Hilton pulls its name from troubled Downtown hotel
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The Hilton Pittsburgh has lost its name.
In the latest blow to the struggling hotel, Hilton Hotels & Resorts announced today that it has terminated its Franchise License Agreement with Shubh Hotels Pittsburgh LLC, the owner of the Downtown hotel.
In a statement, a Hilton spokesman said the decision was made "due to violations of the terms of the Franchise License Agreement." He declined to identify the violations.
"We expect the owner of the hotel to honor all current reservations and will provide further updates as appropriate," the statement said.
The decision to terminate the franchise agreement means that the hotel can no longer bear the Hilton name, which has had a prominent perch at the entrance to the Golden Triangle since 1959, and is no longer recognized as a Hilton property.
It comes less than two weeks after Shubh changed managers at the hotel, dismissing Virginia-based Crescent Hotels & Resorts after a legal battle. It hired Dallas-based Prism Hotels and Resorts to replace the firm.
The Downtown hotel has been beset by financial problems for the last few years, racking up millions of dollars in liens for unpaid bills and taxes. Worked stopped on an exterior addition when the contractor walked off after not being paid. The work recently resumed and Shubh hoped the change of managers would provide a fresh start and turn around the hotel's fortunes.
More details in tomorrow's Pittsburgh Post-Gazette.
First Published September 2, 2010 1:25 pm