Hotels 101

What, if any, relationship exists between the large hotel chain Hilton Worldwide, privatized by BX, and an actual Hilton hotel such as the Las Vegas Hilton, owned by GS and Colony? Are flag fees paid by LV Hilton to Hilton Worldwide, and if so, is that the only connection?

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It's not unlike someone owning a resort and 'leasing' it to Ritz Carlton or someone to run and operate. Ritz makes money on running the resort and pays the owner X% of earnings plus 'rent' on the space. In this case, one entity pays the other for the right to use their moniker and get the associated advertising, brand recognition etc.

If I had asked people what they wanted, they would have said faster horses - Henry Ford
 
porter9900^ Not really. The Ritz doesnt lease any properties. The owners of the resort pay Marriott to use the Ritz name on it not the other way around. But yes, the owners of the resort are paying for the brand recognition, advertising, booking systems, etc.

Huh? That's really odd. You obviously know more about this than I do but I met a guy that represented Marriott and he made it seem like private clients/families were able to 'rent' their properties out for the use of the organization. Thanks for clearing that up.

If I had asked people what they wanted, they would have said faster horses - Henry Ford
 
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