Hilton Taps CEO as Co-Chairman

Hilton Hotels Corp. said Friday that it would appoint a non-Hilton family member, Chief Executive Stephen Bollenbach, to share the chairmanship with 76-year-old Barron Hilton.

Bollenbach, 61, will continue as CEO, and Hilton will cede his role as president to Matt Hart, the company’s current chief financial officer.

Hilton, the son of founder Conrad Hilton, doesn’t have an active role in the company, Bollenbach said. The appointments will take effect after the Beverly Hills-based company’s annual shareholders meeting in May.

Bollenbach said Hart, who also would serve as chief operating officer, was among candidates who may succeed Bollenbach when he retires at 65. Hart, who also worked with Bollenbach at Walt Disney Co. and Marriott Corp., will oversee the hotels and time-share business and will gain hotel management experience, New York-based UBS analyst Keith Mills said.

“Stephen Bollenbach is going to be in more of a strategic position, and Matt will be in more day-to-day operations,” Mills said.

Shares of Hilton rose 2 cents to $16.03 on the New York Stock Exchange. They have risen 48% in the last year. The company trails Marriott International Inc. and Starwood Hotels & Resorts Worldwide Inc. in annual sales.

Hart joined Hilton in 1996 along with Bollenbach.

Robert La Forgia, Hilton’s controller and senior vice president, will become chief financial officer. Hart was Disney’s treasurer and before that chief financial officer at Host Marriott Corp., which was created in the split of Marriott Corp. in 1992.

Hilton owns, manages or franchises more than 2,000 Hilton, Doubletree, Hampton Inn and Embassy Suites hotels.