthen the presence in North America. In the midscale segment I believe Hilton is strong enough and capable enough for an organic growth, which might be anyway the better way to gain profit (said Mr. Nassetta), and it was announced earlier to do, and already partly scheduled (20 Hamptons in the coming years in Germany, some Austria). And that announced brand below Hampton would bring Hilton in a pole position as I do not see Marriott has got it so consequently, Starwood for sure has nothing like this.

Or an acquisition of IHG could be an option. That would strengthen IMHO all segments from lower midscale to luxury. And would exactly fit into my stay strategy (with HH as the better loyality program than IHG Club Rewards) - Hilton and IHG together offer me most time sufficient coverage for business and holiday stays in Europe. I only miss some luxury opportunities with Hilton at my typical destinations (Central Paris - at least Versailles is near and superb -, Cote dīÁzur, and stay there at IHG properties, whereas Hilton Venice is perfect e.g., in Rome a stay combination of Cavalieri - peripheric - and IC de la Ville - central -).

A merger with Accor was a wish of their CEO Mr. Bazin I read some time ago, but I am not sure if the French and American strategies fit together. It would solve any coverage deficits in Europe, especially France, and bring economy scale hotels to the portfolio. But I donīt like many of the IBIS hotels, their quality and their brand reputation in general.

Hyatt has a poor coverage in Europe. The German Hyatt hotels are excellent. Park Hyatt Paris Vendome is outstanding and a class of its own.

My proposal for a strategic answer to the Marriott+Starwood merger would be:

1) Hilton to acquire FRHI and continue organic growth in the midscale and organic or anorganic in he economy scale segment

OR

2) Hilton to acquire IHG

Hilton should not underestimate the Marriott+Starwood merger effect at least to Continental European travellers. The massive joint presence and excellent coverage with many hotels and resorts (with no doubt of reasonable to high quality), for business and holidays, from midscale to luxury, could attract new customers. Without availability of IHG as second option in addition to my favorite choice Hilton I would (have to) chose Marriott/Starwood.