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Hotel deal would unite Hilton and Doubletree
Thursday, September 02, 1999 By Dan Fitzpatrick, Post-Gazette Staff Writer
Hilton Hotels Corp. and Promus Hotel Corp. may join forces creating a company that would hold the keys to more Downtown Pittsburgh hotel rooms than any other brand.
Even so, local hotel observers expect that such a deal -- which both firms yesterday confirmed they are considering -- would bring few changes to the 711-room Pittsburgh Hilton & Towers or the 618-room Doubletree Hotel Pittsburgh, which is managed but not owned by Promus.
"We think it will strengthen our position" as a large, upscale hotel, said Rod Marques , who oversees the Doubletree for property owner Forest City Enterprises of Cleveland.
Beverly Hills, Calif.-based Hilton is offering to pay $2.4 billion for Promus, a Memphis-based company that manages, owns or lends its name to 1,400 Doubletree, Red Lion, Hampton Inn and Homewood Suites hotels.
Having the city's two largest hotels under one umbrella could make it easier to attract large groups and visitors, said Greater Pittsburgh Convention & Visitors Bureau Executive Vice President Bob Imperata, who would like Hilton and Promus to market their properties jointly as one package.
Most observers, though, expect the combined company to keep the Hilton and the Doubletree as separate flags. "I can't imagine Hilton would be buying Promus to shut down the Doubletree brand," said Gordon Seaman, the general manager of the Sheraton Hotel Station Square. Seaman works for White Plains, New York-based Starwood Hotels & Resorts Worldwide, which also manages the 551-room Westin William Penn.
The Doubletree, located on Penn Avenue, consistently posts occupancy rates higher than 70 percent.
Hilton owns the Downtown Hilton, near The Point. That property is one of 10 Hilton-owned hotels nationwide.
Locally, the Hilton and the Doubletree hotels sit atop a flat hospitality market, with overall city occupancy rates stuck in the mid-60 percent range. To improve its standing, the market desperately needs an expanded David L. Lawrence Convention Center, Imperata said. Those plans are underway. As part of the expanded convention center, there may be a new hotel, too.
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