Since 1994 Hilton acquired all of Bally Entertainment, making the largest gaming company in the world. In 1997 they founded an alliance with Ladbroke Group PLC in (now Hilton Group, owner of Hilton International and the rights to the Hilton name outside the US) to unify the Hilton brand worldwide. With a downturn in the gaming industry translating into sluggish results in Hilton’s gaming segment, the company spun off its gaming interests as Park Place Entertainment. In 1999 Hilton made a massive acquisition with the $3.7 billion purchase of Promus Hotel Corp. The following year Hilton sold its flamingo Casino-Kansas City, a remaining casino property left over from the Park Place spin off, to Isle of Capri Casinos for $33.5 million.
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HGVC opened a new 264-unit timeshare resort a the Hilton Hawaiian Village Beach Resort & Spa in Honolulu Hawaii, developed through the conversion of an apartment tower to timeshare units. HGVC has also completed 324 units of a 468-unit timeshare resort located adjacent to Sea World in Orlando, Florida. The Company also manages two timeshare resorts and franchise two resorts in the United States under the Embassy Vacation Resort name. The Company has affiliated 28 timeshares resort with the HGBC Club.
There are Numerous risks and uncertainties within the hotel and gaming industry, including the effects of economic conditions; supply and demand changes for hotel rooms; competitive conditions in the lodging industry; relationships with clients and property owner; the impact of government regulations; and the availability of capital to finance growth, which could cause negative results. According to Standards & Poor (S&P), companies within the industry risk losing investment-grade ratings because of the uncertainties. Currently Hilton’s stock rating is relatively low compared to it competitive companies. In addition, S&P stated that “Companies whose ratings are at risk include Hilton Hotels Corp., MGM Mirage, Park Place Entertainment Corp. and Starwood Hotels & Resorts Worldwide.” However, Hilton shows a strong commitment to growth plans with the recent acquisition of Scandic Hotels.