Hilton to Sell 140 European Hotels

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Hilton Hotels Corp. may unload its Scandic lodging group as well as 10 separate European hotels.


The Beverly Hills-based company said it is considering selling the Scandic brand of 130 hotels, located primarily in Scandinavia. Hilton acquired the properties through its $5.7 billion merger deal earlier this year with the company’s London-based European counterpart, Hilton Group plc.


Hilton has been selling its real-estate assets to generate cash as it focuses on managing brands. The merger reunited the companies for the first time since 1966 and allowed Hilton to expand its brands overseas.


William Truelove, an analyst with New York-based UBS Securities, said that the Scandic hotels could be worth between $1.1 billion and $1.2 billion.


The 10 separate Hilton hotels for sale include three in Germany, two in France, two in Spain and hotels in Belgium, Luxembourg and Switzerland. Truelove said they could fetch between $590 million and $650 million,. Hilton said it plans to sell the hotels by early fall.


Hilton shares closed down 35 cents at to $24.30 during Wednesday trading on the New York Stock Exchange.

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