Looks like the end of an era for the Hilton. Thought some would be interested. They couldn't even get rid of some of the Star Trek theme yet don't know how they can deal with a whole identity change.
Hilton Worldwide informed the Las Vegas Hilton last week that it plans to end its franchise license agreement with the property on Jan. 1, 2012, forcing the hotel-casino to change its name and loyalty program. The Las Vegas Hilton, now owned by Colony Resorts LVH Acquisitions LLC, has held its current name since 1971. The most recent license agreement, signed in 2009, was set to expire at year's end and allowed either party to terminate the contract anytime after Jan. 1, 2011.
No reason was given for the decision, but the Las Vegas Hilton has struggled since the economic downturn and is located on the north end of the Strip, an area suffering from unfinished projects, empty lots, and the recent closing of the Sahara. Colony Resorts lost $3.3 million in the first quarter of 2011, a bigger loss than the $2 million it dropped in the same quarter of 2010. David Schwartz, directer of the Center of Gaming Research at the University of Nevada, Las Vegas, told the Las Vegas Review-Journal that having to change its name means extra expenses for the Las Vegas Hilton "at a time when it doesn't have much, if any, money to spare."
Sixteen other properties in Las Vegas bear the name of one of Hilton's brands, including Hilton Grand Vacations, Doubletree, Embassy Suites, Homewood Suites, Hampton Inn, and Hilton Garden. Schwartz suggested that the "Hilton might just affiliate with an existing casino, like Cosmopolitan with Marriott. The Tropicana might be a good candidate, as might Treasure Island or even the Stratosphere."
A spokesman for the Las Vegas Hilton said it is in discussions with other hotel brands and expects to form a new partnership before the Jan. 1 deadline. He also did not rule out negotiating a new deal with Hilton Worldwide. The Las Vegas Hilton, once known as the Vegas home of Elvis Presley, was built in 1969 by Kirk Kerkorian and named the International Hotel. It was purchased by Hilton Hotels Corp. in 1970 and renamed the Las Vegas Hilton a year later. Since then, the property has changed ownership several times, most recently in 2004, when Park Place Entertainment sold it to Colony Capital for $280 million.
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