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Hilton sell hotel division for $5.6 billion
Hilton Group has agreed to sell its hotels division, Hilton International, to Hilton Hotels Corporation for $5.6 billion.
The move, described as a “logical step” by HHC, follows the recent sale by Hilton Group of 16 UK properties for almost $700 million.
Upon completion of the acquisition, Hilton Group will be rebranded as Ladbrokes.
The deal will again unite the Hilton brand in the US with more than 260 Hilton properties in the rest of the world.
HHC initially demerged Hilton International as an independent business in 1964 with HHC retaining exclusive rights to the brand in the US with Hilton International possessing exclusive rights throughout the rest of the world.
Ladbrokes then acquired Hilton International in 1987 and rebranded to Hilton Group.
In 1997, HHC and Hilton Group struck a strategic alliance that included joint marketing programmes, an integrated reservations system and a loyalty scheme. A consistent brand image across the globe also formed part of the agreement while both parties jointly set up luxury brand Conrad.
Hilton Hotels Corporation chairman Stephen Bollenbach said: “This transition represents the final and logical step in a process that began in 1997 with the signing of a strategic alliance between HHC and Hilton International as a global lodging industry.
“Hilton International had an experienced and talented team of professionals with unsurpassed knowledge of international markets. We are excited about the role they and our existing team will play in the future growth and prosperity of our company.”
Hilton International comprises 402 hotels in 80 countries, 226 of which are branded Hilton, 37 Hilton Worldwide Resorts and 139 under the mid-market Scandic brand.
The division contributed $270 million towards Hilton Group’s 2004 profit before finance and tax of $730 million.
Report by Steve Jones
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