DOCSLIB.ORG

In Re: Marriott International, Inc., Customer Data Security Breach

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
In Re: Marriott International, Inc., Customer Data Security Breach Case 8:19-cv-00368-PWG Document 80 Filed 07/24/20 Page 1 of 327 UNITED STATES DISTRICT COURT DISTRICT OF MARYLAND SOUTHERN DIVISION IN RE: MARRIOTT INTERNATIONAL, INC., CUSTOMER DATA SECURITY MDL No. 8:19-md-2879-PWG BREACH LITIGATION Judge Paul W. Grimm This Document Relates To: This document relates to Case No. 8:19-cv-00368-PWG DENNIS MCGRATH, Individually and on behalf of all others similarly situated, Plaintiff, JURY TRIAL DEMANDED vs. MARRIOTT INTERNATIONAL, INC., ARNE M. SORENSON, KATHLEEN KELLY OBERG, BAO GIANG VAL BAUDUIN, BRUCE HOFFMEISTER, MARY K. BUSH, FREDERICK A. HENDERSON, LAWRENCE W. KELLNER, AYLWIN B. LEWIS, and GEORGE MUÑOZ, Defendants. THIRD AMENDED CONSOLIDATED CLASS ACTION COMPLAINT FOR VIOLATIONS OF FEDERAL SECURITIES LAWS Case 8:19-cv-00368-PWG Document 80 Filed 07/24/20 Page 2 of 327 TABLE OF CONTENTS Page I. NATURE OF THE CLAIM ................................................................................................ 2 A. Marriott Seeks to Merge with Starwood, Attracted by Its Clientele and Data ......................................................................................................................... 3 B. Marriott Was Obligated to Protect Starwood’s Data and to Perform Due Diligence on Starwood’s Systems .......................................................................... 5 C. Marriott Assured the Market that It Conducted Extensive Due Diligence and That Starwood’s Customer Data Was Secure .................................................. 6 D. Starwood’s Systems Were Outdated and Unprotected ........................................... 8 E. Defendants Either Knew That Starwood’s Systems Were Extremely Vulnerable to an Attack, or Were Severely Reckless in Disregarding the Risk ....................................................................................................................... 11 F. The Data Breach ................................................................................................... 17 G. Events Following the Data Breach and Documentary Evidence Confirm Defendants Made False and Misleading Statements About Marriott’s Due Diligence ............................................................................................................... 20 II. JURISDICTION AND VENUE ....................................................................................... 23 III. PARTIES .......................................................................................................................... 24 A. Lead Plaintiff ........................................................................................................ 24 B. Defendants ............................................................................................................ 25 1. The Individual Defendants ........................................................................ 25 2. The Audit Committee Defendants ............................................................ 27 IV. CONFIDENTIAL WITNESSES ...................................................................................... 31 V. CONTROL PERSON ALLEGATIONS........................................................................... 33 VI. SUBSTANTIVE ALLEGATIONS .................................................................................. 36 A. Nature of Marriott’s Business ............................................................................... 36 1. The Importance of Customer Data to Marriott ......................................... 36 2. The Data That Marriott Collects ............................................................... 40 i Case 8:19-cv-00368-PWG Document 80 Filed 07/24/20 Page 3 of 327 3. Marriott Understood the Importance of Keeping this Valuable Data Secure ........................................................................................................ 44 4. Rules and Regulations that Required Marriott to Keep Data Secure ........ 46 B. Marriott Seeks to Maximize Value by Merging with Hotel Giant Starwood ....... 49 1. Marriott’s M&A Activity Prior to Acquiring Starwood ........................... 49 C. The Massive Starwood Acquisition ...................................................................... 51 1. Analyst and Market Reaction to the Deal Underscores the Importance of the Acquisition of Starwood Customer Data to Marriott’s Business ................................................................................... 54 2. Marriott Conducts Inadequate Due Diligence at the Time of the Merger and Fails to Detect Numerous Vulnerabilities In Starwood’s System—Including a Massive Data Breach .......................... 59 a. Marriott’s Assurances to the Market ................................................. 