Hotel Online Special Report
Hilton Hotels Corp. and Gosnell Builders Announce the Acquisition of the Pointe Hilton Tapatio Cliffs Resort
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 Pointe Hilton 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.

Hilton Hotels Corp.
Beverly Hills
Kathy Shepard, 310/205-7676
Also See:
Host Marriott Corporation Acquires Ritz-Carlton, Phoenix for a Total of $75 Million / May 1998 
Hilton Introduces New Global Corporate Identity / June 1998 

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