Hilton Announces the Sale of Two UK Hotels
Hilton London Metropole and Hilton Birmingham Metropole - for lb417 mil
LONDON, UK, October 19, 2006. Hilton Hotels Corporation, (NYSE:HLT) today announced it has exchanged contracts to sell two major UK hotels - the 1054 room Hilton London Metropole and the 794 room Hilton Birmingham Metropole - to Dr. Edward Wojakovski's family owned Tonstate for the cash sum of lb417 million. The transaction is expected to complete before year end 2006.
Hilton will retain long-term management contracts on both hotels. These contracts will ensure the representation of the Hilton brand in two of the largest and most impressive hotels in Europe. As part of the deal negotiated by Dr. Wojakovski and the Hilton International real estate team, it was agreed that Tonstate would dedicate the resources necessary to continue renovation programs at each of the properties.
Robert M. La Forgia, Executive Vice President and Chief Financial Officer of Hilton Hotels Corporation, commented on the sale: 'We are very pleased to have reached an agreement to sell these key meeting and convention properties to Tonstate, an outstanding owner and partner. We are also pleased that Hilton will continue to manage these properties and be associated with the hotels' dedicated team members, who deliver superior service to our guests.
'With the expected completion of the sale of the two Metropole properties, our very successful asset sale program will have delivered more than $2 billion in proceeds since early 2005. The hotel transaction market continues to be vibrant, with a high level of market interest and enthusiasm being shown for quality hotel assets. Consistent with our strategy to grow the managed and franchised business and reduce hotel ownership, we intend to place further hotels on the market; for example, we have recently listed 11 properties across Europe and also announced that we are evaluating alternatives for the Scandic brand', La Forgia added.
Hilton will use the proceeds from the sale of these hotels to pay down debt.
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