60 3. Unbeknownst to the Market, Starwood Was Suffering from Massive Security Vulnerabilities That Left Customer Data Unsecured, and This Data Continued to be Unsecure After Marriott Acquired Starwood ................................................................................... 63 a. Oracle Deficiencies Lead to Security Vulnerabilities ....................... 64 b. Starwood’s Security Deficiencies Expose Valuable Data ................. 66 4. Defendants Either Knew That Starwood’s Systems Were Vulnerable to an Attack or Were Severely Reckless in Disregarding the Risk ............................................................................... 73 a. Confidential Witnesses Confirm Defendants Were Made Aware of the Severe Security Deficiencies in Starwood’s Systems ............................................................................................ 73 b. After the Deal Closed, Marriott Misled the Market About the Effectiveness of the Integration Process and Failed to Safeguard its Valuable Customer Data ............................................ 79 (i) The Integration Process........................................................... 79 (ii) Marriott Encountered Problems of Its Own Making While Integrating Starwood’s Troubled Networks ................. 80 (iii) The Integration Was Too Big to Handle and Too Expensive to Successfully Implement .................................... 86 ii Case 8:19-cv-00368-PWG Document 80 Filed 07/24/20 Page 4 of 327 5. Marriott Was Put on Explicit Written Notice of Security Vulnerabilities in Starwood’s Systems After It Commissioned Several Assessments of Starwood’s Cybersecurity Risks ........................ 91 6. Marriott Ignored Obvious Red Flags Alerting Them to Cybersecurity Risks and Data Breaches ................................................... 94 a. Successful Cyberattacks of Starwood’s Systems Put Defendants on Notice of Data Security Risks .................................. 94 b. Marriott Ignored Numerous High-Profile Data Breaches in the Hotel Industry .................................................................................. 96 c. The Equifax Data Breach Was Another Red Flag for Defendants ..................................................................................... 102 D. The Data Breach ................................................................................................. 104 1. Marriott’s Discovery of the Data Breach and the Initial Revelation to the Public ............................................................................................ 104 2. Marriott’s Response to the Data Breach ................................................. 112 E. Post-Class Period ................................................................................................ 114 F. Litigation and Regulatory Action Against Marriott ............................................ 118 1. The Multi-District Litigation in the District of Maryland ...................... 118 2. The Court Has Already Determined That Marriott Made Material Omissions About Its Due Diligence and Data Security and Knew the Company’s Due Diligence and Data Security Was Inadequate ........ 119 3. Evidence Produced to Plaintiffs in Parallel Derivative Litigation .......... 127 4. Regulatory Proceedings .......................................................................... 134 5. Experts’ Reaction to the Data Breach ..................................................... 135 G. The PFI Report Provides Conclusive Evidence That Marriott Misled the Market About Its Due Diligence and Security Risks Associated With Starwood’s Systems ............................................................................................ 137 1. PCI DSS .................................................................................................. 137 2. Marriott Commissions a PFI Report ....................................................... 138 3. Threat Actor’s Activity in Starwood’s Systems ..................................... 140 iii Case 8:19-cv-00368-PWG Document 80 Filed 07/24/20 Page 5 of 327 4. Verizon’s Conclusions and General Timeline of the Data Breach ......... 140 5. Malware Installation and Execution ....................................................... 149 6. Suspicious Queries .................................................................................. 151 7. Other Affected Servers ........................................................................... 152 a. Staging & Exfiltration of Database Tables ...................................... 153 8. RAM-Scraper Malware in the Starwood CDE ....................................... 155 9. PCI DSS Violations ................................................................................ 157 10. Causes of Data Breach Identified in the PFI Report ..............................
