News of a REIT Spinoff Sent Hilton Stocks Soaring
After dropping 14% for the year, Hilton Worldwide Holdings shares spiked 5.2% this week—its biggest jump in two years—after news broke of the company’s REIT spinoff plans.
Hilton CEO Chris Nassetta (pictured) says the pending spinoff—part of a larger trend this year—is part of finding strategic options for its real estate.
Tax-privileged REITs are wildly popular with restaurant, retail and casino companies—Darden Restaurants completed a spinoff last month and both Macy's and McDonald's considered REITs, Bloomberg reports.
Hilton is running behind—other hotel giants, like Marriot International, have already spun off REITs.