Beverly Hills, California-InternetWeek magazine has named Hilton Hotels the E-Business of the Year due to the success of its effort to radically change its business model through the Internet and become a multibrand franchise of third-party assets. Such initiatives currently account for 30 percent of the company's revenue.

Hilton booked $300 million in hotel room revenue last year, while the number of Hilton Web site visitors doubled to 30 million. On the B2B end, Hilton has expanded its private supply marketplace to 500 sites and 3,500 suppliers. On the B2C end, "what we're seeing here is a hotel that is trying to deliver all its brands through an integrated channel," says Krista Pappas, director of travel services for Gomez Inc.

Hilton CIO Tim Harvey is overhauling the back-end system to support procurement applications and a redesigned Web site that will be configured to give Hilton's various hotel sites a consistent yet personalized customer experience, as well as constructing a common property management platform.

Hilton Hotels operates Hilton, Doubletree, Hampton Inn & Suites and other hotel brands. -InternetWeek