Load more

Recommended publications
  • The World's Biggest Hotel Companies. Old Trends and New Tendencies
    MISCELLANEA GEOGRAPHICA – REGIONAL STUDIES ON DEVELOPMENT Vol. 19 • No. 4 • 2015 • pp. 26-33 • ISSN: 2084-6118 • DOI: 10.1515/mgrsd-2015-0020 The world’s biggest hotel companies. Old trends and new tendencies Abstract Many hotels are owned by a few dozen so-called hotel chains or hotel Andrzej Kowalczyk systems. The rapid growth of big hotel companies can be regarded as proof of the entrance of hotel systems into the globalisation phase. Since 2006, companies from the People’s Republic of China (PRC) have been among the world’s top hotel systems. This year can be considered Department of Geography of Tourism & Recreation as the symbolic beginning of a new stage in the history of the largest Institute of Socio-Economic Geography & Spatial Management hotel systems. This paper shows two main trends. On the one hand, the Faculty of Geography & Regional Studies processes that could be observed in the market of the major global hotel University of Warsaw Poland systems from the 1990s are still discernible (for example, the position of e-mail: [email protected] the so-called hotel megasystems). On the other hand, new trends have come to the fore in recent years, notably the emergence of systems from the People’s Republic of China among the world’s largest hotel systems. Keywords Hospitality • hotel megasystems • Chinese hotel chains Received: 30 September 2014 © University of Warsaw – Faculty of Geography and Regional Studies Accepted: 18 August 2015 Introduction A large proportion of hotels worldwide are owned by a few systems, non-cash settlements, launching new services for clients dozen so-called chains or systems, many of which operate and new technological solutions in catering, and so on.
    [Show full text]
  • Strictly Hospitality Seminar
    ADVANCE REGISTRATION DEADLINE: SEPTEMBER 2 , 2 0 1 1 STRICTLY HOSPITALITY SEMINAR SEPTEMBER 22–23, 2011 IN-HOUSE SPEAKERS FIRESKY RESORT INCLUDING SCOTTSDALE, ARIZONA DORINA HERTNER ACCOR NORTH AMERICA STUART M. KREINDLER CHOICE HOTELS INTERNATIONAL INC. LESTER E. WASHINGTON, JR. MARRIOTT INTERNATIONAL TONY FASO ROYAL CARIBBEAN CRUISES LTD. KORIN A. NEFF REASONS TO ATTEND WYNDHAM WORLDWIDE CORPORATION Learn about the latest legal issues facing the hospitality industry from bedbugs and foodborne illnesses to employee immigration issues, security matters and post-accident investigations Network with hospitality lawyers across the industry whose clients include restaurants, hotels and cruise lines Earn up to 12 hours of CLE, including 1 hour of ethics credit DRI’s Strictly Hospitality Seminar is Program Schedule 3 specifically tailored to educate those within the hospitality industry on strategies for General Information 6 handling the top issues affecting the industry today. The seminar is packed with practical presentations and the relevant law that governs Seminar Sponsors 7 the hospitality industry from start to finish. This one-stop seminar is a must for the hospitality provider and outside hospitality lawyer. 2011–2012 Seminar Schedule 7 Faculty Biographies 8 Membership Application 11 Cynthia P. Arends Paul Caleo Registration Form 12 Program Chair Committee Chair William F. Ray WHAT YOU WILL LEARN Law Institute n What you need to do as a hospitality provider to protect your guests and Presented by DRI’s employees during an infectious disease Retail and Hospitality Committee outbreak or a criminal or terrorist threat n What you need to do to comply with the Medicare Secondary Payor Act n How to comply with immigration requirements and handle an enforcement action n How to conduct investigations into data breaches or on-site accidents n How to anticipate changes brought about by the new Restatement provisions September 22–23, 2011 3 PROGRAM SCHEDULE what you need to know when employees or customers become sick.
