Hilton Directors Okay Spin-Offs

MCLEAN, VA—Hilton Worldwide Holdings said Monday that its board of directors had approved the spin-offs of a portfolio of its owned real estate and its timeshare business. The spin-offs are expected to be finalized on Jan. 3, 2017, with the two spin-offs—Park Hotels & Resorts Inc. and Hilton Grand Vacations Inc.—beginning regular trading on the New York Stock Exchange the following day.

“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,” says Christopher J. Nassetta, Hilton Worldwide's president and CEO. “With the appropriate leadership, strategic vision and capital structures now in place at both Park and HGV, I am confident that each business will enhance long-term value for its respective shareholders.”

Following completion of the spin-offs, Nassetta will continue to lead Hilton Worldwide. Park has named Thomas J. Baltimore Jr. as its president and CEO; Baltimore will also serve on Park's board. Mark Wang, EVP of Hilton and president of Hilton Grand Vacations since March 2008, will serve as president and CEO of the HGV spin-off, and will also serve on its board.

Hilton Worldwide's board has approved a distribution of one share of Park common stock for each five shares of Hilton Worldwide common stock and one share of HGV common stock for each 10 shares of Hilton Worldwide common stock held as of 5 p.m., Eastern Time on Dec. 15, the record date for the distribution. No fractional shares of Park or HGV common stock will be issued. Instead, the distribution agent will aggregate fractional shares of Park and HGV common stock and sell the whole shares in the open market.

This past February, Hilton Worldwide announced plans for the two spin-offs, with Park slated to operate as a REIT. It will include approximately 70 properties and 35,000 rooms, forming what Hilton Worldwide says is one of the largest and most geographically diversified publicly traded lodging REITs. Its portfolio will encompass luxury and upper upscale assets in key urban and convention markets, top resort destinations, select international regions and strategic airport locations, according to Hilton Worldwide.

For its part, HGV will manage nearly 50 club resorts domestically and in Europe. It will have an exclusive, long-term license agreement with Hilton Worldwide to market, sell and operate resorts under the Hilton Grand Vacations brand.

MCLEAN, VA—Hilton Worldwide Holdings said Monday that its board of directors had approved the spin-offs of a portfolio of its owned real estate and its timeshare business. The spin-offs are expected to be finalized on Jan. 3, 2017, with the two spin-offs—Park Hotels & Resorts Inc. and Hilton Grand Vacations Inc.—beginning regular trading on the New York Stock Exchange the following day.

“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,” says Christopher J. Nassetta, Hilton Worldwide's president and CEO. “With the appropriate leadership, strategic vision and capital structures now in place at both Park and HGV, I am confident that each business will enhance long-term value for its respective shareholders.”

Following completion of the spin-offs, Nassetta will continue to lead Hilton Worldwide. Park has named Thomas J. Baltimore Jr. as its president and CEO; Baltimore will also serve on Park's board. Mark Wang, EVP of Hilton and president of Hilton Grand Vacations since March 2008, will serve as president and CEO of the HGV spin-off, and will also serve on its board.

Hilton Worldwide's board has approved a distribution of one share of Park common stock for each five shares of Hilton Worldwide common stock and one share of HGV common stock for each 10 shares of Hilton Worldwide common stock held as of 5 p.m., Eastern Time on Dec. 15, the record date for the distribution. No fractional shares of Park or HGV common stock will be issued. Instead, the distribution agent will aggregate fractional shares of Park and HGV common stock and sell the whole shares in the open market.

This past February, Hilton Worldwide announced plans for the two spin-offs, with Park slated to operate as a REIT. It will include approximately 70 properties and 35,000 rooms, forming what Hilton Worldwide says is one of the largest and most geographically diversified publicly traded lodging REITs. Its portfolio will encompass luxury and upper upscale assets in key urban and convention markets, top resort destinations, select international regions and strategic airport locations, according to Hilton Worldwide.

For its part, HGV will manage nearly 50 club resorts domestically and in Europe. It will have an exclusive, long-term license agreement with Hilton Worldwide to market, sell and operate resorts under the Hilton Grand Vacations brand.