Atlanta Center Limited v. Hilton Hotels Corporation

I

In 1973, Hilton Hotels Corporation entered into a contract with the owners of a hotel in downtown Atlanta, Georgia, where by Hilton agreed to manage the hotel for a period of thirty years. The management agreement contained a restrictive covenant prohibiting Hilton from operating other hotels within a ten-mile radius of the downtown hotel. At the time, Hilton was operating a 389-room hotel on a ten-acre site it owned near the Hartsfield International Airport, a commercial airport that is within ten miles of the downtown hotel. The restrictive covenant in the management agreement did not…