Hilton Finalizes Spin-Off Businesses
Jackie Reddy January 06, 2017
Once operating as part of Hilton Worldwide Holdings, Hilton Grand Vacations and Park Hotels & Resorts are now separate business entities.
This week, Hilton Worldwide Holdings finalized the spin-off Hilton Grand Vacations, its timeshare business, and Park Hotels & Resorts, its lodging real estate investment trust (REIT). From now on, these businesses will operate as separate and independent entities.
Skift reports that Hilton Worldwide will keep its executive structure intact, with Christopher J. Nassetta as president and CEO. Park Hotels & Resorts will be led by president and CEO Thomas J. Baltimore, Jr. while Mark Wang heads up Hilton Grand Vacations as president and CEO.
Hilton Worldwide is comprised of 13 brands while Park Hotels & Resorts is comprised of 67 properties. Hilton Grand Vacations encompasses 46 different resorts.
In a statement, as quoted by the outlet, Hilton CEO Nassetta said, “The new Hilton is a fee-based, capital efficient, and resilient business with tremendous growth potential around the world. We believe this will result in opportunities for our team members and meaningful returns for our hotel owners and shareholders.”
Speaking during an investor day last month, he also explained the impetus behind the creation of these spin-offs.
“We want to have each of these businesses be able to have dedicated shareholder bases. They’re very different businesses […] but people want to have the opportunity to self-select,” he said.
Nassetta added that these businesses “create capital market efficiency and tax efficiency opportunities. And as a consequence of how we’re doing it with the tax-free spin and the REIT conversion with the Park assets, we’re creating a tremendous amount of efficiency in that regard.”
[Photo: Shutterstock]
I don't know what this means but I will never stay at one of those HILTON GRAND VACATION places again. I tried one in Las Vegas a few years ago and it was not only odd, but I did not receive Hilton points for my stay. Then, only a few weeks ago, I used the new thing at the top of the Embassy Suites Georgetown in D.C. and again it was odd. I received Hilton points but it was like everyone working there at the desk was on some kind of college internship. I wrote to the Hilton president, suggesting adult supervision at that franchise. Be very careful booking these Vacation places via the Hilton web page. Not everything that is faced can be changed. But nothing can be changed until it is faced. James Baldwin