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Hilton Plans REIT And Spin Off Of Timeshare Business

National Hotel

Hilton Worldwide has announced plans to spin off the bulk of its real estate assets into a publicly traded REIT, and also announced plans to spin its timeshare business into its own publicly traded company.

The new REIT will include roughly 70 properties and 70,000 rooms, quickly positioning itself as one of the largest publicly traded lodging REITs. The portfolio will include luxury and upscale assets spanning urban and convention markets, resort destinations, airport locations and select international regions.

Hilton Grand Vacations, the timeshare arm of the lodging giant, will be transformed into a new timeshare company. The company will manage almost 50 club resorts across the US and Europe, and enter into an exclusive, long-term arrangement with the parent company to market, sell and operate the resorts under the Hilton brand.

Hilton touched on the spinoff plans during Friday’s earnings call, which also highlighted the company topping analyst estimates for Q4. Last month, the company announced plans to launch a new, lower-cost brand known as “Tru by Hilton,” which is geared towards appealing to Millennials and price-conscious travelers.