AC Hilton has lost the right to use Hilton name.

[CennPennTraveler]

Don't call it Atlantic City Hilton Casino Resort anymore; casino has lost the right to use Hilton name

ATLANTIC CITY — The financially troubled Atlantic City Hilton Casino Resort has lost the right to use the iconic Hilton name that has graced the property for the past 15 years. Already, the Hilton has started calling itself “ACH” in its promotional literature and on its website.

John Forrest Ales, a spokesman for Hilton Hotels & Resorts, confirmed Thursday that the hotel chain has ended a licensing agreement that allowed the Atlantic City casino to use the name.

“It’s not recognized as a Hilton,” he said. “If the agreement is terminated, the property can no longer be part of the Hilton brand.”

Ales declined to say why the licensing agreement was ended, but noted that the Hilton chain wants to “protect our name and identity.”

For the time being, the Hilton name remains on the casino hotel, its table games and slot machines, but it will have to come off eventually. The timing remains unclear.

“It’s certainly something that is expected to happen,” Ales said.

Casino spokeswoman Tina Belluscio declined to comment. Lisa Baker, a spokeswoman for the Hilton’s owner, Colony Capital LLC, also declined to comment.

Calls to the Hilton on Thursday were answered with the greeting “ACH.” The Hilton’s website and the casino’s promotional literature that is mailed to gamblers now bear the ACH name.

The Hilton, the biggest money loser among Atlantic City’s 11 casinos, is going through the name change at the same time that it is trying to find a new owner. Lenders forced the property’s sale this year after the Hilton defaulted on its mortgage, but a buyer has not yet emerged. International investment bank Houlihan Lokey has been hired to sell the Boardwalk casino while a foreclosure fight between the Hilton and its lenders has been put on hold.

In 2010, the Hilton suffered an $18.9 million operating loss, more than any other Atlantic City casino. Its $7.3 million operating loss in the first quarter of this year also made it the industry’s worst performer.

The Hilton, Atlantic City’s smallest casino, has been through a succession of name changes and operators since it first opened in 1980 as the Golden Nugget, then owned by Las Vegas gaming mogul Steve Wynn. The revolving door of ownership began in 1987 after Wynn sold the casino to Bally Manufacturing Corp. for $440 million.

Over the years, the casino has alternately been known as Bally’s Grand, The Grand and then finally the Hilton starting in 1996, when Hilton Hotels Corp. took ownership.

Hilton Hotels spun off its gaming division into a new company on Dec. 31, 1998. The Hilton’s successor company agreed to sell the Atlantic City casino to Colony Capital in 2004 for $1.24 billion as part of a four-casino deal in New Jersey, Mississippi and Indiana. Despite the ownership switch to Colony, the Hilton name remained on the casino through the licensing agreement with the hotel chain.

Barring a sale or settlement with lenders, the Hilton could end up the same way as its former sister property, Resorts Casino Hotel. Lenders took control of Resorts from Colony Capital in 2009 after the casino defaulted on its mortgage. Resorts was sold for $31.5 million in December to a group headed by Atlantic City gaming executive Dennis Gomes and New York real estate magnate Morris Bailey.

Colony Capital is a private real estate investment firm based in California. Colony also owns the Las Vegas Hilton casino hotel, but is losing the right to use the Hilton name at that property, too. Colony disclosed this week in a federal securities filing that the Hilton hotel chain intends to terminate the licensing agreement in Las Vegas beginning Jan. 1, 2012.

Ales noted that the Atlantic City licensing agreement ended earlier this year, but he could not say exactly when. Hilton’s decision to terminate the Las Vegas agreement was not related to Atlantic City, he said.

Contact Donald Wittkowski:

609-272-7258

DWittkowski@pressofac.com

[PAman]

I dont know how the AC Hilton, oops ACH lasted this long with using the Hilton name. These franchises especially Marriott, Wyndham and others are not into the gaming end of things and they see profits margins drop when you start comping rooms. When property owners buy into a franchise name they agree to pay a percentage of income to keep that name, whether it is a one time a year fee or other arrangements any losing property will eventually lose the support of the franchise name.

You know I don't understand it the ACH property is in a good position, it is a small property with good size rooms and a decent size casino. I hope someone comes in and saves the property because it is one of my favorite places in AC to stay and play.

Paman

[amberde]

That's a bummer. Sorry for those of you who like to stay and play there. Hopefully it will all get worked out.

Amber

[Wawava]

Sad to hear this...I have a friend that works there. i hate thinking about all those people that could lose their jobs.

[Oakley]

HiltonAC was my "home" casino for about nine months in 2006. I finally gave up on them because of service related to the hotel and restaurants. But also because the casino itself was dirty and I had an issue with casino security that wasn't handled well. It's definitely small -- which is OK if you're staying just one night.

I haven't played there in at least four years. Maybe I'll check it out sometime -- I've heard there are some incentives for new or "inactive" players and I've certainly been inactive for quite a while.

[kdk]

Interesting. I saw this week the same about the Las Vegas Hilton too. They announced earlier this week that they will no longer be the Hilton at the end of this year.

[PAman]

Booked my room for next week (July 12 to 15) for 3 nights ACH. Our plans went from going to AC to Vegas back to AC, the draw of the Jersey shore was just to much. Arrive a few days before the Hilton to stay around other shore points then off to AC for a few days.

Paman

[weezie]

ACH is one of my favorite places to play in AC. They've done a really nice job cleaning up the floor and adding the latest brand new games. I've also done really well there most of the time.

[Lucy]

I also like ACH. Prior to Borgata, I stayed there regularly and never had a problem with their rooms, always got an upgrade when we asked for one, and both DH and I had some of our best wins there. I wasn't too thrilled with the change to their gaming floor back when they first did it, but would probably feel more at home again now. I like that they are directly on the beach. Their cafe for breakfast was always very good, although I will say that their buffet was at the very bottom of my list. Also, Helen, the check-in greeter, is a gem ... would always make me smile.

[PAman]

I think if more people would look at the Hilton, oops ACH they would want to give the place a try in the future. I have stayed there since around 1998 and have never had a bad experience. I am not a picky person but I do have some standards when it comes to cleanliness and service. This is what I do for a living and I can spot things that the normal visitor would never even think or consider about the operations. Can the rooms stand for an upgrade, yes but they are in better shape than most of the other AC properties. They offer what we want a coffee maker, refrigerator, no fee, clean pool (indoors) with a connecting large sun deck, a short walk from room to boardwalk and a right size casino. It may not be the largest gaming floor in AC but I like the selection and they do pay pretty good.

As for the buffet some like it some don't and I can understand to some extent. In my opinion they have the best peel and eat shrimp on the boardwalk, good selection of seafood, carving station and the best baked chicken I ever ate in my life. Just that I will gladly pay $18.00.

As for Helen I think we discussed this before. Name me a place that has a host at the chek in desk who knows your name and it doesnt matter to her whether your in VIP or just the run of mill guest. She asks for your name and looks at her board and will confirm the reservation. I had a great conversation with her last year and she really cares about her job and the operation.

I hope some try ACH again and make it a regular stop while they are in AC.

Paman