Conrad Hilton May Buy Hotels In N.Z.

Press, Volume XCIX, Issue 29173, 6 April 1960, Page 25

Conrad Hilton May Buy Hotels In N.Z.

(N.Z, Press Association—Copyright)

HONOLULU, April 4. The international hotel operator, Mr Conrad Hilton, may enter the hotel business in New Zealand under the terms of a £26 million deal with the Australian Chevron Hotel group, United Press International reported today. Mr Hilton, president of the Hilton Hotel Corporation, in a joint statement with Mr Stanley Korman, chairman of the Chevron group, said Hiltons would operate all Chevron hotels in Australia from August 1. The statement said £lB million would be spent in the next three years to improve existing Chevron hotels in Sydney, Melbourne, and Surfers’ Paradise, or for new hotels in Brisbane, Canberra, Newcastle, Perth, and Adelaide. Mr Hilton envisaged expansion in New Zealand and promised American-style hotel service at Chevron hotels. United Press International reported. With the addition of the Australian chain, the Hilton Corporation now operates 50 hotels throughout the world, having on ever y continent The Chevron hotels to be operated by Hilton number five —the four already in operation and the new Kings Cross in Sydney, British United Press said.

The new. Melbourne Hotel, to be built on' property adjoining the present Chevron Hotel there, would cost at least £700,000. New companies would be formed, he said, to construct the hotels, with Hilton . then taking over the operation. Stanhill Consolidated, Ltd., which controls the Chevron group, is planning the building of a chain of motels throughout Australia. Through its subsidiary companies it has wide interests in hire purchase, textiles, land subdivision, and New Zealand iron sand deposits.

The Stanhill Consolidated secretary (Mr J. C. Carrodus) said in Melbourne this morning that there was no question of Mr Hilton’s group making a “takeover’’ bid for Chevron interests. He said: “Under the agreement. as I understand it, Mr Hilton’s interests will be invited by us to put very small amounts of equity capital into new hotels we may build. We would expect this amount of capital to be only between 15 and 25 per cent, of the total in each case.”

In other parts of the world, local companies have put up the capital, and Hilton’s have provided management techniques perfected over years of hotelkeeping. The group uses the minimum of American staff.