    [Show full text]
  • China Hotel Market (5Th Consecutive Survey on the Influence of the Coronavirus Outbreak) 2021 Q2
    Singapore: Hotel Market Market Report - March 2019 SENTIMENT SURVEY China Hotel Market (5th Consecutive Survey on the Influence of the Coronavirus Outbreak) 2021 Q2 APRIL 2021 China Hotel Market Sentiment Survey – April 2021 With Large-scale Vaccination, the Market is Expected to Pick up Significantly 2021 Q2 Sentiment Score -14 31 32 27 Under the influence 18 23 9 3 of Covid-19 -9 -9 outbreak -14 -32 -40 1 -47 -12 -88 -116 14 First 14 15 First 15 16 First 16 17 First 17 18 First 18 19 First 19 Feb Jun Sep Jan Mar Half Second Half Second Half Second Half Second Half Second Half Second 2020 2020 2020 2021 2021 Half Half Half Half Half Half Question: Compared with the second quarter 2021 Q1 Hotel Market Performance Outlook of 2019, what’s your prediction on the overall 100% hotel market performance of the second quarter of 2021? 80% Occupancy With the normalization of domestic epidemic prevention and the large- 60% scale vaccination, the market confidence has been greatly improved. The sentiment score of Q2 2021 reached a peak since the Covid-19 outbreak, 40% even exceeding the score in the second half of 2019. 34% of the respondents predict that the overall occupancy rate of Q2 2021 will 20% recover to the same level of Q2 2019. 29% of the respondents even believe that the occupancy rate will be higher. Benefiting from the return 0% of high-value tourists, the sentiment score of Hainan increased 24 points OCC ADR Total Rev compared with that of last survey to 29, showing positive market Mu ch Worse Wo rse expectations.
    [Show full text]
  • Hotels Moving Into Old Buildings by AMY ZIPKINMARCH 10, 2014
    BUSINESS DAY Hotels Moving Into Old Buildings By AMY ZIPKINMARCH 10, 2014 The vault from the Cotton Exchange is used as office space at the Cotton Exchange Hotel in New Orleans. Credit William Widmer for The New York Times Reuse and recycle are taking on new meaning for hotels. The Lamb’s Theater, a longtime fixture on West 44th Street inside the Manhattan Church of the Nazarene, is now the luxury Chatwal Hotel. In Philadelphia, the previously empty Lafayette Building near Independence Hall opened in 2012 as the Hotel Monaco. In New Orleans, new life is being breathed into the Cotton Exchange Hotel off Bourbon Street. As the hotel industry shakes off recession doldrums and new hotels are being built, the once-standard chain hotel has a sibling, hotels repurposed from existing buildings like offices, warehouses and hospitals. Behind the push is the changing tastes of younger travelers, who flock to cities and are bringing an urban sensibility to their accommodations. “Travelers don’t want consistency and reliability to come at the expense of authenticity,” said Henry Harteveldt, a travel analyst for the research firm Hudson Crossing. The adaptive-use hotel is a presence in smaller cities like Amarillo, Tex.; Pittsburgh; and Stamford, Conn.; as well as big cities like New York, Washington, Boston and New Orleans. “Brands have realized standardization doesn’t mean as much to guests as it did in the past,” said Bjorn Hanson, divisional dean of the Preston Robert Tisch Center for Hospitality, Tourism and Sports Management at New York University. Executives at Marriott estimate that 10 percent to 20 percent of their Courtyards opening this year will have had other uses.
