What's The Connection Between A famous UK Bookmaker And An Even More Famous US Hotel Brand?

It could be forgiven to think that the namehotel market, with the launch of their Ladbrokes
'Ladbrokes' is only synonymous with the gamblingchain of hotels. In 1999 the group bought over the
industry. However, if one looks deeper into the'Stakis' chain of hotels, owned by the late Cypriot
company portfolio, they will find that in addition toowner, Sir Reo Stakis who sadly passed away in
being recognised as the world's leading bookmaker,2001. Other ventures that the Ladbroke group were
they also have the likes of Vernon's football poolsinvolved in were the acquisition of DIY chain 'Texas
and Hilton Hotels International among their list ofHomecare' who they later sold to the Sainsburys
companies.group, who then merged the brand with their own
Originally formed as a bookmaking operation in 1886,Homebase brand. Ladbrokes are also responsible for
betting on horses that were trained by one of thethe football pools company 'Vernons', who they still
founding partners of the company, it was soonown today.
realised that taking bets rather than making betsSoon after the acquision of Stakis hotels, the
would be a far more lucrative market to be involvedLadbroke Group renamed and rebranded their entire
in. Gambling was the company's main business whichhotel stock as Hilton Hotels International, making
they began first through the 'gentlemans clubs' ofthem one of the largest hotel operators in the world.
London and later through a telephone office. ThisSubsequently the company renamed themselves as
office marked the first Ladbrokes betting office, asthe Hilton Group Plc, in order to reflect the increased
betting shops as they are today were illegal until 1961.size of the hotel business within the group, and
An aggressive expansion campaign between 1964entered a joint marketing arrangement with the US
and 1967 saw the group buy up properties, extendingbased Hilton Hotels corporation, which operates Hilton
and refurbishing them to open as licensed bettingHotels in the US.
offices. As a result, group profits soared as bettingIn 2005 Hilton Group Plc announced its intention to sell
turnover increased markedly, allowing the companyoff their UK hotels to the Hilton Hotels Corporation in
to float on the stock exchange for almost £1the US and in February 2006, the sale was approved
million. In turn, the Ladbrokes shop estate balloonedby shareholders and subsequently finalised for
from around 400 shops to over 1000 shops up until£3.3 billion ($5.7 billion), with the Hilton Group
1971.readopting their original Ladbrokes name and retaining
Not content with their lot, the company thentheir gambling business.
diversified into several other markets, including the