|BEVERLY HILLS, Calif - Aug. 18, 1998--Hilton Hotels Corp.
and Gosnell Builders Tuesday announced that the two companies have formed
a partnership and have jointly acquired a 100 percent interest in the 585-room
Tapatio Cliffs Resort in Phoenix.
The terms of the partnership call for Hilton to invest approximately
$26.3 million for a 75 percent controlling
interest in the resort while Gosnell will invest approximately $8.8 million
and receive a 25 percent interest. The total transaction price is approximately
$116 million including assumption of debt. Hilton will continue to manage
the property pursuant to a joint venture management agreement with Gosnell.
The Pointe Hilton Tapatio Cliffs Resort, a Hilton-managed property since
1991 is one of the premier destination resorts in Phoenix.
The property features a championship 18-hole golf course, the four-acre
"The Falls" water recreation area which has two swimming pools, two spas
and a 130-foot-long enclosed water slide, four restaurants, an equestrian
center, fitness center and 39,200 square feet of meeting space.
"This acquisition allows us to secure our position in one of the fastest-growing
leisure and business destinations in the United States," said Matthew J,
Hart, executive vice president and chief financial officer, Hilton Hotels.
"This property is a great asset. We purchased it at below replacement cost,
and it should deliver excellent returns to our shareholders. We have now
invested over $850 million in superior lodging assets in 1998."
"As the original designer, developer, owner and operator of the three
award-winning Pointe Hilton properties, we are very pleased that Hilton
has joined us as owners of the Pointe Hilton at Tapatio Cliffs," said Gosnell
Builders President Richard G. Kafka. "This new partnership represents a
long-term and strengthened commitment to the resort."
Gosnell Builders is one of the most respected resort and mixed-use
builders and developers, with more than 3,500 resort suites under development
in Southern California and around the world. Hilton Hotels is recognized
internationally as the preeminent gaming and hospitality company. The company
develops, owns, manages or franchises hotel-casinos, resorts, vacation
ownership and hotel properties.