Stephen F. Bollenbach, president and CEO of Hilton Hotels Corp., spoke about how Hilton responded to the Sept. 11 terrorist attacks at a talk at Cornell University Nov. 30. One franchise, the Millennium Hilton next to the World Trade Center, had its entire front blown off following the attacks on the twin towers. While there were no injuries to staff or guests, the facility is still being rebuilt.

Bollenbach's talk was part of a course for undergraduates at Cornell's School of Hotel Administration taught by Dean David Butler. The course brings leaders in the hotel industry to Cornell's campus to discuss key issues the industry faces today.

Bollenbach discussed how Hilton managed its hotels after Sept. 11, which he called "the greatest business crisis in my lifetime." The hotel chain chose to honor all canceled room reservations that resulted from canceled flights. Hilton also decided to "manage for recovery, not crisis" in all business decisions. That meant no layoffs at owned and operated properties but, instead, reduced shifts for some employees when business temporarily slipped following the attacks. The chain also went ahead with all planned hotel renovations projects.

"We live in a totally uncertain world," said Bollenbach, "but we knew we could bring certainty in the way we manage. We need our most important resource -- our people -- so they'll be there when the business recovers." The news so far is encouraging, he added. "We've seen a very rapid recovery in the hotel business, with near-normal occupancies" in most locations.

Bollenbach also shared his formula for success at Hilton: a mixed portfolio of owned and operated and franchised brands that cover all price points, from moderate priced to luxury hotels, such as New York City's Waldorf-Astoria, and a gaming division, Park Place Entertainment, that is the world's largest and owns such gems as Caesars Palace in Las Vegas.

Bollenbach, who held executive positions at the Trump, Marriott and Disney corporations before becoming CEO of Hilton in 1996, advised students to "become an expert in some area so people will call on you to find out what's happening." In his case, he said, he became a resource to higher-ups by studying long financial reports that colleagues considered too dull to read. He also attributed much of his success to luck, with the following caveat: "If you analyze your life, you'll see lucky things happen to you every day. The trick is to realize when you are lucky."