BEVERLY HILLS, Calif.- March 16, 1998--Hilton Hotels Corp. (NYSE:HLT) and The Prudential Insurance Company of America Monday announced that Hilton has signed an agreement to purchase the 304-room Hilton at Short Hills in Short Hills, N.J., from PM Short Hills Joint Venture, a partnership of Prudential and Short Hills Investment Associates L.P., a syndication vehicle of Mitsui Real Estate Sales New York Co. Ltd.
The purchase price for the 100 percent interest in the hotel is $95 million. The transaction is scheduled to close on March 20, 1998.
"The Hilton at Short Hills is a spectacular property, and its status as the only Five-Diamond property in New Jersey has made it a popular destination for luxury-oriented leisure travelers, as well as business travelers. This transaction, and our purchase earlier this year of the McLean Hilton in the metropolitan Washington D.C. area, are outstanding examples of Hilton's continued commitment to grow by acquiring full-service hotels," said Matthew J. Hart, executive vice president and chief financial officer, Hilton Hotels Corp.
John Gregorits, real estate investment vice president for Prudential, said: "For 10 years, the Hilton at Short Hills has been one of the crown jewels of our portfolio. It has been the preferred hotel for out-of-state visitors to Northern New Jersey, as well as the area's premier banquet and restaurant facility. As a corporate neighbor and customer, we'd like it to stay that way -- and under Hilton Hotels' ownership, we're confident that it will."
Located 20 miles from New York City, and in close proximity to many major corporate headquarters and directly across from the renowned shopping in the Mall at Short Hills, The Hilton at Short Hills is the only AAA Five-Diamond hotel in New Jersey. In addition to its richly appointed rooms, this deluxe property also features an award-willing European-style health spa, extensive meeting space, a 5,100-square-foot grand ballroom and the area's only Five-Diamond restaurant, The Dining Room.
Developed by Prudential and opened in 1988, The Hilton at Short Hills has received AAA's Five-Diamond Award for both lodging and cuisine for eight consecutive years. It is one of only 19 hotels in the United States to earn the designation. To be awarded Five Diamonds, the hotel provides the highest level of service, luxurious facilities and numerous extra amenities. Its facilities and operation are considered standard-setters in the industry.
Hilton Hotels Corp. is recognized internationally as the preeminent gaming and lodging hospitality company. The company develops, owns, manages or franchises hotels, hotel-casinos, resorts and vacation ownership properties under the Hilton, Conrad International, Bally and Flamingo brand names.
With headquarters in Newark, N.J., Prudential is the nation's largest life insurer and one of its largest financial institutions. For decades, the company has been one of the leading investors in commercial real estate. On behalf of its General Account, Prudential is in the process of sharply reducing its direct ownership of equity real estate, in favor of real estate securities and other more flexible and opportunistic forms of real estate investment.
Mitsui Real Estate Sales New York Co. Ltd. is the subsidiary company
of Mitsui Real Estate Sales Co. Ltd. In Tokyo, which is one of the largest
brokerage firms in Japan and has been the leading company in the residential
brokerage industry for 10 years. Currently, the company is making new business
plans to introduce foreign investors to the properties in major cities
in Japan, as a broker or advisor for their investment.