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11/02/2024 09:30:01 am

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Hilton Hotels Invest $500 Million in Mobile Technologies

Lobby of the Waldorf Astoria

Hilton Worldwide Holdings, Inc. is investing US$500 million on the assumption smartphones will increasingly be used by guests to book rooms, check in and unlock doors.

The hotel giant plans to outfit the new technology in its 4,200 global properties worldwide. It intends to overtake rivals that have implemented digital services such as using smartphones as room keys.

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Hilton said patrons can check in and out using their tablet or smartphone in its hotels in the United States. Lodgers can view and choose their own digs in six hotels using smart devices.

These hotels will include the extravagant Waldorf Astoria and the midscale Hilton Garden by the end of the summer.

Hilton said incoming guests can use their devices to unlock their rooms by 2015. Most Hilton's hotels worldwide will have the same feature by the end of 2016.

"We are giving customers unprecedented choice and control at scale, and in the palm of their hands," said Christopher Nassetta, Hilton's chief executive.

The investments were made to compete against rivals already sporting mobile elements. Among these rivals are Marriott International Inc., Starwood Hotels and Resorts Worldwide Inc. and InterContinental Hotels Group.

Internet traffic from guests that view the Marriott's website on mobile devices increased from one percent in 2010 to 40 percent to date.

 "That was the biggest indicator of the need to get moving on mobile," said George Corbin, Marriott's digital senior vice president.

Hilton said the move is essential to attract young people.

While Hilton is shouldering most of the cost for the development, owners of franchised hotels are obligated to give a "modest" donation to bring the mobile technologies to their properties.

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