If I take a look at the Hilton hotels stock chart, the share price in 2014 was below 60 US$ in 2014. Today, 8 years later the price per Hilton share is hoovering between US$ 145.– and US$ 160.– and this, despite the global pandemic, which has hit the hotel industry badly. In simple terms, someone who had invested 1000 US$ in 2014 in the stock would have tripled his investment. Comparing this just with what inflation would have done to the money if it would have been deposited into a simple savings account. Back in 1985, when working at the Waldorf=Astoria hotel in New York City I had received my first 50 Hilton shares from Barron Hilton personally as recognition after working through an 8 week long, citywide strike. These 50 initial shares at then value of 54 US$ per share grew into 100 shares after the first 1 for 2 stock split in June 1988 and then, a few years later quadrupled into 400 shares after the second split in September of 1998. These are numbers worth to look at.
I do not know, if you are just starting your career, if you are already in the early stage of getting into management or if you are already a full blown departmental manager, even a General Manager. My intention here is not, to provide you with investment advise of any kind nor to recommend for you to invest heavily into your own company stocks. There are more qualified individuals and I am happy to point them out to You. Not stockbrokers, investment gurus but real life successful hoteliers, who knew and know how to invest from early on smartly with a long term plan in mind, which is of course financial security and down the line your own financial freedom. Ultimately your career plan goes hand in hand with your financial destiny.
My reasoning to write about investing in your company is actually another one. Please keep in mind that I had written earlier about what kind of company you should consider working for and make a real effort to get into one of these. In my career planning advise I had shown a way of how to get into these companies. Of course, they are the large companies, foremost Hilton, Marriott, Hyatt, IHG, Wyndham and IHCL (Taj Hotels) (if you are working in Asia, especially India). If you look at the long term development of their share prices, you will not have any doubt, that putting some money into them will eventually reward you.
Now, I do not want to elaborate longer on the financial aspect of being a shareholder in the company, you are working for. But even with only a single share or a handful of share you become a part owner of your company. And even if you are a part owner on a micro level with minimal returns you will see some benefits which can give your career a real boost. How so, you will ask . Well, as a shareholder you will obtain some basic shareholder rights and possibly you will no longer just be an employee, but also begin to feel like an owner. You will learn out of these reports much more than you would otherwise find out and that alone will set you apart from your fellow colleagues who are competing with you possibly for the same position or promotion as you are.
You have heard the saying: “Knowledge is Power” and that is so true. With the quarterly or the annual report comes a lot of information which can have a direct or indirect impact on how you manage and plan your career. For example the announcement that a hotel will be opening in a certain country or city should get you exited as it opens up the door for you for early applications. Large companies routinely publish a succession planning and open position sheet, even online by now. For you, as a shareholder to know, where the next big 5 star hotel or resort comes up is potentially an opportunity for you to prepare yourself and when the time comes to announce your interest with the HR Manager or the General Manager. And this takes me to the second point, which is equally important.
You suddenly will have access to the leadership within your hotel and even beyond your hotel. You are given the power of knowledge about what is happening within your company and if you are doing it smart, you will have – from the day you apply my secret technique- access to the General Manager of your hotel or at least a department head. It gives you the opportunity to ask questions about the company, which are no longer just about your job. As a shareholder you are suddenly no longer just an employee. You stand out and you are a shareholder. You are entering another dimension. Even with only one share. How many shares you own is for you to know but not to tell.
The right for information and the right to vote are – from my humble perspective- for now the 2 most important rights which can have help you to shape and influence your career directly and instantly. There are more rights, like the right to influence fundamental changes within your company (corporation), the right to hold meetings and make proposals. Then there is of course the right to transfer ownership. In simple terms you can buy more shares or sell your existing shares on any trading platform where you have possibly your account. (E-Trade, El Torro Saxon Bank and so on.) And finally you have the right to receive dividends – usually on quarterly basis and you have the right to sue for wrongful acts. These are all shareholders rights. You will probably not use most of them but the right for information, the right to trade and the right to vote are those rights you should make an effort to understand, because these could eventually become tools in your arsenal to foster and amplify your career ambition sooner than later. Trust me in this.
One of my mentors was a long-term Vice President with Hilton Hotels Corporation. Besides being an excellent General Manager and leader he also was an investment afficionado. Of course as a veteran in the Hilton Organisation he did not only know everyone but also was part of the company stock option program. As a long term holder of Hilton stock he was also actively trading with it. He knew when to sell and when to buy. And he was always, always spot on. He taught me a lot about investing and why to be a shareholder from early on. Besides being a favorite mentor for me, he was also a great teacher and looking back today, I wish I could have spent a few years longer with him. However he was transferred to another part of the US and I shortly after left Hilton to begin my first General Manager Job in Dubai.
To finish up let me come back one more time to your career plan. Of course, not everyone will have employment with one of the large global companies. However if you are really ambitious and do want to see the world and make your mark in the hotel industry for yourself and also others, then choose the company you want to work for wisely and then, try to stay with them for as long as you can. Alone the many brands within the Hilton, the Marriott or the Taj family will make it easy to remain within one large organization, which in due time could become your professional family. I was fortunate enough to have been part of at least 2 such families, one of course was Hilton and the other one was Taj Hotels, Resorts and Palaces. Both great companies, with their own culture. Absorbing and becoming part of this culture takes time and is a commitment. The good thing is, they not only will invest in you, if you fit in but they also give you the opportunity to invest in them and from my point of view taking a small percentage of your annual salary at any stage will provide not only long term financial gain but for sure great career opportunities too.
I know, you will make the best out of it. Be smart and plan wisely. If you do not know how, contact me with a simple note through my email or book an appointment.
Be well and prosper on your journey !
Helmut H Meckelburg