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Hilton to Gain Control of Hawaiian Resort

June 03, 1998|Bloomberg News

Hilton Hotels Corp. said it will invest as much as $400 million in Hilton Hawaiian Village and take a controlling interest in the resort, which it now owns equally with Prudential Insurance Co. of America. A $400-million investment would give Hilton Hotels, the owner of New York's Waldorf-Astoria, 100% ownership in the beachfront Honolulu resort, Merrill Lynch analyst Naomi Talish said. The Beverly Hills-based hotel and casino company, which plans to make the investment in six to 24 months, declined to comment on the size of its stake. Hawaiian Village, with more than 2,500 rooms on 20.2 acres, is one of Hilton's top properties in terms of cash flow, a Hilton spokesman said. Its earnings will improve when the Japanese economy recovers and when Hawaiian Village is expanded, analysts said. With the Hawaiian Village purchase, Hilton will have made $725 million in acquisitions this year. Hilton shares fell 19 cents to close at $31.19 on the New York Stock Exchange.

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