Hilton Plans a Sale

HILTON GROUP is in talks with several parties, including Rotch Property Group, over a sale-and-leaseback deal on a package of 10 hotels, worth up to £350m.


HILTON GROUP is in talks with several parties, including Rotch Property Group, over a sale-and-leaseback deal on a package of 10 hotels, worth up to £350m. Privately owned Rotch is one of at least five companies in discussions with the hotelier, but property sources say that Rotch is unlikely to win the auction.  The other interested parties include a property fund that is controlled by Deutsche Bank, and also London & Regional Properties, the sources said. At least two other bidders are also involved in the talks to acquire the properties, which represent about 2,000 bedrooms. Hilton expects to enter exclusivity with one of the bidders this week and hopes to conclude a deal soon after that.


It is understood that a number of the institutions that have been attracted to hotel sale-and-leaseback deals in the recent past, such as Bank of Scotland and Norwich Union, are not in the running for the package of Hilton hotels. The leisure giant, which also owns Ladbrokes betting shop chain, announced in February that it hoped to raise money from a second sale-and- leaseback deal after raising £312m last year from the disposal of 11 properties to Royal Bank of Scotland. A Hilton spokesman admitted that the group was in talks with a number of parties but declined to comment further.

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