Hilton Hotels Corporation (NYSE:HLT) today announced that it has sold seven Homewood Suites by Hilton properties for approximately $95 million in cash. The company will use the proceeds from the sale for general corporate purposes, including debt reduction.
“We are pleased to have been able to sell these assets at attractive prices while continuing to franchise and manage the properties. This transaction is in keeping with our focus on owning strategic hotels in major markets with high barriers to entry, while growing our income stream from franchising and managing,” said Stephen F. Bollenbach, Hilton president and chief executive officer.
The properties were sold to RLJ Development, LLC, a newly formed entity headed by Robert L. Johnson, chairman and chief executive officer of BET Holdings II, Inc., and a director of Hilton Hotels Corporation. Under terms of the agreement, Hilton will retain long-term franchise and management contracts for each property. The transaction, which closed today (except for the Washington, D.C. property, scheduled to close in the first quarter 2001), is expected to be slightly accretive to Hilton`s 2001 earnings.
The seven properties are located in Washington, D.C. (175 rooms); Billerica, Massachusetts (147 rooms); Brentwood, Tennessee (121 rooms); Bloomington, Minnesota (144 rooms); Dallas, Texas (137 rooms); Farmington, Connecticut (121 rooms) and Maitland, Florida (144 rooms).
“This opportunity to invest in high-quality hotels such as these Homewood Suites by Hilton hotels is consistent with my business philosophy of being associated with well-known and highly-regarded brands in the travel, leisure and entertainment industries,” said Mr. Johnson.
Homewood Suites by Hilton is one of the leading brands in the extended-stay segment. At September 30, 2000 there were 91 Homewood properties, with plans for approximately 30 additional units to be opened over the next two years.
Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises more than 1,900 hotels, resorts and vacation ownership properties. Its portfolio includes many of the world`s best known and most highly regarded hotel brands, including Hilton, Conrad, Doubletree, Embassy Suites Hotels, Hampton Inn, Hampton Inn & Suites, Harrison Conference Centers, Hilton Garden Inn, Hilton Grand Vacations Company, Homewood Suites by Hilton, and Red Lion Hotels & Inns.
The following service marks are owned by Hilton Hospitality, Inc.: Hilton(R), Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Homewood Suites(R) by Hilton, Red Lion Hotels & Inns(R), Hilton Grand Vacations Company(R) and Conrad(TM).