Hilton Hotels Corp. executives promoted

Friday, Feb. 27, 2004 | 11:26 a.m.

SUN STAFF AND WIRE REPORTS

BEVERLY HILLS, Calif. -- Hilton Hotels Corp., the third- biggest U.S. hotel company, today appointed Chief Executive Stephen Bollenbach co-chairman and named Matt Hart as president and chief operating officer to oversee hotel operations.

Bollenbach, 61, will continue to serve as chief executive and will join Barron Hilton, 76, as a co-chairman. The appointments will take effect after the Beverly Hills, Calif.-based company's annual shareholders' meeting in May. Hart will leave his post as chief financial officer.

Bollenbach has decreased Hilton's dependence on the company's large properties, including New York's Waldorf-Astoria, by agreeing to franchise and manage more hotels. Hart, who previously worked with Bollenbach at Walt Disney Co. and Marriott Corp., will oversee the hotels and timeshare business and will gain hotel management experience in the position, New York-based UBS analyst Keith Mills said.

"Stephen Bollenbach is going to be in more of a strategic position and Matt will be in a more day-to-day operations," said Mills, who rates Hilton "neutral" and doesn't own the shares.

Hilton is a big operator in Las Vegas with time share resorts and traditional hotels under various brands. Bollenbach is also chairman of Las Vegas-based casino resort operator Caesars Entertainment Inc.

Hart joined the company in 1996 after working with Bollenbach at Walt Disney Co. and Marriott Corp. Robert La Forgia, Hilton's controller and senior vice president, will become chief financial officer.

Hilton owns, manages or franchises more than 2,000 Hilton, Doubletree, Hampton Inn and Embassy Suites hotels.

Shares of Hilton rose 5 cents to $16.06 at 10:18 a.m. in New York Stock Exchange composite trading today. They have risen 48 percent in the past year. The company trails Marriott International Inc. and Starwood Hotels & Resorts Worldwide Inc. in annual sales.