Hilton-Chevron Plan Dropped

Press, Volume C, Issue 29459, 10 March 1961, Page 18

Hilton-Chevron Plan Dropped

(N.Z. Press Association-—Copyright)

SYDNEY. March 9. The Hilton Hotel Corporation. the vast American and international hotel chain, has dropped out of a £32 million expansion scheme in Australia. Previously, it had been announced this plan would involve the building of big tourist hotels in Australia and New Zealand cities, in conjunction with the Chevron group.

In a joint statement today. Hilton Hotels International, Inc., and the Chevron group. Stanhill Consolidated. Ltd., say the recent drastic changes in the Australian economy have materially affected implementation of

their agreement of last April. Under this agreement the Hilton group was committed to supply between 15 and 25 per cent, of the share capital of each new hotel project undertaken. Services Retained

Chevron and Hilton will continue to be closely associated. Stanhill-Chevron having the exclusive use in Australia and New Zealand of Hilton services and the Hilton name.

However, the parties have agreed that at present there is insufficient scope for Hilton equity participation or direct management. They point nut that at no time has Hilton had any financial interest in any of the hotels in the Chevron group. Technical and planning data. Hilton's “carte blanche” credit system and its interhotel reservation system are among the remaining services of the April agreement which are being retained. Names Changed The Chevron hotels in Melbourne and Surfers Paradise will immediately change their names to ChevronHilton Hotel. Melbourne, and Chevron - Hilton Hotel, Surfers Paradise. respectively. Chevron and Hilton plan to review the situation from time to time in light of economic developments.

Mr Stanley Korman, chairman of the Stanhill-Chevron group, said today it was pleasing to note the recent assurance of the Prime Minister, Mr Menzies, that the Government would give special help and promotion to the tourist industry.