Hilton Acquires Fee Interest in Land for Hilton Waikoloa Village

BEVERLY HILLS, Calif. | Hilton Hotels Corporation (NYSE:HLT - News) said today that it has completed a transaction with Lanpar/HTL Associates whereby Hilton will acquire the fee interest in the land for the company-owned 1,241-room Hilton Waikoloa Village on Hawaii's Big Island. The purchase price for the 62 acres was $115 million. Hilton had previously leased the land from Lanpar pursuant to a lease expiring in 2061.

"Hawaii and continues to be an extremely vibrant market, with our Oahu and Big Island hotel properties reporting high occupancies and very strong room rates. Our timeshare properties at the Hilton Hawaiian Village and at Waikoloa Beach Resort have also experienced strong sales at premium prices," said Matthew J. Hart, president and chief operating officer of Hilton Hotels Corporation. "Acquiring the land under the Hilton Waikoloa Village enables us to control all aspects of one of our most important and successful hotel assets."

A world-class resort on the Big Island's Kohala Coast, the Hilton Waikoloa Village was first acquired by a foreign investment group and Hilton in 1993, with Hilton managing the property and owning a 13 percent interest. In 2002, Hilton acquired the remaining 87 percent for $155 million in cash and stock. The hotel had opened originally in 1988 and was built at a cost of approximately $400 million. It features 90,000 square feet of meeting space, the 25,000-square-foot Kohala Spa, three swimming pools with waterfalls and water slides, a salt water lagoon with snorkeling and other water activities, access to 36 holes of golf and Dolphin Quest, a unique facility where guests can interact with and learn about dolphins.

In addition to the hotel, Hilton is currently developing and selling 120 two-bedroom timeshare units at Waikoloa, with plans for future development at the location.

Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises approximately 2,300 hotels, resorts and vacation ownership properties. Its portfolio includes many of the world's best known and most highly regarded hotel brands, including Hilton®, Conrad(TM), Doubletree®, Embassy Suites Hotels®, Hampton Inn®, Hampton Inn & Suites®, Hilton Garden Inn®, Hilton Grand Vacations Company® and Homewood Suites® by Hilton.