Hilton Group Announces the Sale of 15 UK Hotels and Plans to Sell Further Properties

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Hilton Group Announces the Sale of 15 UK Hotels and Plans to Sell Further Properties
Hilton Group Announces the Sale of 15 UK Hotels and Plans to Sell Further Properties
Category: Worldwide This is a press release selected by our editorial committee and published online for free on 2005-11-22 Hilton Group plc today announces the completion of the sale of 15 hotels in the UK to The Managed Hotels Unit Trust, with funding arranged by RBS Group. The purchase price of the hotels is £382.4 million in cash. The final consideration is subject to adjustment to reflect interest rate movements today which are expected to be minor. The hotels are forecast to deliver 2005 EBIT of £27.7 million (2004: £23.6m) and have a net book value of £341.4 million. The company is also in very advanced discussions concerning the sale of the Hilton at Edinburgh Airport to the same party. As a key part of the transaction the hotels will continue to be branded Hilton under long-term management agreements with an initial term of thirty years and two options for 10 years thereafter. The annual income for Hilton from the management contract is expected to be around £5.4 million. Following the high level of market interest in the sale, Hilton International intends to place further hotels on the market with a value in excess of £400m, including the Hilton London Metropole and Hilton Birmingham Metropole. Proceeds of the sale will initially be used to pay down debt, pending any further announcements relating to the ongoing discussions with Hilton Hotels Corporation (HHC). *** Enquiries: Brian Wallace Deputy Group Chief Executive and Finance Director (mobile +44 (0)7974 229299) Alex Pagett Group Corporate Affairs Director (mobile +44 (0)7974 229888) Julian Arlett Head of Investor Relations (mobile +44 (0)7974 229462) Telephone: +44 (0)20 7856 8109 Note to Editors The hotels involved are: - Hilton Aberdeen Treetops - Hilton Basingstoke - Hilton Bristol - Hilton Bromsgrove - Hilton Coventry - Hilton Dartford Bridge - Hilton Dunkeld House - Hilton London Gatwick Airport - Hilton London Olympia - Hilton Newbury Centre - Hilton Newbury North - Hilton Newport - Hilton Southampton - Hilton Strathclyde - Hilton Swindon