#67 Conrad Hilton Hilton Hotel Dynasty

The Hiltons' story, as detailed by J. Randy Taraborrelli in "The Hiltons: The True Story of an American Dynasty," is a testament to the power of perseverance and entrepreneurial spirit. Conrad Hilton, with a mere $5,000, acquired the Mobley Hotel in Texas, igniting the growth of a global hotel empire now worth billions. Despite immense challenges, including the Great Depression and personal tribulations like his divorce, Hilton's dedication to his business and philanthropy remained unwavering. His life, marked by both monumental success and deep personal regrets, serves as a complex portrait of a man who desired more fun and romance yet was driven by a relentless work ethic and a commitment to service. Conrad's story, shared by the host, emphasizes the importance of balance in life and the impact of decisions made on future opportunities.

• Conrad Hilton Foundation assets were approximately $2 billion as of December 31, 2011.
• Conrad Hilton started with $5,000 to purchase the Mobley Hotel in Cisco, Texas.
• His mother and friends helped him raise the balance of the $40,000 purchase price.
• Hilton's hotel empire expanded both domestically and internationally.
• Baron Hilton viewed his father's success as a quintessential American success story.

"As of December 31, 2011, the assets of the Conrad Hilton foundation were approximately $2 billion, probably more money than Conrad Hilton ever could have imagined making in his lifetime." "His is a true, genuine american success story. Or, as his son Baron once proudly put it, it's definitely one for the record books."

These quotes highlight the immense growth of Conrad Hilton's wealth and the recognition of his success as an emblematic American dream story.

• Conrad Hilton believed in earning wealth the "good old fashioned way."
• He was reluctant to leave his fortune to his heirs without instilling a strong work ethic in them.
• A significant portion of his estate was left to charity, with less than 1% to family members.
• He was devoutly religious and donated to hospitals and the Catholic Church.

"It had long been Conrad's belief that merely being related to him should not guarantee his heirs a carefree, privileged life." "And he gave over 99% of that to charity."

These quotes express Conrad Hilton's philosophy on wealth and inheritance, emphasizing his desire to pass on values rather than just wealth, and his commitment to charitable giving.

• Conrad Hilton was optimistic despite the Great Depression and World War II.
• He believed in America's potential for recovery and prosperity.
• His religious beliefs played a significant role in his life, providing comfort.
• Hilton felt the loneliness of ambition and referred to his hotels as his "women."

"Conrad was a new breed of businessman for his times, optimistic when there seemed little reason to be." "His religion was always a source of comfort for him."

These quotes reveal Hilton's unwavering optimism and the solace he found in his religious faith, which were central to his character and business approach.

• Hilton was born into a large family and learned business from his father.
• His father, Gus Hilton, was a successful entrepreneur with a variety of ventures.
• Conrad Hilton was inspired by Helen Keller's autobiography, "Optimism."
• Hilton's first foray into hospitality was a family-run hotel during a financial panic.

"Thus, it was at his father's elbow that he began his apprenticeship into the world of business." "One day he found a copy of a book by Helen Keller... Keller wrote, 'Optimism is the faith that leads to achievement.'"

These quotes underscore the influence of Conrad Hilton's father on his business acumen and the impact of Helen Keller's philosophy on his attitude towards life and business.

• Hilton had a brief stint in politics before becoming a banker at 26.
• His diverse experiences contributed to his later success in the hotel industry.
• Hilton's hands-on approach in the hotel business was crucial to his understanding of the industry.

"With about $30,000, 3000 of his own. And the rest scrounged up from friends and investors, Conrad opened the New Mexico state Bank of San Antonio in September 1913." "Not only did Conrad manage the hotel, but he worked the desk, was the concierge, and did pretty much everything he could think of to keep the enterprise afloat."

These quotes highlight Hilton's entrepreneurial spirit, his willingness to take on multiple roles, and his journey to becoming a prominent hotelier.

• Conrad Hilton's initial business ventures, including a small-town bank and managing a musical group, were unsuccessful.
• Despite his failures, Conrad continued to exhibit optimism and a strong work ethic, managing multiple roles within the musical group.

"So customers failed to materialize and by year's end, the bank would close its doors. Another failure." "Despite his best efforts, his first entrance into show business was a colossal failure."

The quotes emphasize the lack of success in Conrad's early endeavors, highlighting his persistence despite setbacks.

• Conrad Hilton was drafted into the army and served in the quartermaster corps during World War I.
• His service in France broadened his worldview and provided him with valuable management experience.
• The death of his father and the end of San Antonio's boom days influenced his decision to seek opportunities elsewhere.

"Before, I had been a big frog in a small pond. Now in Paris, I realized I was just a tadpole in a big ocean."

