Patriot American, Hilton in Venture

Patriot American Hospitality Inc. will invest about $300 million to acquire, manage and develop Hilton Hotels Corp. properties in key U.S. markets over the next several years, the companies said. Under the deal, Patriot will buy four Hilton Suites hotels, totaling 883 suites, for $104.7 million, and develop about 15 new Hilton Garden Inns. The companies will also develop Hilton Suites in new markets and acquire upscale hotels. The alliance will add about 4,000 rooms to Patriot’s current 10,923 rooms. Patriot, a real estate investment trust based in Dallas, owns the properties and has independent leasing arrangements with hotel operators. Patriot’s stock rose $2.75 to close at $44.25 and Beverly Hills-based Hilton fell $1.25 to $26. Both trade on the New York Stock Exchange.