After months of anticipation, Hilton announced the details of its planned REIT spinoff, which will be called Park Hotels & Resorts—and is set to be the second-largest publicly traded REIT in the lodging sector.
The newly formed spinoff will hold most of Hilton’s properties, and have before-tax earning of around $825M in 2016, Bloomberg reports. Hilton plans to create an additional timeshare spinoff, for three separate public companies in total.
“We expect to unlock growth opportunities that are embedded within the three businesses and take advantage of capital market and tax efficiencies,” Hilton CEO Chris Nassetta says.
The new REIT spinoff already has a CEO—Thomas Baltimore, who was poached from Bob Johnson’s RLJ Lodging Trust (itself one of the biggest lodging REITs out there). [Bloomberg]
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