MCLEAN, Va. — Hilton Worldwide Holdings Inc. has formally filed to separate into three distinct, publicly traded companies.
Through this transaction, the company’s core Management & Franchise business will continue operating under the Hilton name while its timeshare business and the bulk of its real estate business become their own entities.
“The filing of the Form 10 Registration Statements is an important milestone in simplifying Hilton to a capital-light, fee-based business, while fully activating our real estate and timeshare businesses as stand-alone companies,” says Christopher J. Nassetta, president and CEO of Hilton. “As a result of the proposed transactions, we expect to unlock growth opportunities that are embedded within the three businesses and take advantage of capital market and tax efficiencies. We look forward to completing the spins later this year, realizing significant benefits for all three companies and continuing to generate long-term value for Hilton shareholders.”
Following separation, Hilton’s timeshare business will operate as Hilton Grand Vacations. The new company’s management team will be led by Mark Wang, who has led Hilton’s global timeshare operations since 2008.
The new real estate business will be named Park Hotels & Resorts and is expected to elect for REIT status. The Park team will be led by industry veterans Tom Baltimore, formerly of RLJ Lodging Trust, and Sean Dell’Orto, currently SVP and treasurer of Hilton. The pair will hold the positions of CEO as CFO respectively.