Hilton plans two Disney World hotels

Hilton Hotels
Corporation plans to build a 1,000-room
Hilton and a 500-room Waldorf=Astoria at Bonnet Creek, a resort
development adjacent to the Walt Disney World Resort. Construction of
the project is currently in the design phase and is on schedule to break
ground by the end of 2006 and to open in the summer of 2009.

GEM Realty Capital, Inc., with Merrill Lynch Global Principal
Investments and another private investment company, will partner with
Bonnet Creek Venture, Ltd. and Hilton Hotels Corporation to develop and
own the resort. Bonnet Creek Venture, Ltd., a joint venture between
Brooksville Development Corporation and the estate of the original owner
of the property, will oversee construction and ensure delivery of the
project. The properties will be managed by Hilton Hotels Corporation.

In January 2006, The Waldorf=Astoria Collection of luxury hotels was
announced to extend the cachet of New York’s legendary Waldorf=Astoria
hotel. As one of America’s first ‘grand hotels’ that combines luxurious
elegance with a myriad of amenities and services, the Waldorf=Astoria
has been renowned for over a century. The Waldorf=Astoria Bonnet Creek
will be the first ground-up Waldorf=Astoria hotel to be built since the
original in New York, and will feature many of the signature food and
beverage establishments that have made the Waldorf=Astoria popular,
including Peacock Alley, the Bull & Bear, Sir Harry’s Bar, and Oscar’s.
The newly developed hotel’s decor will include Art Deco design and
original art work.

The Hilton and Waldorf-Astoria Hotels will include a Rees Jones designed
golf course, expansive swimming pools that overlook the golf course, and
a state-of-the-art spa and fitness center. Each hotel will also feature
upscale and specialty restaurants, a pool bar and outdoor grill, a lobby
lounge and a sports bar.

“Hilton Hotels Corporation is thrilled to announce that two elite new
hotels, including the first newly built Waldorf=Astoria since the
original in New York, are being planned for the Bonnet Creek development
next to Walt Disney World Resort,” said Matthew J. Hart, president and
chief operating officer, Hilton Hotels Corporation. “With this
outstanding location, we have an unbeatable opportunity to increase our
share of this coveted market with two distinctive upscale hotels—one
under the renowned Hilton name and one an ultra-luxury Waldorf=Astoria.”


“We are excited to invest in this unique opportunity and partner with
talented and experienced industry leaders that include Hilton, Merrill
Lynch, and BCV,” said Norman S. Geller, senior managing partner of GEM
Realty Capital. “Our private/public investment platform served as the
foundation to complete this complex transaction.”

The two hotels announced today will have a combined total of 145,000
square feet of meeting space, of which 115,000 square feet will be
located in a conference facility. The largest ballroom will be 36,000
square feet. Each hotel will have its own meeting space: 25,000 square
feet in the Hilton and 11,000 square feet in the Waldorf=Astoria. Each
hotel will feature multiple food and beverage facilities. The hotels
will share a 25,000 square foot spa and fitness center and 5,000 square
feet of specialty retail. The Rees Jones designed golf course will be
completed prior to the opening of the project.