After thirty years of operation, the Hilton Sao Paulo, located on Av. Ipiranga 165, will no longer operate as a Hilton hotel. Due to significant changes in the market conditions, and a progressive drop in business to that area of the city, the lease of the property will end. However, all contracts and commitments booked through the end of the year will be honored.
The decision to bring an early termination to the lease, due to expire at the end of 2006, was made in agreement with the property owners, with whom Hilton International has always had a positive and productive relationship.
Hilton International clarified that while the city center, where the Hilton Sao Paulo is located, no longer generates the business to sustain a quality operation, Hilton International's other properties in Brazil are not affected, nor is the company's search for development opportunities in key business cities or leisure destinations within the country. The Hilton Amazon Eco-Lodge is still under development, and two years ago, the company inaugurated the Hilton Sao Paulo Morumbi in the southern region of the city.
In an effort to assist employees, Hilton International is doing everything possible to offer relocation options or support with job search preparation. Given work experience and job skills, 55 team members were successfully transferred to the new property, Hilton Sao Paulo Morumbi. The hotel management is helping the remaining 160 team members with potential transfers to other hotels in the city.
Hilton International (HI), an operating division of the UK based Hilton Group plc, owns the rights to the Hilton brand name throughout the world, with the exception of the USA. HI operates 394 hotels, with some 253 branded Hilton, 47 of which under the Hilton Worldwide Resorts, plus 141 under the mid-market Scandic brand. Under a joint venture agreement, Hilton International and the North American based Hilton Hotels Corporation (HHC) share responsibility for the Conrad brand, which includes 17 hotels in 12 countries