Conrad's self-reflection illustrates his realization of the vast opportunities beyond his small-town life.

• Conrad Hilton shifted his focus to the oil fields of Texas, not as a wildcatter but by supporting the industry's infrastructure.
• He purchased his first hotel, the Mobley, attracted by its high demand and potential for improvement.
• Conrad's approach to business emphasized market demand and efficient space utilization.

"Conrad was astonished to find the place was fully occupied with a waiting list of customers attracted to its low room cost."

This quote highlights the market demand that drew Conrad to the hotel industry.

• Conrad valued his employees, holding regular meetings and addressing their concerns.
• He shared his personal guidelines for success with his staff, which included honesty, enthusiasm, and responsibility.

"Find your own particular talent. Be big. Be honest. Live with enthusiasm."

Conrad's advice to his employees reflects his belief in personal growth and integrity as key to success.

• Conrad quickly expanded his hotel empire before the Great Depression hit.
• Despite losing most of his hotels, he managed to save the El Paso Hilton through strategic cutbacks and financial support from suppliers and his mother.
• His refusal to declare bankruptcy during the Depression earned him a strong reputation among creditors.

"I had a sense that if I could just survive this, I could survive anything."

Conrad's determination during the Depression showcases his resilience and foresight in maintaining his business.

• After the Depression, Conrad's reputation allowed him to acquire hotels at a fraction of their construction costs.
• His strategy of purchasing and renovating distressed properties continued to be successful.
• Conrad's long-term perspective and loyalty to suppliers and creditors paid off as his business recovered and grew.

"They all wanted to sell to Conrad Hilton because he was the one who didn't declare bankruptcy."

This quote emphasizes the trust and opportunities Conrad gained by honoring his financial commitments.

• During World War II, Conrad Hilton's friend Arnold Kirkabee proposed a joint venture to purchase the Hotel Pierre in New York.
• Conrad's willingness to explore new partnerships and ventures demonstrates his continued ambition and adaptability in the hotel industry.

"I've got this bug in my ear about the Hotel Pierre. He told Conrad, what do you think about going into a little joint venture?"

This quote introduces the potential collaboration and expansion of Conrad's hotel empire into New York.

• Conrad Hilton was considering acquiring another hotel during wartime.
• He decided to be prudent due to the uncertainty of war impacting America.
• Suspected decline in vacation travel due to the war.
• Inspected the Fifth Avenue hotel, a long-term goal to make it big in New York.
• His success felt insignificant without a stake in New York real estate.

"Conrad agreed to do an inspection of the Fifth Avenue hotel in order to gauge the possibility."

Conrad Hilton was assessing the potential acquisition of the Fifth Avenue hotel to fulfill his ambition of succeeding in New York's real estate market.

• Conrad Hilton was capable of conversing with anyone on various subjects.
• He had many distinguished friends but was fundamentally shy.
• He was a private person with few close friends.
• Lived alone for about 40 years, even with wealth and servants.
• Married twice later in life but maintained privacy, even from his spouses.

"One of the great paradoxes of his personality was that he was fundamentally quite shy."

Despite being a public figure with influential friends, Conrad Hilton was inherently a shy and private individual.

• Felt depressed on New Year's Eve 1941 due to loneliness.
• Despite success, he realized the importance of relationships and family.
• Regretted not developing deeper personal connections.
• His story is used to highlight the need for a well-rounded life beyond business success.
• Conrad Hilton's life is an example of the emptiness that can accompany material success.

"While he had previously done a lot with his life all around him, it was glaringly obvious that others had somehow done what he hadn't."

Conrad Hilton recognized that despite his professional achievements, he lacked fulfilling personal relationships, which led to feelings of loneliness and regret.

• Aggressively expanded his hotel business before the Great Depression.
• Faced personal tragedy and business challenges during the Depression.
• Spent time away from home to save his hotels, straining his marriage.
• Considered borrowing against his life insurance policy to stay afloat.
• His wife Mary felt neglected and dissatisfied with their living situation.

"Every day was an uphill climb. It wore him down."

The Great Depression posed significant challenges to Conrad Hilton's business and personal life, leading to a strenuous period of trying to maintain his hotel empire.

• Conrad's marriage was strained by his business commitments.
• Wife Mary had an affair and they had a son Eric during a tumultuous time.
• Speculation about Eric's paternity, but Conrad never publicly questioned it.
• Conrad gained custody of older sons post-divorce but let Eric live with Mary.
• Maintained dignity and privacy regarding his failed marriage and personal issues.

"Mary expecting a baby. He noted simply, he is just as unsentimental as in his entry on July 1, 933, Eric Michael Hilton, born at St. Paul's at 10:00 a.m."

