Hilton Group plc signs agreement for the sale of its hotel division to Hilton Hotels Corporation
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Hilton Group plc signs agreement for the sale of its hotel division to Hilton Hotels Corporation
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Category: Worldwide
This is a press release selected by our editorial committee and published online for free on 2005-12-30
Hilton Group plc announces that it has today signed a conditional agreement for the sale of its
hotels and leisure division, Hilton International, to Hilton Hotels Corporation (“HHC”) for a cash
consideration of approximately £3.3 billion which, when added to the proceeds of the recent sale
of 16 UK Hilton International hotels, realises a total of approximately £3.7 billion for its hotels and
related assets.
Upon completion, it is planned that Hilton Group plc will be renamed Ladbrokes plc. Sir Ian
Robinson will continue as Chairman, supported by the existing Non Executive Directors, other
than Stephen Bollenbach who has resigned as a director. Christopher Bell will become the Chief
Executive and John O’Reilly and Alan Ross will join the Board as Executive Directors with effect
from Completion. Rosemary Thorne has been appointed as Finance Director with effect from
Completion.
It is expected that a substantial amount of cash will be returned to shareholders early in the
second quarter of 2006 following a review of the appropriate capital structure for the new
Ladbrokes plc.
Commenting on the disposal, Sir Ian Robinson, Hilton Group Chairman said:
"We believe this transaction delivers significant shareholder value. The Board is fully committed
to Ladbrokes, which it believes is a strong and valuable business which will be well placed to
deliver growth and good returns."
Stephen Bollenbach, Chairman of Hilton Hotels Corporation, commented:
“This transaction represents the final and logical step in a process that began in 1997 with the
signing of a strategic alliance between HHC and Hilton International as a global lodging industry
leader. Hilton International has an experienced and talented team of professionals with
unsurpassed knowledge of international markets, and we are excited about the role they and our
existing team will play in the future growth and prosperity of our company. ”
David Michels, Chief Executive of Hilton Group plc, said:
“This is a good deal for our shareholders and will offer new opportunities for the 70,000
employees currently working in Hilton International around the globe. I am very proud of the
Hilton brand, which has consistently been acknowledged as one of the world’s leading brands. I
fully expect the enlarged company to grow and our customers can look forward to enjoying even
more opportunities as a result of the strengths of the unified businesses.”
Christopher Bell, Chief Executive of new Ladbrokes plc, said:
"Ladbrokes has a clear business strategy that has delivered strong results in recent years and
leaves us well placed to prosper as a stand alone company. Our key assets - brand leadership,
highly experienced management and an ability to innovate put us in a strong position to succeed
in the international betting and gaming market place."
Following completion (expected to be in the first quarter of 2006), Ian Carter (Chief Executive of
Hilton International) will take up the role of Executive Vice President and CEO of Hilton
International at HHC. In addition, at HHC’s request, David Michels and Brian Wallace have
agreed to transfer to the enlarged company to assist in the transition process.
This summary should be read in conjunction with the full text of this announcement.
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