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International hotel operator Hilton Worldwide Holdings eyes to spin off its hotels into a real estate investment trust (REIT), reported Reuters citing a person familiar with the matter.
The hotel operator has sought approval from the Internal Revenue Service for the spin-off, which will be tax-free, said thesource.
Hilton, which owns the hotel chains Waldorf Astoria and Conrad, did not comment on the matter.
It was reported that the transaction may involve a large portion of the hotels owned by Hilton, and that the spin-off may be announced early next year.
Hilton owns or leases 147 hotels across the world. In October, the company raised its full-year profit forecast, on the back of higher room rates and occupancy.
Report of REIT plan saw Hilton’s shares jump 5.2 percent to US$22.45 (S$31.8) on Wednesday.
Image: Hilton Hotel Singapore (Source: Terrence Ong, Wikimedia Commons)
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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