Hilton Group has completed the sales of 15 of its UK hotels to The Managed Hotels Unit Trust for £382.4m and has announced plans to sell more of its UK portfolio.
The hotels are forecast to deliver 2005 Earnings of around £27.7m before tax (2004: £23.6m) and have a net book value of £341.4m.
The company is also in very advanced discussions concerning the sale of the Hilton at Edinburgh Airport to the same unit trust.
As part of the deal, the hotels will continue to be branded Hilton under long-term management agreements with an initial term of thirty years and two options for 10 years after that.
The annual income for Hilton from the management contract is expected to be around £5.4m.
Following the high level of market interest in the sale, Hilton said it intends to place further hotels on the market with a value in excess of £400m, including the Hilton London Metropole and Hilton Birmingham Metropole.
The portfolio also comprises: Aberdeen, Basingstoke, Bristol, Bromsgrove, Coventry, Dartford Bridge, Dunkeld House, Gatwick Airport, London Olympia, Newbury Centre, Newbury North, Newport, Southampton, Strathclyde and Swindon.
In a statement today, it said: “Proceeds of the sale will initially be used to pay down debt, pending any further announcements relating to the ongoing discussions with Hilton Hotels Corporation”.
CBRE Hotels advised Hilton Group.
References: EGi News 22/11/05
