of $100 million on the Palmer House Hilton
|CHICAGO - Aug. 17, 2005 -- Thor Equities(SM) and Hilton Hotels Corporation
(NYSE:HLT) announced today that Thor, through an affiliate, has acquired
the historic Palmer House Hilton in Chicago from Hilton for $230 million.
The legendary property is now expected to undergo a renovation in excess
of $100 million.
Thor, which specializes in the acquisition and redevelopment of assets in urban settings, will include the creation of an exciting new retail center at the hotel's base that will strengthen the State Street shopping district and serve the prestigious businesses located in the downtown Loop. Hilton will continue to operate the property under the terms of a long-term management contract.
"The Palmer House Hotel is a welcome addition to Thor's outstanding portfolio of properties," said Joseph J. Sitt, CEO of Thor Equities. "This historic site enjoys a reputation as one of America's grandest and most beloved hotels. We are excited by the opportunity to further improve its stature through a $100 million renovation that will add an exciting new retail wing to the base of the hotel. Through this redevelopment, The Palmer House will remain downtown Chicago's preferred destination."
"This extraordinary property has played an important role at Hilton Hotels Corporation ever since Conrad Hilton purchased it back in December of 1945," said Robert M. La Forgia, senior vice president and chief financial officer, Hilton Hotels Corporation. "The Palmer House Hilton remains one of the world's leading hotels and that is why we are delighted that our outstanding owner, Thor, is dedicating the resources necessary to complete the renovations that will restore this important property to its legendary grandeur. We are also pleased that Hilton will continue to manage the hotel and be associated with the hotel's terrific team members, many of whom have worked at the property for decades."
Among the most famous hotels in the world, the Palmer House was built by wealthy entrepreneur Potter Palmer and opened on September 26, 1871. It burned to the ground thirteen days later in the Great Chicago Fire. Undaunted, Potter Palmer started construction on a new hotel across the street from the former building and reopened it in July 1873, as the first hotel to be equipped with electric lights and telephones in each room. Since that date, over 135 years ago, the landmark hotel has:
Thor Equities(SM) is a national development and redevelopment company specializing in urban real estate projects and public/private partnerships. Chairman and CEO Joseph J. Sitt gained national prominence as founder of Ashley Stewart Ltd., an upscale, ladies' apparel chain serving the African-American market. Under Mr. Sitt's leadership, Ashley Stewart grew to more than $300 million in annual sales in 300 stores nationwide. Mr. Sitt's other retail ventures have included The Children's Place, Petrie (Marianne) Stores and Kidspot.
Thor has acquired and is developing a retail, office, and residential portfolio totaling approximately six million square feet and valued at more than $1.4 billion. The company has purchased properties in New York City, Chicago, New Orleans, Philadelphia, Atlanta, Detroit, Puerto Rico, Cincinnati, South Florida, Orlando and Norfolk, Virginia. Thor and its affiliate are now in the process of acquiring properties in additional locations.
Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises more than 2,300 hotels, resorts and vacation ownership properties. Its properties includes many of the world's best known and most highly regarded hotel brands including Hilton(R), Conrad(R), Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton Garden Inn(R), Hilton Grand Vacations Company(R) and Homewood Suites by Hilton(R).
Hilton Hotels Corporation
|Also See:||Hedge Fund Blackacre Institutional Capital Management May Buy Chicago's Palmer House for Upwards of $250 million / May 2005|
|Hilton Hotels Corp. Considers Putting the Palmer House Hilton Up for Sale; Hilton Has Owned the 1,639-room Hotel Since 1945, May Seek up to $250 million / November 2004|