22nd Nov 2005 07:03
Hilton Group PLC22 November 2005 Hilton Group announces the sale of 15 UK hotels and plans to sell furtherproperties 22 November 2005, London - Hilton Group plc today announces the completion ofthe sale of 15 hotels in the UK to The Managed Hotels Unit Trust, with fundingarranged by RBS Group. The purchase price of the hotels is £382.4 million incash. The final consideration is subject to adjustment to reflect interest ratemovements today which are expected to be minor. The hotels are forecast to deliver 2005 EBIT of £27.7 million (2004: £23.6m) andhave a net book value of £341.4 million. The company is also in very advanceddiscussions concerning the sale of the Hilton at Edinburgh Airport to the sameparty. As a key part of the transaction the hotels will continue to be branded Hiltonunder long-term management agreements with an initial term of thirty years andtwo options for 10 years thereafter. The annual income for Hilton from themanagement contract is expected to be around £5.4 million. Following the high level of market interest in the sale, Hilton Internationalintends to place further hotels on the market with a value in excess of £400m,including the Hilton London Metropole and Hilton Birmingham Metropole. Proceeds of the sale will initially be used to pay down debt, pending anyfurther announcements relating to the ongoing discussions with Hilton HotelsCorporation (HHC). *** Enquiries:Brian WallaceDeputy Group Chief Executive and Finance Director (mobile +44 (0)7974 229299)Alex PagettGroup Corporate Affairs Director (mobile +44 (0)7974 229888)Julian ArlettHead of Investor Relations (mobile +44 (0)7974 229462) Telephone: +44 (0)20 7856 8109 Note to Editors The hotels involved are: - Hilton Aberdeen Treetops- Hilton Basingstoke- Hilton Bristol- Hilton Bromsgrove- Hilton Coventry- Hilton Dartford Bridge- Hilton Dunkeld House- Hilton London Gatwick Airport- Hilton London Olympia- Hilton Newbury Centre- Hilton Newbury North- Hilton Newport- Hilton Southampton- Hilton Strathclyde- Hilton Swindon This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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