Hilton Worldwide has announced plans to spin off the bulk of its real estate business into a publicly traded real estate investment trust (REIT) along with its timeshare business, Hilton Grand Vacations (HGV), as separately publicly traded companies. The new REIT will include approximately 70 properties and 35,000 rooms, forming one of the largest and most geographically diversified publicly traded lodging REITs. Hilton Worldwide expects the newly formed timeshare company to manage nearly 50 club resorts in the United States and Europe and have exclusive rights to sell and operate resorts under the Hilton Grand Vacations brand. The company intends to file statements with the Securities and Exchange Commission (SEC) during the second quarter and to complete both spin-offs by the end of the year. Deutsche Bank Securities Inc. and Goldman, Sachs & Co. are acting as financial advisors to the Company.
“The transactions we announced today will result in three pure-play companies, enabling dedicated management teams to fully activate their respective businesses, taking advantage of both organic and inorganic growth opportunities as well as capital market and tax efficiencies,” said Christopher J. Nassetta, president & CEO of Hilton Worldwide. “We intend to have the appropriate leadership, strategies and capital structures in place to set up all three companies for further success.”
