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                                  EXHIBIT 99.2

CONTACT:                   JOSEPH MACNOW
                          (201) 587-1000



                                                            VORNADO REALTY TRUST
                                                          Park 80 West, Plaza II
                                                  Saddle Brook, New Jersey 07663



FOR IMMEDIATE RELEASE - SEPTEMBER 25, 1997

               SADDLE BROOK, NEW JERSEY.......VORNADO REALTY TRUST
(NYSE:VNO) today announced that it has acquired a 40% interest in New York
City's Hotel Pennsylvania, which is strategically located on Seventh Avenue
opposite Madison Square Garden. The property was acquired in a joint venture
with Hotel Properties Limited and Planet Hollywood International, Inc. The
venture intends to create a sports-themed hotel and entertainment complex.

              Under the joint venture agreement, Hotel Properties Limited and
Planet Hollywood International, Inc. will have 40% and 20% interests,
respectively. Hotel Properties Limited, a Singapore publicly listed company
co-founded by Ong Beng Seng, has interests primarily in the retail,
entertainment, lodging and leisure industries.

              The joint venture acquired the hotel for approximately $159
million, of which $120 million is newly-issued 5 year financing.

              The Hotel Pennsylvania contains approximately 800,000 square feet
of hotel space with 1,700 rooms and 400,000 square feet of retail and office
space. Vornado will manage the site's retail and office space, and Hotel
Properties will manage the hotel.

              Vornado Realty Trust is a fully-integrated equity real estate
investment trust.


              Certain statements contained herein may constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among others, risks
associated with the timing of and costs associated with property improvements,
financing commitments and general competitive factors and a change in retailer
or consumer acceptance of products and services.


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