Conrad Hilton's diary entries reflect his emotional detachment during a difficult period in his personal life, with his focus primarily on business concerns.

• Determined to succeed in business on his own terms.
• Relied on prayer and intuition for major business decisions.
• Believed in cultivating an inner voice and not making snap decisions.
• Advocated for a balanced approach to business and personal life.
• Emphasized the importance of practicing and preparing for bigger goals.

"You have to be willing to listen and then make decisions based on what the voice is telling you."

Conrad Hilton trusted his intuition, which he equated with divine guidance, to make informed decisions in his business ventures.

• Understood the value of money and was cautious with spending.
• Disagreed with his wife Zaja Gabor's extravagant spending habits.
• Recognized the importance of earning and working for wealth.
• Financial prudence was a key aspect of his relationships and business dealings.

"He quickly realized that Zhaja didn't understand the value of money."

Conrad Hilton's views on money were shaped by his own experiences of earning wealth, leading to conflicts with those who did not share his perspective on financial responsibility.

• Conrad Hilton believed in earning money fair and square without giving it away needlessly, even to family.
• He was philanthropic, donating to many charities, especially Catholic aid organizations.
• Conrad insisted that family and friends should work hard and earn their own way.
• He thought that financing their lives would be detrimental in the long run, potentially destroying their work ethic and appreciation for the value of money.
• Conrad's approach may seem harsh, but he believed it was for their ultimate benefit.

"Moreover, he felt it wasn't even fair to give them money. His financing of their lives would, he felt, be detrimental to them in the long run, eroding any motivation they might have to achieve wealth on their own and also diminish their appreciation for the value of the dollar."

The quote explains Conrad's belief that giving money to family and friends would harm their drive and understanding of money's value, which reflects his stringent approach to wealth and personal responsibility.

• Conrad survived the Great Depression, which influenced his philosophy about money and the importance of hard work.
• He was married to Zsa Zsa Gabor, who was much younger and perceived as a gold digger.
• Conrad found glamour expensive and viewed Zsa Zsa as self-involved.
• Despite his wealth, Conrad lived a life of service and philanthropy, contrasting with Zsa Zsa's perceived materialism.
• Conrad's experiences with Zsa Zsa reinforced his philosophy on the dangers of easy wealth and the importance of service to others.

"Glamour, I found, is expensive, he later recalled. And Zsa Zsa was glamour raised to the last degree."

The quote reflects Conrad's recognition of the high cost of a glamorous lifestyle, personified by his wife Zsa Zsa, and highlights the tension between his values and her materialistic tendencies.

• Conrad Hilton sought advice from successful businessman Henry Crown when considering hotel acquisitions in Chicago.
• He faced challenges negotiating with the owner of the Stevens Hotel, which led him to consider the Palmer House instead.
• Conrad's strategy involved making the Stevens Hotel owner believe he had moved on, increasing the owner's eagerness to sell.
• The negotiation for the Stevens Hotel was successful, and Conrad also managed to negotiate a deal for the Palmer House.
• Conrad's business dealings were marked by integrity and a strategic approach to achieving his ambitions.

"Hilton made an offer to Hollis for 18.5 million for the Palmer house, contingent upon him taking a look at the hotel's financial and tax records and the rest of the corporation's books."

This quote demonstrates Conrad's meticulous approach to business, ensuring due diligence before finalizing any deal, which is indicative of his responsible and strategic business mindset.

• Conrad Hilton's parenting style reflected the tough love he received from his own father, Gus.
• Baron Hilton, Conrad's second son, took over the family business due to his similar work ethic and intelligence.
• Nikki, Conrad's oldest son, struggled with addiction and failed to live up to his father's expectations, ultimately leading to his tragic death.
• The Hilton family was large and complex, with many members experiencing both successes and tragedies.

"Nikki, the oldest son, was an alcoholic and a drug addict, and, for lack of a better word, just kind of a loser?"

This quote provides insight into the personal challenges faced by Nikki Hilton and the impact of Conrad's strict expectations on his children, particularly in the context of family dynamics and succession planning.

• Conrad Hilton's life was marked by immense business success and personal hardships.
• The book detailing his life offers a comprehensive look at the Hilton family history and Conrad's impact.
• Despite his achievements, Conrad expressed regrets about not having more fun and romance in his life.
• The story of Conrad Hilton and his family serves as a microcosm of life's journey, with its highs and lows.

"At 62, when he looked back on his life, he was of course, proud of all his business achievements. But he did have certain regrets."

This quote encapsulates Conrad Hilton's introspection in his later years, revealing his thoughts on the balance between business success and personal fulfillment, which is a poignant reflection on the costs of a life dedicated to ambition.