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to the RLJ Urban Lodging Fund, LP . Two Hilton Suites and One Embassy Suites for $72 million in Cash |
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| BEVERLY HILLS, Calif. - June 14, 2005 -- Hilton Hotels Corporation
(NYSE:HLT) announced today that it has sold two Hilton Suites and one Embassy
Suites Hotel to Bethesda, Maryland-based RLJ Urban Lodging Fund, LP, an
affiliate of RLJ Development, LLC, for $72 million in cash.
The three properties are the 226-suite Hilton Suites Phoenix in Arizona, the 230-suite Hilton Suites Anaheim in California and the 216-suite Embassy Suites Cleveland East Beachwood. All three properties will retain their current branding under long-term franchise agreements. In addition, Hilton will continue to manage the Hilton Suites Phoenix. "We are pleased to be able to sell these assets at attractive prices while continuing to have them remain part of the Hilton Family. We value our relationship with RLJ Development and their affiliates, who now own 12 hotel properties within the Hilton Family," said Robert M. LaForgia, senior vice president and chief financial officer for Hilton Hotels Corporation. Thomas J. Baltimore, Jr., president of RLJ Development, added "We are delighted to add these high-quality, Hilton-Branded assets in desirable markets to the RLJ Urban Lodging Fund, LP, which now stands at seven hotels. These three hotels were purchased at a significant discount to replacement cost." RLJ Development, LLC is a privately held real estate investment company founded and led by Chairman and CEO, Robert L. Johnson and President, Thomas J. Baltimore, Jr. RLJ Development, LLC currently owns 11 hotels and is the largest African-American wholly-owned real estate investment company in the U.S. with approximately $400 million in assets. The RLJ Urban Lodging Fund, LP closed in April 2005 with over $315 million in equity commitments from ten institutional investors including several major public and corporate pension plans, financial institutions and two dominant hospitality entities. When combined with leverage it will have total purchasing power in excess of $900 million. With the addition of these three hotels, the RLJ Urban Lodging Fund, LP now owns a total of seven properties. Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises approximately 2,300 hotels, resorts and vacation ownership properties. Its portfolio includes many of the world's best known and most highly regarded hotel brands, including Hilton®, Conrad®, Doubletree®, Embassy Suites Hotels®, Hampton Inn®, Hampton Inn & Suites®, Hilton Garden Inn®, Hilton Grand Vacations Company® and Homewood Suites by Hilton®. |
| Contact:
Hilton Hotels Corporation
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