Hilton Worldwide to Become Separate from Hilton Grand Vacations
Monday, February 29, 2016
Hilton Worldwide announced plans for spinning off its timeshare business, Hilton Grand Vacations (HGV), as a separate publicly traded company. Hilton Worldwide is also turning the majority of its real estate business into a publicly traded real estate investment trust (REIT). This will make it the largest and most geographically diversified publicly traded lodging REIT.
Hilton plans to have the REIT maintain a high quality portfolio of real estate including 70 properties and 35,000 rooms. Hilton also expects HGV to manage nearly 50 resorts throughout the United States and Europe. HGV will also have an exclusive, long-term license agreement with Hilton Worldwide to market, sell and operate resorts under the HGV brand.
“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.”
To learn more about the changes Hilton Worldwide is making, visit their website.