Hilton (HLT) to Spin Off Timeshares, Real Estate

The spinoff of the businesses will be completed in 2016

Hilton Worldwide Holdings Inc (HLT) announced it will be spinning off its timeshares and real estate businesses.

Hilton, HLTChristopher Nassetta, President and CEO of Hilton, said that the spinoffs would occur later in 2016. The timeshare business will be made a publicly traded company and the real estate business will be a publicly traded REIT.

The Hilton CEO said that spinning off the two businesses would allow it to enhance shareholder value over the long term. The company expects the spinoffs to be completed by the end of 2016 and said they won’t be subject to a shareholder vote.

“We think this (the spinoffs) makes sense by simplifying the businesses and should result in a higher net valuation multiple,” Joseph Greff, a J.P.Morgan analyst, told Reuters.

HLT shares were up 1% as of Friday afternoon.

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