Coral by Hilton's Numbers Are Up

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. October 14, 2008

BEVERLY HILLS, CA, April 17, 2006. Hilton International signed a franchise agreement with Coral Hotels & Resorts, resulting in the Coral by Hilton all-inclusive brand.

Four Coral-managed properties on the tourism-driven Caribbean island of the Dominican Republic were flagged at the end of March 2003. . Sales through Hilton channels, however, had begun as early as February, and by the end of 2003, that alone accounted for 1.2 percent of Coral by Hilton's total business.

Since then, the numbers have continued to grow. By the end of 2004, sales had nearly tripled to 3.1 percent, and by the end of 2005 had doubled to 6 percent of their business. With 730,000 available room nights in a year, these figures represent a very significant number. Indeed, the increase amounts to a 187 percent rise in the 2003-2004 period, and a 78 percent increase in sales from 2004-2005.

The branding alliance also resulted in a rise in U.S. business in general. In the first year, Coral by Hilton recorded a 46 percent increase in U.S. tour and travel (i.e., tour operator packaged and travel agent direct) sales. It's a positive trend that has continued to exhibit itself, as the company posted a 38 percent increase in 2005.

"For that same time period, tourism to the Dominican Republic was up 8.27 percent in the U.S. market," said Michele Olivier, Vice President of Sales & Marketing for Coral by Hilton. "In truth, our alliance with Hilton has not only benefited us, but has brought additional business to the destination overall. More than 2,500 Hilton HHonors guests visited our properties in 2005 as a direct result of the Hilton loyalty program marketing efforts. Hilton HHonors is four million strong in membership, so we are confident that we will see a further increase in 2006."

Thanks to such excellent numbers, each hotel has begun implementing a three-year capital plan totaling some $10 million. Aesthetic improvements and renovations will be executed in nearly every area of the properties, resulting in upgrades that can be fully enjoyed by Coral by Hilton guests. Guest rooms will receive the most attention, with a complete facelift that includes new mattresses, televisions, and a complete change of soft goods (bedspreads, bed skirts, cushions, curtains, etc.) All bathrooms will be redone as well, and every room will be repainted and meticulously checked for any repairs that will immediately be taken care of. This major undertaking will be done in stages, so as not to disturb the enjoyment of in-house guests. Public areas, food and beverage outlets, technology and entertainment will also undergo extensive revamping. The result: four gleaming new resorts, a formidable competition for other all-inclusive properties in the area.