Hilton has exchanged contracts to sell two major UK hotels to Dr. Edward
Wojakovski’s family owned Tonstate for the cash sum of £417 million.The hotels are the 1054 room
Hilton London Metropole and the 794 room Hilton Birmingham Metropole.
transaction is expected to complete before year end 2006. Hilton will retain
long-term management contracts on both hotels. These contracts will ensure the
representation of the Hilton brand in two of the largest and most impressive hotels
in Europe. As part of the deal negotiated by Dr. Wojakovski and the Hilton
International real estate team, it was agreed that Tonstate would dedicate the
resources necessary to continue renovation programs at each of the properties.
Robert M. La Forgia, Executive Vice President and Chief Financial Officer of Hilton
Hotels Corporation commented on the sale: “We are very pleased to have reached an
agreement to sell these key meeting and convention properties to Tonstate, an
outstanding owner and partner. We are also pleased that Hilton will continue to
manage these properties and be associated with the hotels’ dedicated team members,
who deliver superior service to our guests.” “With the expected completion of the
sale of the two Metropole properties, our very successful asset sale program will
have delivered more than $2 billion in proceeds since early 2005. The hotel
transaction market continues to be vibrant, with a high level of market interest and
enthusiasm being shown for quality hotel assets. Consistent with our strategy to
grow the managed and franchised business and reduce hotel ownership, we intend to
place further hotels on the market; for example, we have recently listed 11
properties across Europe and also announced that we are evaluating alternatives for
the Scandic brand”, La Forgia added.
Hilton will use the proceeds from the sale of these hotels to pay down debt.
Hilton was advised by Christie & Co and SJ Berwin. Tonstate was advised by CBRE
Hotels and DLA Piper.