Welcome to the Hilton New York

November 9, 2009

“Sell the right product to the right customer at the right time for the right price, thereby maximizing revenue…”

Revenue Management

“Revenue Management,”

by Robert G. Cross

Understanding Supply & Demand Determining when “The Price is Right!” Ensure Availability for the Last Customer

What is Revenue Management?Objectives

Who stays in our hotel?

Transient Categories Group Categories Permanent

Distribution

Phone/Fax – Traditional Method– HRCC: Hilton Reservations Call Centers

Global Distribution Systems (GDS) Internet

– Hilton.com– 3rd Party Distribution Channels (Expedia,

Travelocity, Orbitz, Priceline, Hotels, etc.)

FIT/Special Pkgs Hilton Direct

Where do we sell our hotel rooms?

The Competition

Defining your competitors Measuring Performance

– STAR– RevPAR

Fair Share – How big is your piece of pie?

HHC Corporate Goal for Forecast Accuracy Types of Forecasts

– Annual Budget– Rolling– Monthly– Weekly– Daily

Team Effort!

Forecasting

Group & Catering Revenue Management

Goal: To maximize public space revenues Group Catering

– Food & Beverage– Resource– Rental

Free Sell Calendar

REVENUE MANAGMENT

Any Questions ?

Sales and MarketingSales and MarketingOverviewOverview

WHAT DOES THE SALES WHAT DOES THE SALES DEPARTMENT DO?DEPARTMENT DO?

SALES DEPARTMENT SALES DEPARTMENT OVERVIEWOVERVIEW

Convention Sales = > 125 peak Business Travel Sales

International Transient Sales FITConference Center = < 125 peak

International Sales Group Tour

TEAM GOAL = $64,661,241

GOAL = 123,672 room nights

Group SalesGroup Sales Business Transient SalesBusiness Transient Sales

COMPETITIVE SETCOMPETITIVE SET

GROUPGROUP

MARRIOT MARQUIS

SHERATON NEW YORK

GRAND HYATT

BUSINESS TRAVEL

SHERATONNEW YORK

MILLENIUM BROADWAY

MARRIOTMARQUIS

PARKERMERIDIEN

INT’LINT’L

GROUPGROUP

MARRIOTT MARQUIS

SHERATONNEW YORK

GRAND HYATT

DEFINITEDEFINITE

ANNUALANNUAL (sweet!) (sweet!)

GROUP SALES PROCESSGROUP SALES PROCESS

Customer sends RFP to hotel

Hotel reviews RFP and sends availability

Customer asks for 1st option hold on space

Verbal definite & contract issuedTENTATIVTENTATIVEE

PROSPECTPROSPECT

LEADLEAD

INQUIRYINQUIRY

How do we confirm your business?How do we confirm your business?

DMPE DMPE

sales system to protect your spacesales system to protect your space

SSG SSG

suggestive sell guidelines to determine your pricingsuggestive sell guidelines to determine your pricing

Revenue ManagementRevenue Management

to review profitability (rooms, space and food and beverage potential), maximizing to review profitability (rooms, space and food and beverage potential), maximizing business mix to proceed to contractbusiness mix to proceed to contract

Approvals Approvals DOSM, DOS to proceedDOSM, DOS to proceed

… …and we still aim to respond to all leads in FOUR hours! and we still aim to respond to all leads in FOUR hours!

“FROM CONVERSATION TO CONTRACT”

ROADBLOCKS TO CONTRACTS

No flexibility with dates or pattern

Decision process

undefined

Requirement of 24 hr hold

on space Requirement of 24 hr hold on

BALLROOM space (particularly

painful)Reluctance to disclose

3rd party commission

Space or room needs as yet

undetermined

Contractual language

JANUARY JANUARY

FEBRUARY FEBRUARY

MARCHMARCH

JULY JULY

AUGUSTAUGUST

LET’S MAKE A DEALLET’S MAKE A DEAL

Thank You!

Finance Overview

Ron Marron – Director of Finance

Support the Operation Audit and Record Revenues Accounts Payable Payroll Preparation of Financial Statements Internal Controls Maintain Licenses, Service Contracts, Leases Forecasting and Budgeting

Questions?

