Hilton Hotels Corp. has sold its Hilton Washington hotel for $290 million to a group of investors led by Canyon Johnson Urban Fund, the investment vehicle of former basketball player Earvin "Magic" Johnson.

The investors plan to spend an additional $100 million to upgrade all 1,119 rooms of the Washington D.C. hotel, the Beverly Hills-based hotel company said. Hilton will continue managing the property, outside of which President Ronald Reagan was shot and wounded in 1981.

The investment group, which includes Los Angeles-based Lowe Enterprises, also plans to reconfigure meeting spaces to accommodate multiple groups and will expand a spa and gym. A coffee bar and a fine dining restaurant are in the works.

Shares in Hilton were up $1.04, or 3 percent, to $35.50 in afternoon trading Thursday on the New York Stock Exchange.

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