    [Show full text]
  • Speaker Biographies Conference Producer and Co-Founder
    SPEAKER BIOGRAPHIES CONFERENCE PRODUCER AND CO-FOUNDER HARRY JAVER President - The Conference Bureau, Inc. Harry Javer is the founder and president of The Conference Bureau. In 1994, Harry created and co-founded The Lodging Conference, which is now in its 21st year. Harry is the current chairman of the AH&LEF Fund Development Committee, which is responsible for overseeing the Annual Giving Campaign. The Lodging Conference has sponsored AH&LEF scholarship recipients to attend the conference for the last 13 years. With 34 years of experience creating and running conferences, seminars, concerts and tradeshows, Harry has produced events featuring such notables as: Al Gore, Rudy Giuliani, Sir Richard Branson, Bishop Desmond Tutu, Donald Trump, Pete Peterson, Bono, Charlton Heston, Anthony Robbins, Magic Johnson, Deepak Chopra, Jerry Lewis, Joe Torre, George Foreman, Kareem Abdul-Jabbar, Joe Montana, and thousands of America’s corporate leaders. Harry is an advisor to some of the nation’s leading live event companies including One Day University, and The Learning Annex. The Conference Bureau has also co-produced the Rock N’ Roll Fantasy Camp. A graduate of Stony Brook University, Harry resides in New York City with his wife Elizabeth and son Jack. SPEAKER BIOGRAPHIES MATTHEW D. AHO Consultant - Akerman LLP Matthew Aho helps clients identify and pursue opportunities at the nexus of Cuba policy and business. During his years at the Council of the Americas, the Western Hemisphere’s premiere business membership organization, Matthew led efforts to unite senior executives of select-Fortune 500 companies with officials from the U.S. departments of State, Commerce, Treasury, and the National Security Council to discuss topics including financial services, telecommunications, energy, pharmaceuticals, hospitality, and agriculture.
    [Show full text]
  • Hilton Worldwide Holdings Inc
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36243 Hilton Worldwide Holdings Inc. (Exact name of registrant as specified in its charter) Delaware 27-4384691 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 7930 Jones Branch Drive, Suite 1100, McLean, VA 22102 (Address of Principal Executive Offices) (Zip Code) Registrant’s telephone number, including area code: (703) 883-1000 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value per share HLT New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
    [Show full text]
  • Global Hospitality Monitor
    Global Hospitality Monitor July 26, 2021 LTM Share Price Performance Weekly Movers North American Hotel REITs Top 5 Performers One Week % Change NH Hotel Group SA 5.8% 200 Avingstone North America Hotel REIT Index Hilton Worldwide Holdings Inc. 4.6% S&P REIT Index 180 Whitbread Plc 3.7% Marriott International Inc. 3.1% 160 Playa Hotels & Resorts NV 2.7% 140 Top 5 Laggards One Week % Change 120 Central Plaza Hotel Public Co Ltd (9.9%) 100 Banyan Tree Holdings Ltd (9.0%) Ashford Hospitality Trust Inc. (6.7%) 80 Hong Kong & Shanghai Hotels/The (5.6%) Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Huazhu Hotels Group (5.2%) North American Hotel Stocks Ind ustry Intelligence & Commentary 200 Avingstone North America Hotel Index 23 Jul: Star Entertainment, the Australia-listed hotel and casino group, S&P 500 Index 180 announced that it withdrew a A$9 billion (US$6.6 billion) buyout proposal for Crown Resorts, the Australia-listed hotel and casino group, over concerns that 160 Crown could lose its license to run its Melbourne casino property. Star said it might consider a tie-up with Crown but was concerned about the impact on its 140 value “including whether it retains the license to operate its Melbourne casino 120 or the conditions under which its license is retained”. 100 22 Jul: Pebblebrook Hotel Trust, the US-listed hospitality real estate investment trust, announced the acquisition of the 200-key Jekyll Island Club 80 Resort in Georgia for US$94 million (approx.
    [Show full text]
  • HVS Asia-Pacific Hotel Operator Guide Excerpt 2017
    2017 EDITION | Price US$800 EXCERPT THE ANNUAL HVS ASIA-PACIFIC HOTEL OPERATOR GUIDE (AS OF 31 DECEMBER 2016) Pawinee Chaisiriroj Senior Analyst Daniel J Voellm Managing Partner HVS.com HVS | Level 21, The Centre, 99 Queen’s Road Central, Hong Kong The HVS Asia-Pacific Hotel Operator Guide 2017 Foreword It is with great pleasure that I share with you our fourth annual Asia-Pacific Operator Guide, data as of 31 December 2016. This fourth edition will continue to serve owners as a reference for which operator has a strong presence in their home market and in potential future markets further ashore as well as key feeder markets across the region. As more brands are created and/or introduced to the region, owners need to navigate a more complex environment. At the same time, M&A activities have created larger companies with a very large portfolio of brands. At the same time, we see operators building pipelines with limited-service brands that are easier to scale. Which operator to choose? Branding, anchored by the management expertise and distribution power that operators bring to a hotel property, is becoming more and more critical. In the face of increasing competition, non-branded properties often perform at a discount to their branded peers due to lack of awareness and quality assurance. Running a hotel is no easy task and owners have a tendency to view operators’ fees as unjustified for the value they deliver. It is essential that owner and operator align their interest from very early in the process and work towards a common goal, rather than start their long-term relationship from conflicting standpoints.
