|.BEVERLY HILLS, Calif. - Hilton
Hotels Corporation, (NYSE:HLT) today announced it has exchanged contracts
to sell two major UK hotels - the 1054 room Hilton London Metropole and
the 794 room Hilton Birmingham Metropole - to Dr. Edward Wojakovski's family
owned Tonstate for the cash sum of GBP 417 million. The transaction is
expected to complete before year end 2006.
Hilton will retain long-term management contracts on both hotels. These contracts will ensure the representation of the Hilton brand in two of the largest and most impressive hotels in Europe. As part of the deal negotiated by Dr. Wojakovski and the Hilton International real estate team, it was agreed that Tonstate would dedicate the resources necessary to continue renovation programs at each of the properties.
Robert M. La Forgia, Executive Vice President and Chief Financial Officer of Hilton Hotels Corporation, commented on the sale: "We are very pleased to have reached an agreement to sell these key meeting and convention properties to Tonstate, an outstanding owner and partner. We are also pleased that Hilton will continue to manage these properties and be associated with the hotels' dedicated team members, who deliver superior service to our guests.
"With the expected completion of the sale of the two Metropole properties,
our very successful asset sale program will have delivered more than $2
billion in proceeds since early 2005. The hotel transaction market continues
to be vibrant, with a high level of market interest and enthusiasm being
shown for quality hotel assets. Consistent with our strategy to grow the
managed and franchised business and reduce hotel ownership, we intend to
place further hotels on the market; for example, we have recently listed
11 properties across Europe and also announced that we are evaluating alternatives
for the Scandic brand", La Forgia added.
Hilton will use the proceeds from the sale of these hotels to pay down debt.
Hilton was advised by Christie & Co and SJ Berwin. Tonstate was advised by CBRE Hotels and DLA Piper.
About Hilton Hotels Corporation:
Hilton International Operations
Hilton Hotels Corporation
|Also See:||Dubai International Capital Acquires Travelodge, Operator of 291 Hotels in the UK, Ireland and Spain, for £675 million / August 2006|
|Hilton Hotels Corporation Sells Five Canadian Hilton Properties to Westmont Hospitality Group for Approximately CAD $243 million / September 2006|