Las Vegas Sun NewsHilton chain seeks to end license agreement with Las Vegas Hilton
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Sun File Photo
A view of the Las Vegas Hilton at night.
Wednesday
29 June 2011
4:38 p.m.
Updated
29 June 2011 5:55 p.m.
The Hilton hotel chain has put the Las Vegas Hilton on notice that it intends to terminate its license agreement with the casino Jan. 1, which would force the property to give up the name it has held since the 1970s.
The 2009 agreement licenses the right to use the Hilton brand and links the property to Hilton's "Hhonors" loyalty program. It can be terminated by either party at any time and for any reason. Neither party offered a reason.
Las Vegas Hilton spokesman Owen Blicksilver said the property is in discussions with other major hotel brands and expects to announce a new affiliation before the end of the year. There's still an outside possibility the hotel will negotiate a new license agreement with Hilton, he added.
Built by Kirk Kerkorian in 1969, the former International Hotel went through multiple owners, including Hilton Hotels Corp., until private equity firm Colony Capital bought the property in 2004.
The Las Vegas Hilton is among several older casinos that are struggling in the downturn. First quarter losses widened for owner Colony Resorts LVH Acquisitions LLC as business fell. The property blamed "fixed labor and benefits costs" - or, difficulties trimming labor costs as revenue declined. Like some of its Strip competitors, the property reported increases in room rates and convention business in the first quarter, reflecting slightly improved business trends nationwide.
Lenders agreed to extend a loan worth about $250 million through 2012 after the Las Vegas Hilton stopped making interest payments on the loan last year. The agreement with lenders allows the Hilton to defer payments on the loan in exchange for a higher interest rate and capital contributions by Colony of up to $20 million.
"The notification by Hilton does not impact the management, ownership, operations, employees, vendors or guest services at our hotel," Blicksilver said. "This is a great property, an integral part of the Las Vegas experience and a key destination resort for both business and pleasure travelers. That will not change."
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About time. Maybe they can snag the Days Inn brand. This place is (in my Constitutionally-protected opinion) a dump. The last three times I stayed there it was horrible. Hilton did the right thing cutting ties.
The rooms could use a facelift. What I like best about the Hilton is that it has the most convenient monorail stop. Hope they don't mess with that.
Not surprised at all. Guests have been sending back very poor reviews for quite some time now. But word on the street is that allegedly Hilton was mandating that ALL properties that carry their name must have certain amenities, the biggest one being High Definition Television in ALL rooms, an almost cost-prohibative undertaking for the current owners since they skipped on rewiring the hotel in the past. Unless the current owners can secure a line of credit to cover improvements and deferred maintenance for the property to meet Hilton's demands, they'll be ripping the name down in no time at all.
Even having a monorail stop didn't help. hehe.
Been visiting and staying at the LV Hilton for years and the staff has always been wonderful and HHonors guests are treated better than at most 'regular' Hilton properties.
We are from Switzerland and like travelling in the Southwest. Last year in July we spent a few days in the Las Vegas Hilton and we liked it very much. I would know nothing to complain about. Service was good and the price as well. The only thing was the way to the strip: When it's really hot, it seems to be a long way to walk. I hope this hotel keeps up its standard. - We'll be back in Las Vegas in September!
It just might be that it will revert to its old name International Hotel and they will bring back Elvis to pack the guests in.
YESCO should be happy.
Maybe Willard Whyte will take it back over? I could see it having the 'Whyte House' name on it soon :)
hey ,you know the old saying around town.when you stay at the hilton,you stay at the hilton.too far off of the strip.
The Hilton has some of the best Rock Shows in the Showroom. Knight of Guitars was Incredible. The Jimmy Hendrix tribute show was amazing. I hope they make it. This property is older, however as with the Tropicana, its a great structure and the monorail is not an asset to anyone in its present configuration.
meh, they should never have closed the star trek experience, that brought walk-in tourists from other hotels, why would you go to the hilton now other than if you have a convention next door
They shot themselves in the foot when they got rid of the Startrek Experience. It was a must see in vegas and now there really isnt any reason to go to the Las Vegas Hilton any longer.
Maybe, MAYBE, 30 years ago, the Vegas Hilton used to be a No 1 spot in Vegas. It was before the area of Mirage, MGM, Venetian and all the other super destination resorts on the Strip. Location is everything in this business, and as we see, just from the conventions solely a casino can't be profitable. It takes regular tourists as well, and not all of them are willing to pay the de-touring taxi-taps on their way back to the hotel every day, and not all of them want to rent a car just to get back to their hotel after a night of heavy action on the Strip.
I stayed there in 2009 when I found an absolutely unresistible offer online. 45 dollars per night, 2 nights minimum, plus, i received a 25 dollar free play coupon, plus, a 5 dollar dining credit if I wave the linen service. I booked a room that had 2 beds so 1 night I slept in 1 bed and the other night I used the other bed. That way I had 2x fresh linen and still received my 5 dollar dining comp. And, by the way, the 25 dollar free play coupon won. Right on the first roll of dice, I won by 7 :)
It certanly used to be classy place, with Elvis Presley appearing, and super high rollers playing there baccarat. The especially installed wheelchair elevator to the today rather small looking high limit slot area where there used to be the high limit baccarat pit reminds of the good old days with Larry Flint giving action in there....
Everything is nice about this place, even the working girls lining up at the sports bar every given night look sexy (but are WAY TOO EXPENSIVE!!!!) but the days are over. If they keep on losing money, perhaps it's better to shut its doors and take it down. Nothing lasts forever in Las Vegas, as we know.
From Switzerland