Hilton to Pay $159,000 to Owner of Hotel

Hilton Hotels Corp. said it was ordered to pay $159,000 in damages stemming from alleged violations of an exclusivity clause in its contract with a San Antonio Hilton, which had sought as much as $200 million in the case.

The ruling came after a hearing before an arbitration panel earlier this year in Washington.

The Palacio Hilton’s owner had been seeking the large damage award, partly stemming from a non-compete clause in its contract with Hilton and partly stemming from allegations of mismanagement.

An attorney for the hotel’s owners said that they may still pursue claims of mismanagement against Hilton when they receive information from the company.

Under the ruling, Hilton also was ordered to end its ties with a proposed Embassy Suites--one of the Hilton brands--hotel planned near the Palacio.

Hilton was also ordered to tell Palacio’s owners how it used customer information it received through its operation of the hotel.

A Hilton spokeswoman confirmed the details of the settlement, but had no further comment.