Hilton Hotels Corp. is selling its Scandic Hotel chain to Stockholm-based buyout firm EQT for $1.1 billion, the Bevery Hills-based company announced Friday.

The sale includes 132 hotels in nine different countries in northern Europe. The chain was acquired when Hilton bought Hilton Group Plc last year, reuniting the chain’s U.S. and international operations.

Wall Street analysts reacted favorably to the deal on Friday even though it is expected to trim its 2007 earnings by 10 cents per share, noting that Scandic was a non-core brand that was largely comprised of leased hotels. Hilton expects to net about $1.04 billion on the deal and will use the money to pay down debt.

Hilton expects the sale to be completed in April, pending approval from European regulators. Hilton has sold almost $4 billion in assets over the last two years, including the latest deal.

Shares in Hilton were up 48 cents, or 1.4 percent, to $35.38 in afternoon trading Friday on the New York Stock Exchange.