Promus Hotel Corporation

Promus Hotel Corporation

Company type	Public
Industry	Hospitality
Predecessor	Holiday Corp.
Founded	1994
Defunct	1999
Fate	Acquired by Hilton Hotels Corporation
Headquarters	Memphis, Tennessee , United States
Key people	Raymond E. Schultz (President and CEO)
Products	Hotel ownership, management, franchising

Promus Hotel Corporation was a company engaged in hotel ownership, management, and franchising, headquartered in Memphis, Tennessee. Initially a division of Holiday Corp., it was separated in December 1989 to form Promus Companies. Following the divestiture of its gaming assets into Harrah's Entertainment in 1995, the firm became known as Promus Hotel Corporation. In 1998, it was purchased by Hilton Hotels Corporation.

History

Promus Hotel Corporation traces its roots to Holiday Corp., the proprietor of the Holiday Inn brand. After undergoing financial restructuring in 1987 that resulted in substantial debt and increased competition, Holiday Corp. divested Holiday Inn and Crowne Plaza in August 1989, selling them to British brewer Bass PLC for $2.23 billion. This transaction left Holiday Corp. with more lucrative hotel and gaming brands including Harrah's Entertainment, Embassy Suites Hotels, Homewood Suites, and Hampton Inn. Subsequently, in December 1989, Holiday Corp. spun off its hotel-related assets into a new entity called Promus Companies.

In 1995, the company separated its casino operations from its hotel brands, establishing the independent Promus Hotel Corporation; the remaining business was renamed Harrah's Entertainment.

Promus merged with Doubletree Corporation in September 1997 while maintaining the Promus name. Two years later, Hilton Hotels Corporation acquired Promus for $3.1 billion, substantially broadening its hotel portfolio.

Raymond E. Schultz, who created the Hampton Inn brand, led Promus as President and CEO from its inception until it was acquired by Hilton.