Hiltons Nail Down Their Alliance

<I>London</I> - Hilton Hotels Corp. and Hilton International will initiate the first step of their alliance, the joint HHonors loyalty program, on Feb. 1.

The Hilton sales forces will merge in time for the upcoming negotiating season, enabling travel managers to pool both U.S. and international volume, said Hilton International chief executive David Jarvis.

An integrated central reservations system for the alliance, uniting about 400 hotels in 49 countries, will switch on next year.

"We're creating a global pool of Hilton customers," said Stephen Bollenbach, Hilton Hotels Corp. president and chief executive officer. While Bollenbach and Hilton International chairman Peter George had hinted of a possible merger in past press conferences, they have backed away from such plans. The two also decided against investing in each other's real estate, as originally planned. Each hotel group will garner 20 percent of the other's management and franchise profits.

The 11 Conrad hotels will each have the option to swap the name for Hilton.