Hilton Completes Spin-Off Into Three Independent Companies
Thursday, January 5, 2017
Hilton Worldwide Holdings announced yesterday the completion of its spin-offs of Park Hotels & Resorts Inc. and Hilton Grand Vacations. The company now operates three independent, publicly traded companies.
On January 4, 2017, Park Resorts and HGV started their “regular way” trading on the New York Stock Exchange under the ticker symbols “PK” and “HGV,” respectively. As per a previous announcement issued by the company, Hilton effected a 1-for-3 reverse stock split and will still trade with the ticker symbol “HLT” in the NYSE.
Hilton’s portfolio includes 13 distinct brands, which leads the industry in market share premiums. As a result, Hilton has the leading rates of organic net unit growth with low capital requirements.
Park Resorts is headquartered in McLean, Virginia. It is one of the largest lodging real estate investment trusts with 67 premium-branded hotels and resorts featuring more than 35,000 rooms located in leading U.S. locations and international markets with high barriers to entry.
HGV, headquartered in Orlando, Florida, is known within the timeshare community that markets and sells vacation ownership intervals. HGV’s 46 resorts are managed in top leisure and urban destinations in premier markets, including New York City, Orlando, Las Vegas, and the Hawaiian Islands.
“These spin-offs are an important milestone in Hilton’s continued evolution as the world’s most hospitable company,” said Christopher J. Nassetta, president and CEO, Hilton. “The new Hilton is a fee-based, capital efficient, and resilient business with tremendous growth potential around the world. We believe this will result in opportunities for our team members and meaningful returns for our hotel owners and shareholders.”
“Today’s transaction positions Park Hotels & Resorts as the second largest lodging REIT and a key player in the market,” said Thomas J. Baltimore, Jr., chairman, president & CEO, Park Hotels & Resorts. “We believe our size, scale, and high-quality portfolio will enable us to capitalize on meaningful growth opportunities.”
“Hilton Grand Vacations is a premier operator and rapidly growing company in the timeshare industry,” said Mark Wang, president & CEO, Hilton Grand Vacations. “We are focused on adding value for our members, continued net owner growth, and delivering a strong return on our capital efficient business.”
Learn more about Hilton and all of their highly-esteemed brands by visiting their website.