For most people, a few wild years in their twenties might cost them a job offer or leave behind a few regrettable photos online. For Paris Hilton, it may have cost her family $4.5 billion.
In the early 2000s, Paris wasn’t just famous — she was infamous. She starred in the reality show “The Simple Life,” turned catchphrases into national slogans, and appeared at every party worth photographing. But behind the pink Juicy Couture tracksuits and tiny dogs was a string of scandals that made international headlines: a leaked sex tape, multiple DUI arrests, and an endless parade of paparazzi snapshots showing her stumbling out of nightclubs at 3 a.m. For a Hilton, it was all a little too much — and no one was more horrified than Paris’s grandfather, Barron Hilton, the man tasked with upholding the dignity of the family empire.
Barron was a multi-billionaire thanks to the hotel empire founded by his father, Conrad Hilton. At its peak, Hilton Hotels operated more than 500 hotels across six continents and generated billions in annual revenue. And for much of his adult life, Barron had every intention of keeping that legacy in the family. His estate plan was simple: pass down his fortune — and the Hilton name — to his children and grandchildren, approximately two dozen people, ensuring that the dynasty continued for generations. That is, until Paris came along.
History of the Hilton Fortune
Conrad “Connie” Hilton bought his first hotel, the Mobley Hotel in Cisco, Texas, in 1919 after a deal to purchase a local bank fell through. His timing was impeccable. The Texas oil boom had just begun, and demand for lodging was so high that rooms at the Mobley were often rented out in eight-hour shifts, turning over three times a day.
Hilton quickly reinvested his profits, building the high-rise Dallas Hilton in 1925, followed by three more hotels across Texas over the next five years. During the Great Depression, he lost several properties and came close to bankruptcy — a temporary setback in an otherwise sterling career. Over the next few decades, Hilton rebuilt and expanded aggressively, eventually creating the world’s first international hotel chain. By 1966, his second son, Barron Hilton, succeeded him as president of Hilton Hotels.
When Conrad Hilton died in 1979 at the age of 91, he left $10,000 each to his nieces, nephews, and daughter, and $500,000 each to his two surviving siblings. The remainder of his estate was bequeathed to the Conrad N. Hilton Foundation, which he had founded in 1944. Barron Hilton, despite inheriting the leadership of the company, contested the will. A settlement was ultimately reached: Barron received 4 million shares of Hilton Hotels, the Foundation received 3.5 million shares, and a separate W. Barron Hilton Charitable Remainder Unitrust was established with 6 million shares.
Barron Takes Over
After settling the dispute over his father’s estate, Barron Hilton turned his full attention to growing the family business. Taking over as president and CEO of Hilton Hotels Corporation in 1966, Barron proved to be much more than just the heir to a famous name — he was a sharp, forward-thinking businessman in his own right.
Under Barron’s leadership, Hilton entered a period of innovation and aggressive expansion. He steered the company into the fledgling Las Vegas gaming industry, acquiring marquee properties like the International and Flamingo hotels. Hilton Hotels became the first major hospitality brand to operate casinos, solidifying a connection to Las Vegas that persists today. Barron also expanded the company’s international footprint, modernized its operations, and launched early customer loyalty programs that became industry standards.
By the late 1990s, Hilton Hotels had become one of the largest and most respected hospitality companies in the world. In 2007, Barron orchestrated the biggest financial move of his career: selling Hilton Hotels Corporation to the Blackstone Group for $26 billion. The deal closed in October 2007, just weeks before Barron made another stunning announcement — he was amending his will.
Thanks to the enormous windfall from the Blackstone sale, which reportedly netted Barron close to $1 billion personally, Barron found himself sitting atop a most-liquid $4+ billion fortune.
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Losing $4.5 Billion
As we stated at the top of this article, for most of his adult life, Barron’s plan was to leave his fortune to his family. Roughly two dozen people. Unfortunately for those two dozen extended family members, that’s not what ended up happening.
By the mid-2000s, Barron Hilton had reportedly grown mortified by the public behavior of his granddaughters, Paris and Nicky Hilton. Sex tapes, DUI arrests, endless reality shows, and general tabloid tomfoolery, it was all too much for the man who had spent his life upholding the Hilton name.
So, at Christmas 2007, just two months after cashing out the company, Barron made a stunning announcement: Instead of leaving his multi-billion-dollar fortune to his family, he would donate 97% of it to the Conrad N. Hilton Foundation. Just 3% would be split among roughly two dozen family members.
The math was brutal.
Instead of each heir walking away with about $190 million, they would now split a much smaller pool: 3% of $4.5 billion, or about $135 million total. Divided two dozen ways, that worked out to roughly $5.6 million pre-tax per person. OUCH.
Some reports suggest that Paris was cut out entirely. Not that she needs the help — between her personal brand, endorsements, and DJ gigs, Paris Hilton today has a net worth of $300 million.
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A Different Kind of Legacy
The mission of the Conrad N. Hilton Foundation, as outlined in Conrad Hilton’s last will and testament, is simple: “relieve the suffering, the distressed, and the destitute.” The foundation focuses on urgent global issues like homelessness, substance abuse, mental illness, children in need, and disaster relief.
It also awards the Conrad N. Hilton Humanitarian Prize — the largest humanitarian award in the world, which grants $1.5 million annually to a nonprofit organization that has made significant advancements in easing human suffering.
Thanks largely to Barron’s redirected fortune, today the foundation has $7.3 billion in assets. And that’s AFTER it has already given $3.6 billion in grants since its inception.
So, in a strange, roundabout way, the world has Paris Hilton to thank for being… Paris Hilton.
