The owners of the Las Vegas Hilton have signed a new six-year licensing agreement with Hilton Hotels Corp. for continued use of the brand, access to the Hilton’s reservation system and the hotel chain’s customer reward card program.
The deal is set to expire on Dec. 31, 2015, but may be terminated by either party after Jan. 1, 2011, according to a Monday filing with the Securities and Exchange Commission.
The Las Vegas Hilton has to pay Hilton Hotels an annual fee of 1 percent of the property’s food and beverage revenues and 1.25 percent of its room revenues.
An additional 2 percent of the room revenues will be collected to fund the Hilton hotel’s advertising and marketing programs, and for maintaining the reservation system.
The Las Vegas Hilton has carried the brand since 1971, when it was renamed from the International Hotel.
The property is currently 60 percent owned by Los Angeles-based Colony Capital with Whitehall Street Real Estate Funds controlling the other 40 percent.