Role of the Finance Department

Human Resources Overview

Jennifer Tormey – Assistant Director of HR

Human Resources Department

•Recruiting•Training

•Labor Relations•Benefits

•Team Member Recognition and Reward

©2009, Hilton Hotels Corporation

Recruiting

Hiring practices:– Affirmative Action – Equal Opportunity Employer– Union Posting– Dept. of Labor– Job Hotline– Resumes/Applications/Screening/Interviews/Transfers/

Promotions– E-Recruit www.hiltonfamily.jobs– Checks – background, credit, drug– Offer Letter– Transfers in / out– Visa / H1B

©2009, Hilton Hotels Corporation

Training

©2009, Hilton Hotels Corporation

New Hire Orientation (2 days) every 2 weeks– Team Member Handbook / Policies and Procedures– Diversity – Welcomed and Invited– Harassment Free Workplace– Customer Really Matters– Guests with Disabilities / Service Animals– EEO – federal, state and local laws– Safety & Security– Service Standards

Job Skills checklist (after 30 days) Mastering the Art of Service (after 60 days)

Training

Manager Training:– New Manager Orientation – Webinar 1 and 2– Labor Relations – Leadership Workshop– Manager’s University – Four Modules– Diversity– Managing Legally– CPR– Manager on Duty– Behavior Based Interviewing– Continuous Improvement Process

Labor Relations

Union Union Delegates Union Business Agents Grievance process Arbitration Impartial Chairman

Federal, State, Local Laws

Workers Compensation Unemployment EEO Affirmative Action Plan FMLA Military Leave Department of Labor

Recognition and Reward

Newsletter – monthly PRIDE Award Ceremony ($150) per month Big Apple STAR Awards – NYC wide Excellence in Leadership Award – Quarterly PRIDE Winner of the Year Excellence in Leadership of the Year Retirement / promotion celebrations Service Award Recognition Mystery Shopper Report Departmental competitions pertaining to service standards and

SALT scores Sports Teams – soccer, baseball, basketball Scholarships – Union and Hotel Association Night Owl Breakfast and PM Dinner

Sustainability Overview

Jason Tresh – Assistant Director of Food & Beverage

Sustainability

YESTERDAY

TODAY

TOMORROW

Hilton NY Yesterday

UTC PureCell™ fuel cell power system Delphi / BMS interface Decreased Newspaper waste by 25% Energy saving light bulbs 1 ½ gallon flush toilets Restrictors in shower heads

FUEL CELL

We are proud to be one of the only two hotels in the city to use the fuel cell technology to

generate a pollution-free energy on our own.

We generate 200 kilo watts, which is used to heat our domestic water. Using less fossil fuels creates a smaller carbon footprint.

Delphi / BMS Interface

All function space within the Hilton New York is managed by a temperature control system that synchronizes the event time to automatically starts and ends cooling and

heating of the meeting rooms.

Decreased 25% Paper Waste

We have decreased 25% of the paper waste by eliminating daily newspaper delivery and placing newspapers on every floor credenza

as well as on the concierge desk.

LIGHTING

Currently, 90% of bulbs in the Hilton New York are energy efficient.

Incandescent light bulbs use 100 watts, while compact fluorescent light bulbs

only uses 15 watts with a longer lifespan.

With 2000 rooms using 7 light bulbs, we are cutting back 1,737,400 kilo watts per

year.

Hilton NY Today

Water Purification System Opt Out Housekeeping Program Organic waste decomposition system Green Contest

Water Purification

Implemented an on-site water purification system created by Natura® Water. Regular tap water is purified into a high quality, chilled still and sparkling water in re-usable glass bottles.

Housekeeping Opt-Out Process

Saves 14.3 gallons of water for each day a guest opts out of service for linens and towels

Additional water savings from cleaning Electrical Savings Chemical Savings Potential Labor Savings

Decomposition System

As the largest hotel in the New York City, the Hilton New York produces about 8 tons of wet garbage everyday. The organic waste decomposition system uses microorganisms and water to break down the food wastes into a disposable liquid.

Hilton NY Tomorrow

Plant Keys (made for biodegradability & sustainability)

Refillable aluminum sport bottles Banquet Water Program Green Roof

Refillable Water Bottles

Reusable, refillable, recyclable

FUTURE LOOKS GREEN

@ HILTON NY

Safety & Security Overview

Anthony Spagnuolo – Director of Security