WASHINGTON — Hilton Worldwide, which moved its headquarters from Beverly Hills to McLean, Virginia in 2009, will split into three separately traded companies, one of them based in Florida.
Hilton will spin off the bulk of the real estate it owns into a real estate investment trust (REIT). Hilton owns just a fraction of the 4,600 hotels it operates. The REIT will include about 70 properties.
Hilton Worldwide will also spin off its Hilton Grand Vacations timeshare business as a separate company, though it will retain exclusive licensing agreements with Hilton to market, sell and operate resorts. The timeshare business will include about 50 club resorts in the U.S. and Europe.
Hilton Worldwide will remain headquartered in McLean, according to Hilton spokesman Chis Brooks. The timeshare business will be headquartered in Orlando, where the bulk of its operations are already based. The operational headquarters for the REIT has not yet been determined, Brooks tells WTOP.
“The transactions we announce today will result in three pure-play companies, enabling dedicated management teams to fully activate their respective businesses, taking advantage of both organic and inorganic growth opportunities as well as capital market and tax efficiencies,” Hilton Chief Executive Christopher Nassetta said in a statement.
Hilton says it expects the split into three companies to be completed by the end of this year. It says no shareholder vote is required, and existing shareholders will receive shares in the two new publicly traded companies.