Hilton Group plc announces the exchange of contracts on 15
March 2005 for the sale of eleven hotels in the United Kingdom to Stardon UK Limited
- a joint venture between Starwood Capital and Chardon Hotels Limited. The hotels - which were projected to have an EBITDA in 2005 of approximately £10
million - have been sold for £111 million in cash, which equates to net book value.
Completion of the sale is expected within five weeks and, in respect of four hotels,
is subject to receiving certain third party approvals.
Wolfgang M. Neumann, Area President, Hilton UK & Ireland, said: ‘Hilton UK & Ireland
is pleased by the progression of the portfolio re-alignment process in the region,
underlined by this announcement regarding the arrangement with Chardon Hotels Ltd.
With four new hotels already underway, and other new properties close to
finalisation, Hilton expect to have replaced this room stock in the UK & Ireland by
the end of 2007.’