There are lessons to be considered in Hilton’s response to one of their franchisees' refusals to serve federal agents earlier this month in Minnesota.
Background: A franchise property (under the Hilton/Hampton brand) gained media attention when it was reported that it canceled reservations for federal government employees tied to the recent anti-immigration efforts. Hilton quickly stripped the hotel of its branding for refusing service to federal agents.
For leaders of Small and Medium Enterprises (SMEs), this is not just a "big brand" problem. It is a cautionary tale about how decentralized operations can create reputational issues that need to be swiftly addressed.
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