Summary
Hilton Worldwide Holdings Inc. (HLT) announced a significant strategic restructuring through a Form 8-K filed on December 5, 2016. The company's Board of Directors approved the distribution of all outstanding shares of two newly formed entities: Park Hotels & Resorts Inc. (Park) and Hilton Grand Vacations Inc. (HGV). Park will hold a portfolio of hotels and resorts previously owned by Hilton, while HGV will encompass Hilton's timeshare business. These spin-off transactions are anticipated to be completed by January 3, 2017, with Park and HGV commencing trading on the NYSE on January 4, 2017, under the ticker symbols PK and HGV, respectively.
Key Highlights
- 1Hilton Worldwide Holdings Inc. is spinning off its hotel and resort portfolio into a new entity, Park Hotels & Resorts Inc. (Park).
- 2Hilton's timeshare business will be spun off into a separate entity, Hilton Grand Vacations Inc. (HGV).
- 3Stockholders will receive shares of Park and HGV through a distribution: one share of Park for every five shares of HLT, and one share of HGV for every 10 shares of HLT.
- 4The record date for the distribution is December 15, 2016.
- 5Both spin-off transactions are expected to be completed on January 3, 2017.
- 6Park (PK) and HGV (HGV) are expected to begin trading on the NYSE on January 4, 2017.
- 7Hilton's Board of Directors has also approved a 1-for-3 reverse stock split, effective after market close on January 3, 2017.