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Hilton spinning off real estate, time shares

2016-02-26T193546Z_1_LOP000HVB8P51_RTRMADP_BASEIMAGE-960X540_HILTONWORLDWIDE-REIT

Hilton Worldwide will spin off most of its Real Estate business into a publicly traded REIT, and, separately, spin off its Hilton Grand Vacations timeshare business into a publicly traded company. Bobbi Rebell reports.

Hilton Worldwide making some big moves.

The owner of the iconic Waldorf Astoria hotel will spin off most of its real Estate assets into a real estate investment trust. The REIT will have about seventy properties, in both, the U.S. and abroad.

Keith Bliss of Cuttone and Company:

“They get out of the business of actually managing all those assets, and turn it over to a different company, and it just makes more economic and operational sense.”

Hilton is also spinning off its time share business, Hilton Grand Vacations, into a separate publicly traded company.

Hilton stock has been down heavily over the last twelve months, but got a boost on the news.

The sector has been under pressure in large part because of a drop in business travel, tied to weakness in the energy business.

Patrick Scholes covers Hilton at SunTrust Robinson Humphrey- and says the company is successfully focusing on expansion.

“I have been published as being negative bias on the overall lodging sector since last March. That said, I do have a buy rating on the stock, and I do see it as a relative outperformer. “

Hilton also reported a one percent rise in fourth quarter revenue, helped by higher room rates.

The post Hilton spinning off real estate, time shares appeared first on Billionaires Newswire.



This post first appeared on Billionaires Newswire - Lifestyle & Luxury Tourism, please read the originial post: here

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