{"id":1004161014,"date":"2016-12-07T01:14:05","date_gmt":"2016-12-07T09:14:05","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004161014"},"modified":"2022-12-08T17:02:58","modified_gmt":"2022-12-09T01:02:58","slug":"hilton-board-greenlights-separation-of-businesses","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/hilton-board-greenlights-separation-of-businesses\/","title":{"rendered":"Hilton Board Greenlights Separation of Businesses"},"content":{"rendered":"

By Barbra Murray, Contributing Editor<\/p>\n

\"Sunrise<\/a>

Sunrise Lodge, Park City, Utah, courtesy of Hilton Grand Vacations<\/p><\/div>\n

McLean, Va.<\/strong>\u2014Hilton Worldwide Holdings has taken a big step forward in its ongoing asset-light, capital-light strategy. The global hospitality company recently secured the green light\u00a0from its Board of Directors to spin-off its Hilton Grand Vacations Inc. timeshare division and Park Hotels & Resorts Inc. into two independent companies.<\/p>\n

\u201cThe pending spins of our timeshare and real estate businesses are the latest and arguably the most complex value creation efforts we\u2019ve undertaken to date,\u201d Christopher Nassetta, president & CEO of Hilton Worldwide Holdings, said during the company\u2019s second quarter 2016 earnings call on July 27. \u201cWe think all three companies will be uniquely positioned to capitalize on value-enhancing opportunities in their respective businesses.\u201d<\/p>\n

The Board took additional steps, including the signing off on a 1-for-3 reverse stock split for Hilton. The Board also approved the distribution of one\u00a0share of Hilton Grand Vacations common stock for each 10 shares of Hilton common, and\u00a0one share of Park common stock for each five shares of Hilton common stock. Wells Fargo Bank, N.A. will act as the distribution agent, transfer agent, and registrar for the shares of all three entities. When all is said and done, Hilton, Hilton Grand Vacations and Park Hotels will take on the following respective identities: an industry-leading fee business; a fast-growing, capital-efficient timeshare business; and a company holding premium assets with a scaled platform and strong growth potential.<\/p>\n

\"Harbourview<\/a>

Harbourview Villas at South Seas Island Resort, Captiva Island, Fla., courtesy of Hilton Grand Vacations<\/p><\/div>\n

Many analysts give the plan the thumbs-up. \u201cWe view Hilton’s intention to spin-off its owned real estate and timeshare business positively, as we expect the spin-offs will create long-term value,\u201d analysts with financial services firm R.W. Baird & Co. wrote in a note following Hilton\u2019s announcement of the plan in February. The fruits of the separation, however, may not be realized immediately. In another note issued in late October, the Baird team remarked, \u201cWhile we believe Hilton remains undervalued on a sum-of-the-parts basis, we expect the stock could be somewhat range bound until the spin-offs occur as investors might wait to put new money to work until they can buy Hilton’s asset-light, fee-based business post-spin-offs.\u201d<\/p>\n

The spin-offs of Hilton Grand Vacations and Park Hotels are scheduled to reach completion Jan. 3, 2017, at which point the companies will commence trading on the NYSE with the respective ticker symbols of HGV and PK.<\/p>\n

Hilton declined to offer any further comment in advance of the company\u2019s investor day on Dec. 8.<\/p>\n","protected":false},"excerpt":{"rendered":"

The hotel giant will spin off its Hilton Grand Vacations timeshare division and Park Hotels & Resorts into two independent companies.<\/p>\n","protected":false},"author":969,"featured_media":1004161017,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21751,11,23891,21742],"tags":[32805,33024],"class_list":["post-1004161014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-hotel","category-midatlantic","category-national","category-latest","tag-hilton","tag-hilton-grand-vacations"],"acf":[],"yoast_head":"\nHilton Board Greenlights Separation of Businesses - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/hilton-board-greenlights-separation-of-businesses\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hilton Board Greenlights Separation of Businesses\" \/>\n<meta property=\"og:description\" content=\"The hotel giant will spin off its Hilton Grand Vacations timeshare division and Park Hotels & Resorts into two independent companies.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/hilton-board-greenlights-separation-of-businesses\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-12-07T09:14:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T01:02:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/Sunrise-Lodge-Park-City-Utah-courtesy-of-Hilton-Grand-Vacations.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"900\" \/>\n\t<meta property=\"og:image:height\" content=\"549\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Barbra Murray\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/hilton-board-greenlights-separation-of-businesses\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/hilton-board-greenlights-separation-of-businesses\/\",\"name\":\"Hilton Board Greenlights Separation of Businesses - 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