The Story of Struggle Madrid

The first in Europe - There is archival evidence suggesting that the Hilton Hotels Corporation had been looking for a project in Europe for a while (see Exhibit 2.1). The company was, by the end of the War, strongly represented from coast to coast in the United States and could have easily been considered a leader in luxury hospitality sector there. With the opening of the Caribe Hilton, the International division of the company was initiated, and Hilton was prepared to venture out further. Strand (1996) recalls that the main Hilton International’s development goal was to operate in Europe, as this was where they saw the greatest potential in terms of both business and leisure travel. Also, it appears that it was in American foreign policy’s interest to strategically distribute American businesses’ foreign direct investment on the Old Continent. Allegedly, the Economic Cooperation Administration, a US government agency set up to administer the Marshall Plan, contacted Hilton Hotels in the early 1950s to announce that the ECA was “very anxious to increase first class accommodations in several of the capitals of Europe” and, to fulfil this potential, was willing to provide both loan guarantees and capital to encourage construction. Having such an encouragement, Hilton could look for an appropriate project opportunity. What was certain, was that the hotel would need to be located in one of the capital cities and would be constructed using mainly local funding.

The Story of Defeat Havana

Pleasure Island - Cuba is an intriguing island which, since the day it was discovered by Christopher Columbus, has been fighting for independence and freedom and has never quite succeeded in achieving this aim to this day. Almost all of the native Cubans whom Columbus would have encountered in 1492 were either killed by Spanish colonialists or passed away infected with European diseases such as measles and smallpox, to which their bodies were not immune. People who today call themselves Cuban are, in most cases, decedents of Hispanic colonialists or of African slaves brought across the Atlantic on Spanish galleons to cultivate sugar cane farms. A series of rebellions throughout the 19th century failed to end the Spanish rule. However, in 1898 the Spanish – American War resulted in Spain withdrawing from the island and, following three-and-a-half years of subsequent US military rule, Cuba gained formal independence in 1902. The US helped to revive the ravaged island’s infrastructure and economy, though not without considerable self-interest (Perur, 2015). For many decades the Cuban economy depended heavily on sugar cane which was exported first to Spain and later to the US. Together with the socio-cultural changes of the twentieth century, another industry started playing a key role; this was tourism. Thanks to a relaxed approach to alcohol, gambling and other leisure pursuits, Cuba turned into a convenient backyard playground for US tourists, especially during the prohibition of the 1920s, carrying this reputation well into the 1950s.

The Story Goes On

The shooting star - Hilton Hotels have seen it all, oil boom in Texas, prohibition, the Great Depression, World War II, the Cold War, the collapse of the Berlin Wall, the landing on the Moon, the birth of digital age and expansion of social media, and many other events which have contributed not only to the development of business but, actually, influenced people’s lives the world over. It has been the aim of this book to tell the stories of a handful of properties which had to overcome various challenges on the path to the internationalisation of this American company. In all cases these are actually stories of people, those who created the Hilton Hotels, who made it expand, or sometimes, those who made it lose. Stories of struggle, success or defeat are not unique to Hilton, but some of the ways in which Hilton navigated through these challenges are, undeniably, worth remembering. This final chapter focuses on the key solutions employed by Hilton and its people to navigate the stormy waters of international business in the 20th Century. Historical events cannot, however, be studied in isolation from the wider socio-cultural context in which they unravelled, and the internationalisation of Hilton Hotels is no different in this respect. We have looked at the development of some of the most iconic of Hilton’s properties in this company’s early expansion and the destinations which hosted these ‘little Americas’ on their land. Yet, it is crucial to also take into consideration the wider changes which contributed to the internationalisation of other companies in the first half of the 20th Century, hospitality and tourism industry in particular.

The Story of Change London

Symbol of dollar supremacy - Despite the fact that in 1963 Hilton operated already 21 hotels in 16 different countries, the London hotel was to become its flagship property in Europe. Curt Strand strongly believed that a hotel in London would have similar status in the International Division as the Waldorf Astoria in the Domestic Division 1 . A similar comparison was made by William Irvin, the Vice President of Hilton International and a long-time friend of Conrad’s, who in 1958 recognised the Waldorf Astoria, the Plaza and the Palmer House as the most prominent properties of the Hilton Hotels Corporation.

The Story of Dreaming Conrad

The entrepreneur from San Antonio - Conrad Hilton 1 is often associated with Texas, however, he was actually born and raised in San Antonio, New Mexico, an area near the Rio Grande, surrounded by vast high deserts and stark mountains. He was born on Christmas Day, 1887, second of nine children and, being the firstborn son, he was expected to quickly learn business skills from his father in hope that he could take over the family shop business when he grew up. Conrad discusses his childhood and early years of his career in much detail in his autobiography Be My Guest (Hilton, 1957) and states there that it was in his family home he learnt two values which would guide his whole life: work and faith.

The Story of Success Istanbul

Between the East and the West - The Istanbul Hilton bore many colloquial names, the press called it ‘Conrad’s Palace’, Hilton’s employees called it ‘Little America’ and the people of Istanbul called it ‘The Ship’. Irrespective of the name, there is no doubt that the hotel changed the social scene of 1950s’ Istanbul and opened its oriental door to the West. Most visitors to Istanbul these days arrive at one of the city’s international airports, but it is still quite easy to imagine that one gets off the Orient Express and is suddenly transported to the oriental world of bright colours, a myriad of smells, the buzz of the Grand Bazar and the sound of muezzins calling for the evening prayer. When you arrive at the Sirkeci Station, you find yourself just a step away from the Eminönü harbour where local men wait for their daily catch on the Galata bridge. You can stop for a minute to taste grilled fish sandwiches served directly from the fishing boat. Head north, up narrow cobbled streets, leaving the monumental Galata tower on your left, and reach Taksim Square where local socialites meet for coffee and a slice of pistachio baklava. You can also accept a shopkeeper’s invitation for a quick glass of çay – he won’t charge you a penny, it is merely a local way of saying “hello, you are welcome”. One can easily imagine going back in time, men wearing their finest suits and ladies showing off expensive pearls and fashionably tailored hats. You can hear İlham Gencer playing piano in one of many fancy coffee houses. Men are busy competing in a round of Okey while ladies catch up with daily gossip. The time moves slowly here, the air is hot and sticky, people hide from the sun in the shade of Judas trees. Leaving the Republic Monument behind you, head into Cumhuriyet Street. Passing lush Gezi Park and the offices of many international airlines and shipping companies shaded by the alley of trees, and look to your right. There it is, the majestic Hilton Hotel, symbol of modernity, comfort and globalization. This is Conrad’s Palace in Istanbul.