Hilton to Spin Off Park Hotels REIT and Timeshare Unit
Hilton Worldwide announced that its board of directors approved the spin-off of a new real-estate investment trust, Park Hotels and Resorts, and its Hilton Grand Vacations timeshare business units.
The hotel chain first announced, in February, plans to separate into three entities. Park Hotels and Resorts will hold most of Hilton’s properties and be the second-largest publicly traded real estate investment trust in the hospitality industry.
“As three independent companies, Hilton, Park Hotels & Resorts, and Hilton Grand Vacations will be well-positioned to capture incremental growth opportunities and capital market efficiencies in their respective business,” said Christopher J. Nassetta, the company’s CEO.
The transactions are scheduled to close on January 3, 2017 at which time Hilton shareholders will receive shares in two new entities, Park Hotels and Resorts and Hilton Grand Vacations. Both Park Hotels and Hilton Grand Vacations will begin regular trading on the New York Stock Exchange the following day.
In addition to approving the spin-offs, the board also approved a one-for-three reverse stock split for Hilton, which will become effective after market close on January 3.
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