Home' Hotel Management : HM FEB 2017 Contents HILTON COMPLETES COMPANY SPIN-OFFS
Hilton Worldwide has completed the spin-offs
of Park Hotels and Resorts (Park) and Hilton
Grand Vacations (HGV), resulting in three
independent, publicly traded companies.
Park and HGV have begun regular trading on
the New York Stock Exchange (NYSE), under
the ticker symbols PK and HGV, respectively.
Hilton also effected a previously-announced
1-for-3 reverse stock split, and will continue to
trade on the NYSE under the ticker symbol HLT.
Hilton will continue to be led by Christopher J
Nassetta, President and Chief Executive Officer.
Kevin J Jacobs will continue to serve as Hilton’s
Executive Vice President and Chief Financial
Officer and Michael W Duffy will continue to
serve as Hilton’s Senior Vice President and Chief
“These spin-offs are an important milestone in
Hilton’s continued evolution as the world’s most
hospitable company,” said Nassetta.
“The new Hilton is a fee-based, capital
efficient, and resilient business with tremendous
growth potential around the world. We believe
this will result in opportunities for our team
members and meaningful returns for our hotel
owners and shareholders.”
Hilton says its portfolio of 13 distinct brands
“leads the industry in market share premiums,
resulting in leading rates of organic net unit
growth with very low capital requirements”.
Park, headquartered in McLean, Virginia, is led
by Thomas J Baltimore as Chairman, President
and CEO. Sean M. Dell’Orto serves as Park’s
Executive Vice President and CFO and Treasurer,
and Darren W. Robb serves as Park’s Senior
Vice President and Chief Accounting Officer.
Park is now one of the largest lodging real estate
investment trusts (REIT), with 67 premium-
branded hotels and resorts with more than
35,000 rooms located in prime U.S. locations and
international markets with high barriers to entry.
HGV, headquartered in Orlando, Florida, is
led by Mark Wang as President and CEO. James
E Mikolaichik serves as HGV’s Executive Vice
President and CFO and Allen Klingsick serves
as Senior Vice President And Chief Accounting
Officer. HGV is a timeshare company that
markets and sells vacation ownership intervals,
and manages resorts in top leisure and urban
destinations. HGV’s 46 resorts are located in
premier markets, including the Hawaiian Islands,
New York City, Orlando and Las Vegas.
Banyan Tree Holdings has signed a heads of agreement with AccorHotels
that will see the global powerhouse manage the company’s properties and
collaborate to develop Banyan Tree-branded hotels around the world.
The agreement means Banyan Tree will also have access to AccorHotels’ global
reservations and sales network, as well as its loyalty program Le Club AccorHotels.
“This agreement is not only transformational for Banyan Tree, but is also
an innovation for the global hospitality industry,” says Banyan Tree Executive
Chairman, Ho Kwon Ping.
“ With the current consolidation of mega hotel companies, smaller but also
global players – many family-controlled – are also seeking strategic alliances
with the global giants.
“Our strategic alliance with AccorHotels allows us to remain an independent
company, enables us to continue securing hotel management agreements on our
own and yet accelerates Banyan Tree’s speed and scope of expansion, but with
AccorHotels helping us to grow our brands around the world.
“ We believe this agreement will propel our brands rapidly to global reach
and range and strengthen our ability to embrace change and innovation in the
hospitality industry with a strong global partner.
“ We are excited and committed to this partnership,” he said.
AccorHotels will invest an initial SGD $24 million (AUD$22.6 million) in
Singapore-based Banyan Tree and both parties will then co-develop the brands
owned by Banyan Tree around the world.
AccorHotels says this investment will be made through a mandatory
convertible debenture that at conversion will give AccorHotels an
approximately 5 per cent stake in Banyan Tree. AccorHotels also has an
option to purchase an additional approximately 5 per cent stake.
“Our collaboration with Banyan Tree is a great opportunity to complement
our business proposition to owners with iconic brands, while always better
servicing our guests,” said AccorHotels CEO and Chairman, Sebastien Bazin.
“Banyan Tree Holdings has created key leading positions across Asia with
luxury resorts, one of the fastest growing segments in the industry.
“ We will bring scale to the network through our ability to develop and
manage hotels under the Banyan Tree brands globally, hence strengthening
our leadership in the luxury hotel space.
“ We are confident that our investment will create incremental value for our
shareholders,” he said.
AccorHotels and Banyan Tree sign
strategic global partnership
Banyan Tree Lijiang, China
Hilton’s President and CEO,
Christopher J Nassetta
22 HM The Business of Accommodation
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