The UK-based Hilton Group has sold its hotel and leisure division to Hilton Hotels Corporation (HHC) for nearly £3.3bn, re-uniting the worldwide brand which split up in 1964. The sale of Hilton International was agreed after four months' negotiations with the US-based HHC.
It brings together under one company more than 2,500 properties marketed under a variety of brands. When the two sides split in 1964, HHC had the rights to operate the brand in the US while Hilton International had the rights for the rest of the world. Hilton International was bought by betting group Ladbrokes in 1987 and later changed its name to the Hilton Group.
The sale is expected to be completed by the first quarter of 2006 and the Hilton Group, which said a "substantial" amount of the money from the sale will go to shareholders, will change its name back to Ladbrokes plc. On completion, Ian Carter, ceo of Hilton International, will become executive vp and ceo of Hilton International at HHC.
David Michels, ceo of Hilton Group, will resign but transfer to HHC, along with group finance director Brian Wallace, to help in the transition process.
Stephen Bollenbach, chairman of HHC and one of the driving forces behind the re-unification, said: "This transaction represents the final and logical step in a process that began in 1997 with the signing of a strategic alliance between HHC and Hilton International as a global lodging industry leader. "Hilton International has an experienced and talented team of professionals with
unsurpassed knowledge of international markets and we are excited about the role they and our
existing team will play in the future growth and prosperity of our company."
Mr Michels said: "This is a good deal for our shareholders and will offer new opportunities for the 70,000 employees currently working in Hilton International around the globe. "I am very proud of the Hilton brand, which has consistently been acknowledged as one of the world's leading brands.
"I fully expect the enlarged company to grow and our customers can look forward to enjoying even more opportunities as a result of the strengths of the unified businesses."