Hilton Hotels purchases Promus

BEVERLY HILLS, Calif. -- Hilton Hotels purchased Memphis-based Promus Hotel Corp. for about $4 billion in cash and stock. Promus, with about 1,400 hotels, owns and franchises several brands, including Doubletree, Embassy Suites, Hampton Inn and Red Lion.

The deal, expected to close by the end of the year, will result in a company with more than 1,700 hotels and nearly 300,000 rooms. The firm's headquarters will be in Beverly Hills, Calif., with a presence maintained in Memphis.

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