BEVERLY HILLS, Calif., Dec. 21 /PRNewswire/ -- 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 marginally 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.
SOURCE BET Holdings II, Inc.
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