Hilton Hotels Corp. (NYSE:HLT) said today that is has closed on its previously announced sale of leases to RFS Hotel Investors Inc. (NYSE:RFS) for approximately $60 million in cash.
Additionally, Hilton sold 973,684 shares of RFS preferred stock back to RFS for $13 million in cash.
Hilton said the approximately $73 million in proceeds will be used for general corporate purposes, including reduction of debt.
Under terms of the agreement, Hilton is selling 52 operating leases and four management contracts on hotels owned by RFS. Hilton, however, remains a franchisor on 20 properties owned by RFS.