Eight Additional Hotels Identified for Sale
BEVERLY HILLS, Calif. - July 25, 2005--Summarizing its successful efforts to sell selected hotel assets at attractive prices, Hilton Hotels Corporation (NYSE:HLT) said today that from May-July 2005 it completed the sale of 11 properties for a combined $416 million. Net proceeds after property level debt repayment, minority partner distributions, selling costs and income taxes totaled approximately $335 million. All properties are remaining in the Hilton system either through long-term franchise or management agreements.
The transactions, each of which has been previously and separately announced, are as follows:
"One of our stated objectives going into 2005 was to take advantage of the favorable markets and sell certain hotel assets -- in the process obtaining attractive prices and retaining the properties within the Hilton Family of Brands -- and we have delivered very successfully thus far," said Robert M. La Forgia, senior vice president and chief financial officer of Hilton Hotels Corporation. "By completing these transactions we have made significant progress toward our strategy of achieving even greater balance in our company between income derived from real estate ownership and income from management and franchise fees. The buyers are well-known hotel owners with whom we have outstanding relationships, and we look forward to working with them closely in the years ahead."
La Forgia noted that the sale of the Palmer House Hilton in Chicago is proceeding on schedule and is expected to be completed in the third quarter 2005 with Hilton continuing to manage the hotel.
Hilton further announced its intention to sell an additional eight properties and has engaged brokers to conduct a competitive bidding process for each:
Hilton Hotels Corporation is recognized internationally as a preeminent
hospitality company. The company develops, owns, manages or franchises
approximately 2,300 hotels, resorts and vacation ownership properties.
Its portfolio includes many of the world's best known and most highly regarded
hotel brands, including Hilton(R), Conrad(R), Doubletree(R), Embassy Suites
Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton Garden Inn(R),
Hilton Grand Vacations Company(R) and Homewood Suites by Hilton(R).
Hilton Hotels Corporation
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