Hilton confirms zanzotto to quit

By Andrew Sangster

Ladbroke Group last week confirmed that it was to lose Tommaso Zanzotto, the chairman and chief executive of its hotel division Hilton International, at a "mutually agreeable date in 1996".

Caterer broke the news of Mr Zanzotto's impending departure on 3 August, although Ladbroke had refused to confirm or deny the story.

This week, nobody within Ladbroke would comment on why Mr Zanzotto was leaving. But a company statement that a replacement would not necessarily come from within the hotel industry seemed to refute the suggestion that Mr Zanzotto's lack of hotel experience was a factor.

"What we are looking for is an experienced senior executive capable of running a major diverse business such as Hilton International," added the Ladbroke statement.

Industry commentators were astonished that Ladbroke might again consider an outsider. Most believe the job has to go to someone in the industry and it is widely predicted that the head of a US-based hotel group will get the job.

Friends of Mr Zanzotto indicated that he was upset by the level of interference from Ladbroke's main board and had, therefore, asked to leave. He will receive no pay-off.

John Wilson, Hilton's executive vice-president and chief operating officer told Caterer there had been no turmoil as a result of the resignation.

"Mr Zanzotto has made a valuable contribution to the strategic thinking at Hilton," added Mr Wilson.

The departure of Mr Zanzotto took the gloss off Hilton's financial results for the six months ending 30 June, which were way ahead of expectations. Profits were ahead almost 35% at £65.8m on a turnover up 6.6% to £874.2m.

Mr Wilson said the leap in profits was due to an improved trading performance around the world and in particular because of an upturn in the UK where most hotels were wholly owned as opposed to being management contracts.

Achieved room rates at London hotels were up 9% with bedroom occupancy six percentage points higher at 81%. Occupancy at Hilton National picked up three percentage points to 67% and room rates were up 2%.

Overall results at Ladbroke were seen by the City as disappointing, despite a rise in pre-tax profits of 23% to £56.5m. Speculation that it might make a bid for casino operator London Clubs was thought unlikely, though some sort of link-up with Hilton Hotels Corporation was not ruled out.