Hilton Hotels Corporation (NYSE:HLT) announced today that it has sold four Homewood Suites by Hilton hotel properties in two separate transactions for a total consideration of approximately $40 million. The proceeds will be used by Hilton to reduce debt.
In the first transaction, the company sold Homewood Suites by Hilton hotels in Albuquerque, New Mexico (151 rooms), Colorado Springs, Colorado (127 rooms), and Baton Rouge, Louisiana (115 rooms) to Apple Hospitality Five, an affiliate of Apple Suites, Inc. The total price for these three properties is approximately $32 million. Hilton will retain long-term management and franchise agreements. This transaction brings to 8 the number of Homewood Suites by Hilton properties purchased from Hilton by Apple Suites or an affiliate over the last three years. All of the properties are being managed by Hilton.
In the second transaction, the company sold the 114-room Homewood Suites by Hilton hotel in Scottsdale, Arizona to Woodbridge Hospitality LLC d/b/a Khangura Developments for $7.5 million. Hilton will retain a long-term franchise agreement and the property will be managed by American Hospitality LLC.
Hilton has now sold 16 of the 19 company-owned Homewood Suites by Hilton hotels it acquired as part of the 1999 purchase of Promus Hotel Corporation, while retaining either management or franchise agreements. There are a total of 122 Homewood Suites by Hilton properties located throughout the country.
“These transactions are in keeping with our strategy of being a franchiser or manager, rather than an owner, in the limited service segment of the industry, as well as our focus on continuing to reduce our debt,” said Mariel A. Joliet, senior vice president and treasurer of Hilton Hotels Corporation. “Homewood Suites by Hilton is one of the most powerful brands in the extended stay category, and we are delighted to grow our relationship with Apple Suites and begin a new one with Woodbridge Hospitality.”
Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises more than 2,000 hotels, resorts and vacation ownership properties. Its properties include many of the world`s best known and most highly regarded hotel brands including Hilton(R), Conrad(TM), Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton Garden Inn(R), Hilton Grand Vacations Company(R) and Homewood Suites by Hilton(R).
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