Hilton Hotels Corporation to explore alternatives for Scandic Brand; Hilton expects to list 10 hotels for sale in Europe
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Hilton Hotels Corporation to explore alternatives for Scandic Brand; Hilton expects to list 10 hotels for sale in Europe
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Category: Worldwide
This is a press release selected by our editorial committee and published online for free on 2006-08-11
Hilton Hotels Corporation (NYSE:HLT) said today that it is exploring strategic alternatives for the company's Scandic brand of hotels, including the possible sale of all or part of the business. The company acquired the Scandic brand as part of its recent acquisition of the lodging assets of Hilton Group plc. Citigroup Global Markets Limited has been retained to advise Hilton.
Scandic, a prominent and respected brand name located primarily in Sweden, Norway, Finland and Denmark, includes 130 hotels and approximately 23,000 rooms. Of the 130 hotels, 120 are leased properties, six are franchised, three are managed and Hilton owns one.
Separately, Hilton International (HI), a wholly owned subsidiary of Hilton Hotels Corporation, expects to list ten hotels for sale in Europe by the end of September. These properties are in Belgium, France, Germany, Luxembourg, Spain and Switzerland. Banc of America Securities Limited has been appointed to advise Hilton on this project.
Additionally, Hilton International is in various stages of evaluation and negotiation on a number of other potential sale transactions outside the United States.
Robert M. La Forgia, Chief Financial Officer for Hilton Hotels Corporation (HHC), commented: "Hilton's objective on asset sales is to support our stated strategy of generating a higher proportion of future earnings from managing and franchising hotels and less from hotel ownership. Any future sale of assets is a continuation of a process that began in early 2005. Since that time, HHC has sold over $1.3 billion in assets, and HI about $700 million."
The expected timing for completion of any evaluation or sale process cannot be confirmed at this early stage in the process. The company confirms that any intended sale would be subject to completion of all required approvals, including information and consultation proceedings with works councils, trade unions and employee representatives.
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