Hilton sells 15 hotels in the UK, could sell more |
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Tue, 22 Nov 2005 12:05
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LONDON: Luxury hotel chain Hilton Group Plc. has sold 15 of its hotels in the U.K. to Managed Hotels Unit Trust for 382.4 million pounds in cash. The deal has been financed by the Royal Bank of Scotland. The hotels have a net book value of 341.4 million pounds.
Hilton later said it is in advanced talks to sell its hotel in Edinburgh airport in Scotland to the same trust. It also intends to sell more hotels, including Hilton London Metropole and Hilton Birmingham Metropole, and raise a total of more that 400 million pounds. The funds generated will be mainly used to bring down debts, the group said.
The hotels sold are at Aberdeen, Basingstoke, Bristol, Bromsgrove, Coventry, Dartford Bridge, Dunkeld House, London Gatwick Airport, London Olympia, Newbury Centre, Newbury North, Newport, Southampton, Strathclyde and Swindon.
The deal provides for these hotels to retain the Hilton brand for an initial term of 30 years under long-term management agreements, which will bring in a revenue of 5.4 million pound annually to the group.
The group said it is also in talks with U.S-based Hilton Hotels Corporation (not a group company) for sale of hotels. Hilton in the U.K. and the U.S. had become separate entities in 1964, when Hilton Hotels Corporation spun off its non-American business.
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