    [Show full text]
  • Online, Mobile, and Text Food Ordering in the U.S. Restaurant Industry
    Online, Mobile, and Text Food Ordering in the U.S. Restaurant Industry Cornell Hospitality Report Vol. 11, No. 7, March 2011 by Sheryl E. Kimes, Ph.D., and Philipp F. Laqué www.chr.cornell.edu Advisory Board Niklas Andréen, Group Vice President Global Hospitality & Partner Marketing, Travelport GDS Ra’anan Ben-Zur, Chief Executive Officer, French Quarter Holdings, Inc. Scott Berman, Principal, Industry Leader, Hospitality & Leisure Practice, PricewaterhouseCoopers Raymond Bickson, Managing Director and Chief Executive Officer, Taj Group of Hotels, Resorts, and Palaces Stephen C. Brandman, Co-Owner, Thompson Hotels, Inc. Raj Chandnani, Vice President, Director of Strategy, WATG Benjamin J. “Patrick” Denihan, Chief Executive Officer, Denihan Hospitality Group Brian Ferguson, Vice President, Supply Strategy and Analysis, Expedia North America Chuck Floyd, Chief Operating Officer–North America, Hyatt The Robert A. and Jan M. Beck Center at Cornell University Gregg Gilman, Partner, Co-Chair, Employment Practices, Back cover photo by permission of The Cornellian and Jeff Wang. Davis & Gilbert LLP Susan Helstab, EVP Corporate Marketing, Four Seasons Hotels and Resorts Jeffrey A. Horwitz, Chair, Lodging + Gaming, and Co-Head, Mergers + Acquisitions, Proskauer Kevin J. Jacobs, Senior Vice President, Corporate Strategy & Treasurer, Hilton Worldwide Kenneth Kahn, President/Owner, LRP Publications Cornell Hospitality Reports, Kirk Kinsell, President of Europe, Middle East, and Africa, InterContinental Hotels Group Vol. 11, No. 7 (March 2011) Radhika Kulkarni, Ph.D., VP of Advanced Analytics R&D, SAS Institute © 2011 Cornell University Gerald Lawless, Executive Chairman, Jumeirah Group Mark V. Lomanno, President, Smith Travel Research Cornell Hospitality Report is produced for Betsy MacDonald, Managing Director, HVS Global Hospitality the benefit of the hospitality industry by Services The Center for Hospitality Research at David Meltzer, Vice President of Global Business Development, Cornell University Sabre Hospitality Solutions William F.
    [Show full text]
  • Press Materials
    DRIFTWOOD HOSPITALITY MANAGEMENT is a leading hotel management company that operates approximately 70 hotels with more than 13,000 rooms throughout the United States and Costa Rica. The company’s current portfolio includes a broad cross-section of brands and ranges from fullservice hotels and resorts to mid-size select-service, extended stay and independent boutique properties. Since the company’s launch in 1999, Driftwood has successfully grown its portfolio by taking a unique entrepreneurial approach, maintaining long-term relationships with investors, clients, lenders and guests. The company’s primary philosophy is to maximize Net Operating Income and ownership returns for each asset by balancing customer service, integrity, employee relations and careful, indepth reviews of each individual market to create effective operating and capital strategies. Driftwood’s experienced and innovative team consistently achieves objectives and delivers real, bottom-line results. Members of the company’s senior management team have an average of 20 years of experience in all segments of the lodging industry and have proven highly successful in the takeover, re-positioning and optimization of hotel operations. Extensive experience working with major brands like Marriott International, Inc., Starwood Hotels & Resorts Worldwide, Inc., Hilton Worldwide, InterContinental Hotels Group, Hyatt Hotels Corporation, Wyndham Worldwide, Choice Hotels International, Inc. and others, gives Driftwood a firm grasp on the ins and outs of the franchising model. Personal Service and Attention Driftwood Hospitality Management is not just a property owner, but also a property manager. As a third-party management company, Driftwood’s approach is a personalized and respectful one. The individual needs of each property in Driftwood’s management portfolio are taken into careful consideration and are critical in creating an effective partnership.
