re: Franchise Lost: Hilton removing MN hotel that canceled bookings for ICE & DHS workers

Hilton, Inc responded quickly and decisively


Their corporate team did an outstanding job.

I mean really, is this something the entire country needs to get all worked up about? Who really cares who they chose to allow to book in their hotel.

Good, fafo leftist scum

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I mean really, is this something the entire country needs to get all worked up about? Who really cares who they chose to allow to book in their hotel.

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How stupid are you?
The federal government has contracts on place with Hilton that allow for special rates for federal employees. They get a lot of business this way.
The hotel can’t just decide that they don’t like this one agency and say no.

And don’t act like there wouldn’t be an epic level meltdown if they decided they didn’t want to allow a minority or a gay to stay there.

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On google maps - this is in a suburban area near a lot of small/medium sized mixed use type of businesses and a small airport nearby. It's not the type of small town hotel that would be ideal for an independent flag. It's clearly build to be a lower/mid tier major flag hotel.

I've actually had to go to that area for some of my major agri-business clients back in the day. There are only a couple of other major chain competitors (Hilton or Marriott flags). I stayed in the Marriott near Mall of America or up at the Courtyard by MSP. Just not that many other options on the southern side of that metro for business travelers with corporate rates or loyalty programs that are not near a major office park, downtown Minneapolis, St. Paul, or one of their giant shopping malls.

Having that flag and that back office booking systems is a gold mine for a hotel like that. Not having it is a nightmare. The owner likely will have to sell to someone who is a better partner for those major hotel flags or risk not being able to service what is likely a substantial debt to construct that place.

Corporate rates and agreements with massive corporate and government users is why you pay a fortune for those franchise agreements. Excluding them is a catastrophically stupid thing to do.

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Everything here is spot on. When I travel, unless I stay at an independent hotel, I typically try to stay at Hiltons, including Hamptons. My brother-in-law travels around 125-150 nights a year for work and stays exclusively at Hilton facilities as he gets a corporate rate and then gets Hilton Honors points.

Franchise agreements, especially for mid to upper end chains like Hilton, are incredibly expensive. But it's worth it, because hotels like this aren't built without it.

This property will go bankrupt if they try to go the independent route. Go the independent route and you are relying almost completely on leisure travelers. And this looks to be a location that would rely easily 75% on business travel.

My guess is one of the following happens:

- Hilton forces the franchise company (Everpeak) to sell the property. Maybe close it for 6 months, let everything calm down and then reopen it or reflag it to something like a Hilton Garden Inn if they want to give the property a fresh start.
- The franchise company doesn't sell the property to Hilton, has to close temporarily and then later on finds a new flag. I don't see Marriott, Hyatt or IHG (Holiday Inn) touching this property. If it goes this route, probably a Best Western or Comfort Inn.

And if they had just apologized, it probably would've been a non-issue. But no, they doubled down. Great example of torpedoing your business overnight.

And honestly, if Everpeak has other Hilton properties, I'm going to guess those aren't renewed down the road. They basically destroyed any chance of doing business with Hilton again by doubling down.

FAFO

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historic Holiday Inns with an enclosed pool and restaurant in the middle (which is actually a great setup in that climate).

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I miss the old Holiday Inn “dome” in Houma. Hotel market changed as bigger hotels moved in like the Marriott by the civic center and the Holiday Inn flag moved to a new Hotel with new building. The old building survived a few more years as a different brand. I went to several Chamber, Rotary, and SCIA meetings in that place.

Eventually the Trapp dealership purchased the land and demolished the hotel.


One time I ate lunch at the restaurant by the pool. I looked at my statement and noticed the charge didn’t say Holiday Inn. It came back as the name of the restaurant which didn’t add up in my head. So I googled the name and it was the same name of a gay bar in the French Quarter. I almost thought my card was stolen.

Correct on all points.

Hilton, Inc probably contacted the owner and gave him the opportunity to correct a possible rouge employee and quickly fix the issue. When that didn't happen, they pulled the franchise, and I would bet corporate is pulling the physical signage today, given the optics.


That said, the government employee that tweeted .our the "Hilton conspiracy" tweet is a complete idiot and at the very least, should be reprimanded.

That certainly affected other Hilton hotel owners and was a ridiculous, unfounded statement.

Is it not obvious?

good news