Hilton Hotel in Las Vegas

Did Hilton spy on Starwood?

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In the United States a case is being examined, among the main subjects of which are two “whales” of the world hospitality industry: corporations Hilton and Starwood. As the result of an investigation a number of Hilton top managers can appear on the dock on the charge of industrial espionage against Starwood.

According to The Wall Street Journal, referring to an unnamed competent source, federal prosecution considers filing accusation to Hilton Corporation for gaining an illegal access to trade secrets of the competing company. Among the possible suspects a number of senior officers of Hilton were named, including the President of Hilton for Global Development and Real Estate - Steven Goldman. Former executives of Starwood - Ross Klein and Amar Lalvani, who were accused by the corporation for stealing important documentation for the development of W Hotels brand - will also most likely be among the persons involved in the case. Papers regarded to the case of espionage are still under consideration.

Currently grand jury examines evidence and determines whether there is a full-fledged cause to bring a formal accusation. The Hilton Company refused to comment information from grand jury, saying only that the corporation cooperates with the investigation.

Starwood accused the Hilton Company for use of the documents, illegally transferred to them by the former executives Klein, and Lalvani. The Hilton Company had intended to use technologies of Starwood to create its own brand of stylish hotels - Denizen Hotels.

Despite the fact that initially the reports from Starwood about espionage were ignored, in April 2009 Hilton dismissed Klein and Lalvani. And just last month Hilton has invited John Vanderslice in order to take Klein’s place, who now began to supervise the development of luxury hotel brands of the corporation.

Today, Hilton and Starwood are among the world's largest hotel corporations. A total number of hotels under the management or ownership of Hilton exceeds 3200. It takes the 6th place in the world. Starwood Corporation is the ninth largest hotel company in the world. 942 hotels operate under its management today.

W Hotels - is one of the brands of the Starwood hotel chain. W Hotels offer their services in the segment of luxury and stylish hotel real estate. The brand was launched in 1998. Hotels under the name of W Hotels can be found in New York, Seoul, Barcelona, Sydney, Mexico City and the Maldives.

Date: 08/10/2009