    [Show full text]
  • Stephen F. Bollenbach
    STEPHEN F. BOLLENBACH Co-Chairman & Chief Executive Officer Hilton Hotels Corporation Stephen F. Bollenbach was named co-chairman of Hilton Hotels Corporation in May 2004, and is also the company’s chief executive officer, a position he has held since joining Hilton in February 1996. Since joining Hilton, Bollenbach has overseen a complete transformation of the company including: the formation of a sales and marketing alliance between Hilton Hotels and Hilton International (owner of the Hilton brand outside the United States), which reunited the brands for the first time in 34 years; the acquisition of Bally Entertainment, which made Hilton the world’s largest gaming company, and the acquisition of some $1.5 billion of hotel real estate in markets with high barriers to entry. He has also spun off Hilton’s gaming operations in a tax-free transaction to shareholders to form Park Place Entertainment (now Caesars Entertainment Corporation), the world’s largest gaming company; and acquired Promus Hotel Corporation. The Promus acquisition added 1,400 hotels and several well-known hospitality brands including Doubletree, Embassy Suites Hotels, Hampton and Homewood Suites by Hilton to Hilton’s portfolio of outstanding properties. Under his leadership, Hilton has grown and firmly enhanced its leadership position in the lodging industry with more than 2,100 hotels and 330,000 rooms. Prior to joining Hilton Hotels Corporation, Bollenbach was senior executive vice president and chief financial officer for The Walt Disney Company, where he was instrumental in the execution of that company’s $19 billion acquisition of Capital Cities/ABC, at the time, the second-largest acquisition in U.S.
    [Show full text]
  • Orbis Entered Into Sale and Management Back Transaction of Sofitel Budapest with Starwood Capital
    Press release Budapest, 24th of November 2017 Orbis entered into sale and management back transaction of Sofitel Budapest with Starwood Capital Orbis Hotel Group, the leading hotel operator in Eastern Europe has signed a sale agreement of Sofitel Budapest Chain Bridge with Starwood Capital Group and settled down terms for the management. As part of the transaction, to be completed in the coming months subject to the approval of the European Union Merger Control Office, Starwood Capital Group through a controlled affiliate will acquire the iconic luxury hotel of Budapest, to be continued to operate under the “Sofitel” brand by Orbis in the frame of a long term management agreement to conclude for an initial period of 30 years. In scope of the above mentioned agreement, Sofitel Budapest Chain Bridge will undergo an extensive restoration and renovation plan equipping this landmark hotel with modern luxury premises of the chic Sofitel brand. The purchase price for the Hotel has been agreed at the amount of c.a. EUR 75.000.000. “We are very pleased to enter into this transaction with Starwood Capital, a leading global private investment firm. This project opens a partnership for potential cooperation in the future. In line with Orbis Hotel Groups’ portfolio strategy the aim of the sale and management back transaction of Sofitel Budapest Chain Bridge is gaining financing for further development in the region and increasing of the return on capital invested, reinforcing our sustainable growth.” – highlighted Gilles Clavie, President and CEO of Orbis Hotel Group. “We are delighted to be acquiring this iconic European hotel in this high demand hospitality market, while partnering with AccorHotels and Orbis on this transaction,” said Keith Evans, Vice President, European Hotels at Starwood Capital Group.
    [Show full text]