Hilton seeks partner for leaseback agreement
19 July 2001
Hilton Group is looking at the possibility of disposing of five of its UK hotels under a sale-and-leaseback agreement.
The proposal, believed to value the unnamed hotels at £200m, would see Hilton sell the hotels, probably to a bank or other financial institution, and then run them under long-term leases.
In March Hilton struck a similar deal with Royal Bank of Scotland, selling 11 of its hotels for £312m in cash.
The attraction of such deals for Hilton is that money is released that can be used for expanding the business, while allowing the chain to continue to operate prime hotels.
