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.
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